Check Cashing Verification Process

by K.A. Francis; Updated September 26, 2017

Check cashing verification is a process in which checks are screened for acceptance. There are several check verification services available; Chex Systems, Equifax and TeleCheck all offer electronic check verification services. The service alerts a business if a check that is being offered for payment is written from a viable checking account or if the check is likely to be returned for nonsufficient funds (NSF).

What Verification Means

Checks that go through a verification process are screened to find out if the check was written on an open or closed account, if the account has a positive balance, if there are any nonsufficient funds (NSF) charges on the account, if there are any stop payments on the account and if the checking account is a valid account.

Depending on the results of the screening, the check is either approved or declined. The whole process takes between 8 and 10 seconds.

How the Screening Is Completed

When a customer presents a check for payment, the check is scanned using a device that is connected to a phone line. The account number is scanned and electronically sent to a national database which screens the account for the factors mentioned previously. If the check passes all the screens, an electronic finds transfer request is sent to the customer's bank and the check is processed. If the check does not pass all the screens, the check is declined and the customer will be asked to pay with an alternate method.

About the Author

K.A. Francis is a freelance writer with over 15 years experience, and a small business consultant and jewelry designer. She holds a Bachelor of Arts in English and business administration and a Master of Arts. She has written for "The Einkwell," "Windsor Parent," MomsOnline, Writer's Stew, Lighthouse Venture Group and others. Her jewelry design company, KAF Creations, has been in operation since 1998.