How does check verification work?

The most common method of check verification uses check databases to analyze the history of checks written from a particular account and determine how likely they are to clear. Another verification method involves accessing the bank account the check is being written from and verifying the available funds.

In the United States, the only check verification services available are those that analyze check databases. Due to federal privacy laws that restrict access to bank accounts, systems that verify available funds in an account are not allowed in this country.

Most companies who verify checks charge a percentage of every check verified as a fee. Rates vary, but it is typically about 2 percent.