Why Won't My Checks Scan?

Businesses are more and more realizing that checks did not completely die out. In fact, some businesses are still getting as much as 60% of their income from checks. While those may be rare, there is still a place in this old world for the custom bank note. I spend a certain amount of time on this in What About Checks? and Safer Checks, Really? However, for those of you scanning checks now, here are some answers to the questions that I have been getting. Please remember, that this is not an exhaustive list, but merely a basic set of facts to start from.

Custom Checks
One of the new reasons checks won't scan or get declined popping up these days is the use of custom checks. Everybody gets these ads for vanity checks and I have no issue with wanting Scooby Doo or Justice League/ Super Friends style checks. The problem arises in the fact that these tend to be of lesser quality than those you get from your bank. That is because your bank wants to double-down make sure your checks go through so they purchase from very high quality check makers like Harland. You see a check has a magnetic ink number on the bottom. Check readers known as MICR (mag ink character recognition, pronounced: "micker") readers basically work like a VCR reading the mag ink numbers. If those are not done well, the check will either not scan or simply get declined.

Number Scratch
Sometimes these mag ink numbers get drawn or scribbled through when one signs their name. Depending on how hard your customer writes their name, the quality of the check (such as a vanity check), or whether a ball point pen's pressure scratches off part of the ink can affect the check's viability. Suggest the customer signs a check not touching the number with their signature.

Checking History
Your customer's check writing history will affect whether or not a check goes through. Now this speaks more to Check Guarantee and does not affect Remote Deposit at all. Remember Remote Deposit is the same as going to the bank without physically going there at all. However, Guarantee is asking for the ISO or Processor to front you the money and collect the payment from the check writer. That means risk. The customer might only be writing a $10 check against a bank account with $10,000 in it, but if they have a history of bouncing checks, it will most likely be declined. If that sounds like a credit history, it is. It's simply using paper instead of plastic and you are not even at the grocery store.

Not Enough Money
OK, I had to say it. The main reason we all know a check won't scan or get an approval is how much they have in the bank. This is a direct check and they will look.

These are still just the basic things support systems look for when a business is having trouble scanning checks. There are always more. If you think your business has seen a unique situation, I'd love to hear it. Post your query and maybe we'll send you a free ad that we get every week in a Value Pack for some checks with your favorite cartoon on it.