Check Processing

What is Check Guarantee?

Check Guarantee is a guarantee that you will be paid on the paper checks you accept from your customers. It can be considered a type of insurance. A fee is charged in exchange for paying you on any checks that are returned. There is no need to worry about accepting checks or collecting on returned checks.

Check Guarantee services involve the electronic transmission of information about the check and the person writing the check. This information is then processed electronically:

  • The account number read by the terminal is compared to a central data base of “bad” numbers
  • The information about the person writing the check is presented to an automated credit scoring system – if the score is too low, the check guarantee is declined

For approved checks, the service provider guarantees the amount of the check within pre-arranged parameters at pre-set rates. CMS partners with many Check Guarantee service providers.