The truth is that check guarantee may not be the best choice for most merchants. What should you consider before you decide on a check guarantee program.

• How many checks are returned each month NSF, Acct Closed, RTM, Stolen, Stop Payment, etc.?
• What is the average total dollar per month of those returned checks? What percentage of your customers checks are returned each month?
• Do you or your employees get the check writer's ID (driver's license/ social security) on every check?

Now let's do the math:

You own 5 stores and you receive 25 checks each day, the average check is $35.00.

You are accepting $26,250.00 in checks per month.

This represents 750 checks per month.

Average number of checks returned 2% (15 checks or $525.00)

Let's say the cost of guaranteeing those checks is 3% ($26,250.00/3%= $787.50).

You add to that the cost to verify checks $.35 x 750=$262.50.

Wait we aren't finished.

Of those 2% returned checks some do not have Driver's License or Social Security Numbers on them.

Big oops, those checks are not covered under the guarantee.

They are sent to our Check Collection Department . And that is okay.

You need to include the new check verification equipment expense and the monthly statement's fee.

I think you are getting the picture.

Grand Total $1,084.50 your cost.

Returned check guarantee paid to you $425.00 (Some checks don't qualify for the guarantee because they are "two party" or don't have the "required information" on the check")

DO YOU REALLY WANT CHECK GUARANTEE?

MAYBE YES THEN MAYBE NO

We are happy to have your business