The Truth about Check Truncation, Check Guarantee

Traditional Check Collections and Merchant Self collection!

HOME || About US || FAQ  ||  Free Tips  || State Fees

Merchant Application  || Independent Office Application || Reps Needed

References Available!

       

On this page you can review "All" Available alternatives to bad Check Collections as well as checking out our COMPARISON Chart.  You'll have proof that we are the best!

COMPARISON                                                 Traditional Collections

Typical collection Percentages 50% AND less! But cost you 35% of the face amount of EVERY check!  So 50% is never collected plus you lose 35% of the funds on the ones that are collected!

The typical starting fee for this service is 35% of the face amount of the check PLUS the collection company keeps the collection fee. Average percentage of collection is  approximately 50% without going to court.  Court usually only collects an additional 10% max.  Setup cost $0.00 to $200.00.  No Special Equipment needed. Typically no monthly fee is required and no minimums.  This is why this method is so popular. NO SETUP ... NO MONTHLY FEES ... NO MINIMUMS! Like a wolf in sheep's clothing ... It has a lot of appeal on the surface ...check out the "actual cost" by clicking on any Comparison!

COMPARISON		Check Guarantee
WE CAN SELL THIS SERVICE AND REFUSE TO DO SO!  WHY?  It is very bad for "our" merchants and we will not offend them and eventually loose them once they realize the non-Value of this service!!!		There is no such thing!  WHAT?  That's right!  Here is the typical program.  The Check Guarantee (C.G.) company charges the merchant 3% of the check amount plus 35 cents a transaction for C.G.  If a check bounces the C.G. Company has 30 days to pay the merchant 90% of the face amount of the check.  Whenever they do pay the 90 % the clock starts ticking.  60 days after the C.G. company paid  the 90 % if they haven't collected the check they charge the entire 90% back to the merchant!  Typical collection percentage approximately 50%!  Setup fee is usually wrapped up in the check reader equipment. Prices range from $399 to $1000 cash or a lease that the total payments exceed $2000.00  PLUS there are monthly service fees & minimums required! Check out the Comparison page!

COMPARISON		CHECK  Truncation
Typical cost to setup $1000 or $50 a month lease for 36 months.  Per transaction cost ranges from 35 cents to 65 cents. Monthly minimums apply. Percentage of checks collected 45 to 50%.		What is check truncation?  (It is also called Check Conversion.)  The customer writes the merchant a check and the merchant runs it thru a "check reader" converting it to a Electronic Transaction. The merchant then hands the check back to the check writer and he doesn't have to worry with endorsing it and depositing it.  Cuts down on labor! Sounds pretty good doesn't it!  Especially when it is being sold to them under the guise that it will reduce there check collection problems.  BUT does it?  NO! It is still just a check transaction and the same percentages of them bounce AND in many case it actually increases the number of bounces checks! Why?  97%  of all "Hot Checks" are written with the check writer knowing there is not enough funds in the bank to cover the check!  The Electronic transaction speeds up the clearing process so the check writer has less float and they usually get caught when the normal method doesn't always catch them.  It bounced and the merchant can't get the check writer to pay for it either by electronic re-deposit or phone calls.  The merchant decides to pursue the D.A.  PROBLEM!  The merchant doesn't have the check ... you know... "the evidence?!"  How can the D.A. prosecute when he has no signature to prove who signed the check??  As of this writing we do not know of any D.A. that will pursue prosecution of "Hot Checks" that are electronic conversions. See Our Comparison page!

Merchant Self Collects

A non Professional collector and A Non-legal person.  Percentages are the lowest of all ... 25 to 45% are typical maximum percentages. This why the other methods survive! Make sure you review Our Comparison page!