What is negative and positive check verification?
It’s verifying checks against a negative and/or positive check database. A “negative” database is created by merchants and collection agencies who reported negative information about a check presented to them as either NSF, account closed, stop pay, or frozen, for example. The account in question stays in the database until the customer pays the merchant or collection agency. When the customer pays, the reporting party notifies the database that the item has been paid, and the item is removed from the database. A “Positive” check verification is created by participating merchants who supply daily data to the database on all the checks they’ve received. If the database has a history of “seeing” that check account being reported over and over with no negative history, then the account is listed in its positive database.
