SCAN Check Verification and Collection Service

Wal-Mart, Home Depot, Kmart, Nordstrom, and thousands of other retailers have been using the Shared Check Authorization Network (SCAN) since 1984 to stop bad check writers. With over 7 million check transactions processed every day, SCAN is the most widely used verification service in the nation. Now you, as a small, medium, or large sized retailer are welcome to utilize the exact same database as the national retailers.

When you join the SCAN network, you have access to the largest database of known bad check writers in existence - over 10 million unique records from over 77,000 locations across the United States. Every night, over 535 national retail chains contribute data about customers that have bounced checks in their stores to one central place, the SCAN database. Over 150,000 updates occur every night to ensure that the database is as accurate as possible. The SCAN database also collects information from ChexSystems, which gathers information from 80% of all U.S. banking institutions about "closed for cause" accounts. Wouldn't it be great if you could reduce your risk of accepting a bad check by knowing that your customer has already bounced a check someplace else and has not made good on repaying the merchant.

How the SCAN Process Works

When accepting a check at the point-of-sale, SCAN customers use a check reader or designate one of the keys from your existing credit card terminal or electronic cash register (ECR) to dial into the database to verify that the check writer is not in the database. Your check reader will either read or you will manually key in the Full MICR (check writer's bank routing and account numbers) plus the driver's license number and state code. In as little as 8 to 10 seconds, SCAN responds with an "accept" or "decline" message. If the check is accepted, the sale completes as usual; if declined, the merchant requests another form of payment. In addition, you will have a supply of "decline" pads which allows you to tear of a little piece of paper to give to the customer with a toll-free number for the customer to call themselves to find out the reason for the decline and how they can resolve the problem. You are not involved in this process. In addition, toll-free technical support is available to you when questions might arise from either you or your employees.

If you are a customer who wrote a check and it was declined by the merchant please contact SCAN at 800-262-7771 for assistance.

Collection and Recovery Service

Because SCAN cannot catch every bad check writer, you have included in your service no-cost collection using sophisticated electronic re-presentment through a company called CHEXcollect. By using smart database and consumer account monitoring technology, CHEXcollect can pinpoint exactly when is the best time to recover your money and automatically re-presents these bounced checks through the banking industry's electronic ACH network. If successful, you will receive 100% of the principal of NSF checks that CHEXcollect collects, with the bad check writer paying the legal state authorized collection fee (usually $15 to $25) to CHEXcollect. As an added free benefit you are able to monitor this process through detailed reports on a 24-hour web site.

What is my Cost for SCAN?

This is very little for the peace of mind of knowing that you are reducing your up front chances of accepting a bad check by as much as 80%. Just seeing the provided SCAN decal on your door or by your register will discourage a bad check writer from doing it in your store. Next time you walk into Kmart you will notice that they have the SCAN decal on their front door. Turning down just one potential bad check per month or quarter can justify the cost of this service for an entire year.