VeriChek, Inc.
  • Home
  • General Debt Collection
  • Check Collection
  • Contact
  • Links & Forms

Informed Merchants DO Choose Checks!

With the advent of Check 21 and the increase in the prevalence of electronic payments, are checks still a preferred payment method for the merchant?  Should you still accept checks?

The answer is a definitive “yes”!


Compare the cost of accepting credit cards to accepting checks:

Credit Cards

The average cost (including statement & transaction fees) of credit cards for a restaurant is 2.25% - a convenience store averages over 3%.  

Checks

What percentage of checks bounce?  1.7%.  (Less than 2% of checks written at point of sale will bounce.  Less than 1% of all checks bounce, including those written for mortgages, utilities, etc.)  If you don’t collect a single check, you’re close to the expense of card processing.  If a mere 50% of those are collected, the cost for a merchant to take a check is 1% - less than half the cost to take a credit card! (Most of our grocery accounts have less than 1% bounce when using verification.)

The difference?  Perception.  With card processing, a typical merchant sees the cost of acceptance.   With a bounced check?  You see theft.  Reality:  98+% of checks clear with no cost.


When looking at the bottom line, which payment method is preferred?

Copyright VeriChek, Inc. © 2017. All Rights Reserved