Check Verification

Unlike debit cards, which can provide verification of funds at the point of transaction, paper checks commonly take about two business days to clear. By that time, a scammer could be long gone, so it’s important for merchants to validate the authenticity of personal or business checks before accepting them as payment.

Check verification can happen in a couple of ways. The merchant could contact the financial institution the check was written on. Most banks will verify the account number, but not all will tell you how much money is in that account – especially over the phone.

This service is often free, but it takes time. Another option is to hire a third-party check verification service. That’s faster and easier for the merchant, but will likely cost between $0.15 and $0.25 per transaction (and perhaps a monthly service fee).

The best method to use depends on several factors. Getting just a few checks a month, for example, might make verification less important. On the other hand, if any of those checks are in the 4-digit range or higher, verification becomes a must.