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In what cases might a Check Verification company deny a check?
Home » Accounting » Check Verification » In what cases might a Check Verification company deny a check?Check verification companies may decline a check for a number of reasons. For example, if a customer has negative information on file, such as a returned check outstanding or a bank account closed by a bank, a customer might get denied. Or if a person has bounced checks repeatedly, he or she may be denied. But be aware that some agencies will deny for one bounced check; others deny over a history of check bouncing. Ask the company what its stance is on this.
Some companies limit the number of checks they approve each day. If yours is a high-volume business, this obviously won’t work for you. The company might approve only a certain number each day—then deny the next one, causing you headaches and lots of trouble with a potential customer who may actually have the funds to pay you.
Some people may be listed as someone who writes bad checks by mistake, even with a good record. The person may have been a victim of check fraud, passing bad checks, and so on. Keep this in mind when dealing with customers whose checks have been denied. Don’t automatically assume they’re terrible people. Just let them know the circumstances, and give them a chance to rectify the situation. No one needs to be embarrassed over writing a check.
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- In what cases might a Check Verification company deny a check?