Check Guarantee is an optional service that should be available to you from your Credit Card Processing Company. You do the check guarantee through the terminal itself. What you do is type in the check writer`s info into your terminal. The terminal will dial out and check against a database of bad check writers. If that person is not in the database, you will get an approval number that you write on the check. If when you deposit the check the check bounces for having insufficient funds in the account, you will be paid within 7 business days regardless of the check bouncing as long as you have the approval number written on the check.
There are additional fees to this type of program so you need to weigh out whether or not it`s worth it for you, but with $100+ checks, it`s probably worth it for your business depending on how many bad checks you are really seeing.
I can`t speak for your processor (if you accept credit cards already), but I know with my company, check guarantee fees are as follows (just to give you an idea and give you some numbers to crunch)
Monthly Check Guarantee Service Fee: $10
Monthly Minimum: $25 (equal to about $1700/month in checks)
What you pay per check: 1.49% of check amount + $0.19/transaction
I hope this info is helpful for you.
United Bank Card
866-207-6007 ext 303