Definitions for "Check Guarantee"
A service that guarantees check payment to a merchant up to a specified amount. However, merchants are required to perform correct authorization procedures.
A service (commonly offered to merchants) guaranteeing that a checkwriter has sufficient funds on deposit to cover the payment. For a fee, a check guarantee service assumes collections risk should checks be returned.
A service that guarantees payment on each check presented provided that the merchant follows correct procedures in accepting the check. The guarantee service collects any returned item and the merchant typically follows a strict set of procedures. See also, Check Verification.