When you're selling check guarantee or verification it may help you to be able to provide some free advice to your merchants; advice that may save them some headaches and some money.
Many banks and credit unions now have "check ink" and "check color" policies which pertain to dark colored checks and checks written in ink colors other than blue or black. For example, some financial institutions have policies, similar to the following:
All red or dark colored checks will not be accepted for immediate encashment or credit. Any such item will be accepted on an "On Collection" basis only and will be subject to customary collection fees.
Checks written using red or light colored "hi-liter" type inks will also be refused for immediate credit and accepted on a "Collection Only" basis.
The reason for the policies is simple: these types of checks make it difficult for modern banking equipment to read the check accurately. Also, it is harder to image these items for check safekeeping; financial institutions are required to keep images of checks if they are not returned to the consumer.
If your merchants wish to avoid returned check or collection fees, they might be wise to accept only lighter colored checks made out in blue or black ink.
