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	Other Check Collection Alternatives and Interesting Facts

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Our Check Recovery Program, is available to Retail Merchants, as well as Contractors and other Service Businesses!

Understanding Your Options

ChekXcept isn't the only solution to bad check writers. It is important to understand the other proposed solutions. There are Check Guarantee Companies, and Check Verification Systems.

Other solutions can't stack up against ChekXcept.

Other Check Collection Alternatives and Interesting Facts

It is important to understand your options.

The Truth About Check Verification Systems

A check reader scans a check, compares the information to a database of bad check writers, and then tells you if the person standing in front of you is on that list. The database, referred to as a negative database, contains only the names of check writers who have written bad checks and have not made good on them. Sometimes the database only has the names of regional offenders. There are several problems with this system.

First this approach requires you to rent, lease, maintain, and set-up equipment.
A check writer may be from outside your area and therefore not in the negative database.
A check writer may use the delay in check cashing to float money. Each time the check bounces, and it clears on redeposit, his name is never added to the database. However, what if this time he doesn't make a deposit to cover his check?
A bad check writer may have recently acquired access to an account, or opened an new account. In this case, their information will not be in the database.
A check writer may simply be passing fraudulent checks. They are not real, can not be cashed, and they won't match any information in the negative database.

YOU NEED TO FOCUS MORE ON THE CHECK COLLECTION COMPANY BEHIND THE EQUIPMENT AND LESS ON THE EQUIPMENT!

The Myth Behind Check Guarantee companies

Check guarantee companies operate by promising you that they will return 100% of the face value of any returned checks over a level set by you. They claim that you will never see bad checks over that level again. They claim you will receive 100% payment for the returned checks. The entire program is misleading and not true. Let's take a closer look at this:

Lets assume you take in 1,000 checks. If 20 are returned, that is 2% of checks. Most of these will be collected within the first 45-60 days.
In the mean time you pay a service fee to the guarantee company on EVERY check that goes through your register, 98% of which are good.
On top of that, upon collection, the guarantee company charges the check writer a fee, and the merchant gets none of that.
You will need to rent or lease equipment from the guarantee company.
All checks below your target limit still need to be collected by you.

Interesting Statistics

Some retailers don't take checks because of the possibility that 1-2% may be returned. However they happily pay 4.5% on credit and debit card transactions. Accepting checks is a no cost alternative to credit cards.
Banks earn more than $5.6 billion a year from bounced check fees.
Consumers prefer checks 4 to 1 over debit cards.
83% of the population use checks for shopping.
During the last 5 years, the value of checks written has increased 25%.
53% or retailers are reporting continued check growth.
88% of the population have a valid checking account.
61% of the public does not have a credit card.
64% of consumers spend more when paying with a check.

THE COLLECTION INDUSTRY SERVES AN IMPORTANT ROLE IN U.S. BUSINESS.
THE COLLECTION INDUSTRY SAVES AMERICAN FAMILIES AN AVERAGE OF $311 A YEAR THEY OTHERWISE WOULD HAVE SPENT IF BUSINESSES RAISED THEIR PRICES TO COVER LOSSES DUE TO BAD CHECK WRITERS. –Source: U.S. Treasury Department

ChekXcept
RR#2, Box 2159A
Stroudsburg, PA 18360
Phone: (888) 282-2802 · Fax: (570) 422-1025
Member of American Collectors Association
Contact us at: checkbook@verizon.net