As we all know, checks wonít be going the way of the Dodo Bird anytime soon. In fact, as you know from the 1998 Check Study, checks will continue to increase in volume until at least the year 2010. Companies know that an increase in checks can mean an increase in profits for their company, and, as an ISO, it can mean an increase in revenue for you as well.
One such company that recognizes the value of checks is VeriChek, a medium-sized aggressive growth check guarantee/collection company based in Abilene, TX. This 15-employee organization was founded in 1995 when VeriChek bought the assets, database and equipment of an existing company. There are four principle stockholders who are active in managing VeriChek. and, the company is currently recruiting ISOs.
The founders started VeriChek because they felt there were areas for improvement in the areas of service and competition of the guarantee/collection industry. In the past four years, VeriChek has created a substantial list of clients and that client base remains stable with an attrition rate of less than .002% per year. The low attrition rate is a result of the companyís two goals:
1. Reduce and collect returned checks
2. Retain the debtor as a customer of the merchant.
VeriChekís business was built on grocery chains, convenience stores, and restaurant clients and the company still accepts business from small and large volume merchants.
VeriChek Verifications/Collections
VeriChekís verification can be free. Yes, you read that right, free. The verification call is also toll-free and in many cases, VeriChek can provide their verification services through the merchantís existing credit card terminal. But, what if a merchant doesnít have equipment? Well, in many cases, the equipment is also free. Yes, you read that right too. If the merchant has adequate check return volume, he or she gets a free loaner terminal for the life of the account. And itís not some fly by night terminalóweíre talking VeriFone, Hypercom, IVI Checkmate. If the merchant does not have equipment and does not have adequate volume, equipment is available for as little as $80. Also, VeriChek does not charge a statement fee, report fee, or an application fee.
VeriChek verifies a check writerís information against a negative database by Driverís License or ID Number, Personal Bank Account Number, Military ID, Social Security Number, or Payroll Account Number. Verifications are returned in 6 to 15 seconds. When dialing, transmitting and receiving times are taken out of the equation, the actual verification is processed in less than one half second.
Too good to be true? How can they do it? Because they donít make the money from the merchant, they make the money from the bad check fees. VeriChek charges state regulated fees to the check writer, not the merchant. Currently, VeriChek verifies approximately $17.6 million per month in checks. They work closed accounts, forgeries, and stop payments. In the case of forgeries, VeriChek protects the check for preservation of fingerprints, attempts to obtain an Affidavit of Forgery, files a case with the police and/or provides the merchant with copies of all paperwork.
Other VeriChek Services
VeriChek also offers more than collection. They offer check-guarantee, electronic debit, and truncation. The guarantee program fees vary depending on the type of account, and number of locations, etc.
If a merchant doesnít think guarantee meets his needs, he can go with truncation, or a combination of truncation, guarantee, and collection. You, as an ISO, can choose to sign the account, take the commission, and walk away; VeriChek handles the rest. Or, if you want to receive residuals for the lifetime of the account, you can choose that option. The flexible compensation plans are one tool that VeriChek uses to hire qualified ISOs.
The Opportunity
VeriChek has been experiencing remarkable growth. They are currently adding approximately two states per quarter (see text box for current licensed states).
Just call if you have locations in states that are not listed and they will provide you with a completion date for that state.
Larry Zastrow, National Sales Manager for VeriChek, wants ISOs to know that the company is flexible. VeriChek strives to keep customers happy, and they encourage ISOs to call them if they have a particular location that has special needs and they will work together to figure out the best solution for that company.
VeriChek is currently looking for ISOs nationwide. No training is necessary and the company provides all the necessary sales materials. Interested? Call Larry Zastrow at (888) 676-7400, or go to www.verichek.com on the Internet, to check out the company and opportunities.
