Partial Payment Gets Better
We assume that if you are selling Check Guarantee services, then you are looking at the Guarantee Service Agreements of those check companies that you are competing with, in your marketplace.
Within the industry it has been a common practice to exclude the Guarantee of checks that are in partial payment of Goods or Services (this also means reject claims which are based on Partial Payment).
Based on information provided by CrossCheck Inc., Partial Payment coverage, which is available to CrossCheck merchants, represents, on average, a 13 basis point Gross Loss ratio across all industries.
This information can be interpreted in the following ways:
Merchants that are not offered Partial Payment coverage versus those who are, should have a 13 basis point price differential. You should be watching that you have an apples and apples comparison when you are pricing accounts with a Partial Payment need.
Assuming that the competitor doesn't offer Partial Payment coverage (and many do not), a CrossCheck price quote with Partial Payment coverage is already 13 points lower than the competition, when the rate is equal.
Across the board Partial Payment coverage is available from CrossCheck at 2 cents a transaction, and we suggest that you not forget to use this pricing and product differential, to your advantage.
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