Negative Check Database
Some check verification services will use a Negative Check Database. A Negative Check Database contains a comprehensive list of people who either wrote a bad check at a retail location, paid a bill with a check that was returned, also called "bouncing a check."
Historical data check verification services that use a national network with a negative check database can be difficult for consumers and businesses to remove themselves from once they get on, even is case of errors.
These databases are often bundled with "check guarantee" services like ChexSystems. This leaves companies that use historical data reliant systems in a position of sometimes denying customers that have a good valid check, but managed to get on the negative check database.
This type of verification is usually linked to the person writing the check and runs the verification using their drivers license number. This type of information is a valuable tool for loss prevention because it identifies historically or habitual check bouncers who are more likely to re-offend.
Use of this type of system can also cause customer service issues between retailers and their own customers, because it bases history that could stretch back up to 10 years or more.
Read more about this topic: Check Verification Service
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