Check recovery and verification services offer systems that allow vendors to scan customer checks into a database that will quickly tell them whether a customer has written bad checks in the past or has written an inordinate amount of checks in the past 24 hours. Bad checks are often written by customers who have a lack of funds in their accounts, and the attempted processing of such checks can cause the check to bounce and incur fees from the bank.
A check recovery agency collects information electronically from customers who write checks so that vendors and businesses can know whether or not a customer has written bad checks in the past or can be relied upon for payment. Once a check's information has been collected and entered into an agency's system, the writer of that check is not cleared until the agency's server is updated with information noting the payment has been successfully processed. These services can be extremely time saving, as they eliminate the need for business managers to go through the process of attempting to deposit a bad check with the bank, only to have it bounce and incur fees. Although customer account information is obtained and transferred online, these recovery and verification systems use intense security and encryption methods to protect that information and ensure it doesn't get stolen.
If a check comes back as having denied payment, some check recovery and verification agencies will pursue the writer, whether it be courteously in an attempt to collect, or legally through the judicial system.