Check Processing Services:
Save time and money utilizing Check Services! But first consider these items before deciding if these services will benefit you and your bottom line.
Check Services can cover all or some of your checks. This is dependent upon your past history with checks and any unsavory issues. Merchants who choose to “cherry pick” checks should be aware that the cost to process will be slightly increased due to less volume processes.
Check Services can Guarantee or Verify the checks. The difference is that verification only tells the merchant if the check is “real”. It does not provide any information about availability of funds. The guarantee service will approve or deny the check based on the amount of funds in the customers account. The cost to process is the same as a credit card ($ x Discount Rate) + Transaction Fee. As a merchant you avoid any NSF Fees.
Check Services can be Image or Non-Image Guarantee services. Imaged Services you will return the check to the consumer. Non-Image checks you retain on file, but never have to deposit the checks at the bank. After the check is swiped, the money is deposited into your account in 24-48 hours. For our small to medium merchants, we strongly recommend Non-Image Services based purely on the volume of checks.
What are the annual/monthly losses due to bad checks, if any? On average merchants will lose $600 per year in bad checks if they are processing more than $1,500 per month in checks.
Do you process approximately $1,500 or greater in check dollar volume? If so, then you will likely avoid any minimum fees which are put in place to ensure that all fees are covered for the services.
Do you make multiple trips to the bank each week? Let’s do a calculation together….
Sally is responsible for managing all the checks that her company receives. On an average month The Widget Group processes 300 checks, which amount to $10,000. Sally goes to the bank two times per week to deposit the checks. Each deposit takes approximately one hour (preparing deposit slips and checks, driving, waiting, depositing, etc). Sally is paid $18/hour by The Widget Group.
In this scenario, the labor related to processing checks will cost The Widget Group time and money. Here is the calculation:
Labor Cost Savings per Month = (2 trip/week x 4 weeks/month) x 1 hour/trip x $15/hour = $120/month $120/month x 12 months = $1,440 per year in annual Cost Savings!