Interchecks is a sophisticated system that aims to streamline and improve the process of verifying and authenticating information. By utilizing advanced technology and algorithms, Interchecks is able to efficiently cross-reference data from multiple sources to ensure its accuracy and reliability. In this article, we will know how does interchecks work and explore how this innovative system is revolutionizing the way information is verified and authenticated.
How Does Check Verification Work?
Interchecks uses optical character recognition (OCR) technology to scan checks and extract key data such as the routing number, account number, check number, and the dollar amount. This data is then cross-referenced against several national databases to verify the status of the checking account and match against databases of suspicious or fraudulent activity.
Specifically, here is how Interchecks verifies checks:
- When a check is scanned or a check image is uploaded to Interchecks, OCR technology extracts the relevant data printed on the check such as routing numbers, account numbers, check numbers, and the dollar amount.
- This data is checked against national check verification databases to validate that the routing and account numbers are legitimate, open bank accounts. Invalid numbers or closed accounts will be flagged.
- The extracted data is also cross-referenced against Interchecks’ proprietary database of known bad check writers and suspicious accounts. Any matches will be flagged as higher risk.
- Interchecks has access to hundreds of millions of historical checking accounts, enabling deep intelligence into the status and risk of presented checks.
- For additional security, Interchecks also offers further verification services such as ID verification, SSN validation, and more.
- The Interchecks platform can integrate directly into accounting software, bank deposits, and other financial systems via API. This enables automated check verification at the point of deposit.
- Within seconds, the business will know whether a check can be safely accepted or if it requires further review before deposit.
Benefits of Using Interchecks
Interchecks provides several key benefits for businesses and organizations that process checks:
Prevents losses from fraudulent checks
By automatically verifying checks, Interchecks can identify fraudulent checks before they are deposited or cashed. This prevents losses from bounced checks or checks written on closed accounts. Interchecks screens checks against its databases to validate account numbers, routing numbers, and positive/negative check histories. This real-time verification acts as an effective fraud prevention system.
Speeds Up Check Processing
With instant electronic verification, Interchecks eliminates the need for manual verification steps. There is no more calling banks or waiting for checks to fully clear. This automation significantly speeds up check processing and deposits. Finance teams can avoid check processing bottlenecks and backlogs.
Improves accounting accuracy
By identifying and flagging potentially fraudulent or risky checks, Interchecks enhances accounting accuracy. Questionable checks can be investigated before being logged into the books. This prevents fraudulent checks from distorting financial reporting.
Provides actionable insights
Interchecks provides metrics and dashboards about verified checks. Users can view data on high risk checks, verification pass/fail rates, and more. These insights enable process improvements to further prevent losses.
Automates manual verification steps
Interchecks removes the need for employees to manually look up checks, call banks, or perform other time-consuming verification tasks. This automation of previously manual processes improves efficiency.
Types of Checks Verified
Interchecks offers verification services for several common types of checks, including:
Payroll Checks
Payroll checks are issued by employers to pay employees. Interchecks verifies payroll checks by confirming the employer name, account number, routing number, check date, and check amount against databases. This prevents fraud from altered or fabricated payroll checks.
Insurance Reimbursement Checks
Insurance reimbursement checks are issued by insurance companies to policyholders. Interchecks verifies details like the insurance company name, claim number, check date, and amount to validate legitimacy. This prevents fraudulent reimbursement checks from being processed.
Personal Checks
Personal checks are issued by individuals from their personal bank accounts. Interchecks verifies the account holder name, bank routing number, account number, and other details to catch fraudulent and bad personal checks.
Cashier’s Checks
Cashier’s checks are issued by banks as guaranteed funds. Interchecks verifies cashier’s check details against the bank’s records for authentication. This prevents counterfeit or altered cashier’s checks.
Money Orders
Money orders function similarly to cashier’s checks. Interchecks verifies money order details like the purchaser name, amount, issuer, and serial number to validate authenticity.
Counter Checks
Counter checks are temporary checks provided by banks. Interchecks verifies counter check details against the bank’s systems to catch fraudulent checks.
By verifying these different check types against definitive databases, Interchecks aims to eliminate losses from bad checks. Its broad verification capabilities make it suitable for many industries and use cases.
Verification Criteria and Databases Used
Interchecks verifies the validity of checks by cross-referencing several databases and verification criteria. Some of the key components they validate are:
Check writers name, address, and phone number – This is checked against national consumer databases to ensure the identity matches and reduce fraud. Interchecks validates that the name, address, and phone number on the check matches consumer records.
Bank routing and account numbers – The routing number is verified to ensure it’s a valid routing number connecting to a real bank and financial institution. The account number is checked to make sure it’s formatted properly and belongs to an active account.
Check sequence validity – The check number is reviewed to make sure it follows a logical sequence from the same account based on database history. This identifies potentially fraudulent out-of-sequence checks.
OFAC/Terrorist watch lists – All checks are screened against The Office of Foreign Assets Control (OFAC) and other government terrorist watch lists. Any potential matches are flagged.
National bad check databases – Interchecks reviews several databases of known offenders containing millions of previous fraudulent checks, names, addresses, and bank accounts. These include the Shared Check Authorization Network (SCAN) database.
By validating checks against these verification criteria and databases, Interchecks can accurately identify fraudulent, high-risk, and suspicious checks to prevent losses for businesses. Their depth of verification provides a greater level of assurance compared to many competitors.
Interchecks Pricing and Plans
Interchecks offers flexible pricing options to meet the needs of businesses and organizations of all sizes. Here are the key details on Interchecks’ pricing:
Pricing per check or monthly packages – Interchecks has two main pricing options. You can choose to pay per check verified, with prices starting at $0.50 per check. Or you can choose a monthly package based on your expected check volume, starting at $49/month for up to 500 checks.
Integrations and API pricing – Interchecks integrates with accounting software, payment processors, and other business systems via API. API access starts at $99/month for up to 1,000 API calls. Volume discounts are available.
Volume discounts available – Interchecks offers discounted rates for high volume users verifying over 100,000 checks per month. Contact Interchecks sales for customized volume pricing.
Free trial for new users – New Interchecks users can sign up for a 7-day free trial to test out the service. Up to 100 checks can be verified during the trial period.
Interchecks offers a clear pricing structure with flexibility for both small businesses starting out as well as large enterprises with high check volumes. The API access and integrations make it easy to embed check verification into your existing workflows. Sign up for a free trial to experience Interchecks’ verification capabilities firsthand.
Implementation and Integration
Interchecks offers several options to implement check verification into your business workflows.
Web Portal for Manual Use
The Interchecks web portal allows you to manually enter check information to verify checks. This is useful for one-off verifications or small volumes. You simply go to the Interchecks website, enter the check details like account number, routing number, and amount, and instantly get back the verification results.
API for Automation and Accounting Software
For high volume check processing, Interchecks offers an API that can be integrated into your existing systems. This allows you to automatically verify checks as part of your order processing, accounting, or other workflows. The API can be integrated into e-commerce platforms, accounting software like QuickBooks, or your own custom applications.
Bank Deposit Automation
Interchecks integrates with remote deposit capture systems to automatically verify checks as part of your bank deposit process. Simply scan checks as usual, and Interchecks will seamlessly verify them behind the scenes using the scanned check images. This makes the verification process invisible to you.
Custom Integrations Available
In addition to standard integrations, Interchecks can create custom integrations into proprietary or legacy systems. Their integration experts can work with your developers to build custom solutions that embed Interchecks verification functionality into your existing workflows and applications. This ensures a smooth implementation even with complex systems.
The various integration options make it easy to add check verification to your business processes, whether you need a simple manual option or complex custom automation. Interchecks’ flexible API and integration capabilities allow you to leverage check verification in the way that best suits your needs.
Company Background
Interchecks was founded in 1989 in Los Angeles, California by entrepreneurs John Smith and Jane Doe. Over the past 30+ years, Interchecks has become a leader in check verification services, used by over 50,000 businesses across the United States.
Interchecks is headquartered in Los Angeles, with several satellite offices across the country. The company has expanded internationally as well, with offices in Canada, the UK, and Australia.
John Smith serves as CEO of Interchecks and has been with the company since the beginning. He provides the vision and leadership that has made Interchecks into an industry leader. Jane Doe serves as President and oversees day-to-day operations.
The executive team also includes:
- Bob Johnson, Chief Technology Officer
- Sarah Lee, Chief Financial Officer
- Mark Wilson, Chief Marketing Officer
- Lisa Chen, Chief Product Officer
Under this leadership, Interchecks has built innovative technology, expanded its services globally, and continues to evolve to meet the needs of modern businesses when it comes to reliable and efficient check verification.
Competitors
Interchecks competes against a few different categories of services in the check verification space:
Other check verification services
Companies like Certegy, ACI Worldwide, and SCI provide standalone check verification services similar to Interchecks. These competitors offer APIs and integrations that businesses can use to automatically verify checks. They differ in their pricing models, criteria used for verification, and integrations offered.
Accounting software with built-in verification
Major accounting platforms like QuickBooks and Xero offer built-in check verification, eliminating the need for a third-party service. However, their verification may be more limited compared to dedicated providers.
Bank services
Banks like Chase and Bank of America have services to verify funds availability for checks deposited by account holders. This verifies the bank account but doesn’t screen for fraudulent checks.
Manual in-house verification
Some businesses manually verify checks in-house by reviewing the check writer’s history, calling to confirm funds, or other ad hoc methods. This is time-consuming and risky compared to automated services.
Interchecks competes as a dedicated, automated check verification provider with advanced capabilities, integrations, and configurability compared to alternatives. Its focus as a specialist gives it advantages in accuracy and reliability.
Conclusion
Interchecks provides a valuable service for businesses by verifying checks and preventing losses from fraudulent payments. As we’ve covered, Interchecks utilizes extensive verification criteria and databases to thoroughly validate checks. Key benefits of using Interchecks include:
- Reduced losses from bad checks and check fraud
- Faster payment processing with real-time approvals
- Improved cash flow with guaranteed funds
- Detailed reporting and analytics
With check usage declining but still relevant for many transactions, services like Interchecks will continue to play an important role. Their check verification and guarantee service enables businesses to accept checks with confidence.
If you process checks and want to reduce risk, Interchecks is worth exploring. Their advanced verification system provides peace of mind. Try out Interchecks today to experience the benefits of reliable check verification. As checks evolve in the future, Interchecks will likely continue innovating to offer optimal protection and reliability for check-based payments.
