New Fingerprint Scanner Catches Check Bouncers in the Act
It's hard to imagine your local mom-and-pop food market being a leader in technological innovation, but that's exactly what's happening in grocery, convenience and check-cashing stores throughout the country. These merchants have been among the fastest to adopt a new check fraud prevention technology called Biometric identification.
Biometric check cashing systems use a special scanner to electronically capture a customer's fingerprint, store a template of the image, and then record check transactions associated with that person. The system verifies a person's identity and confirms their check cashing history. If a customer has a negative check cashing history, the clerk can cancel the transaction, saving the store money that would have otherwise been lost on a fraudulent transaction. No other ID is needed, so personal information is kept private and not shared.
Herdon, Va.-based BioPay, Inc., has already verified more one million financial transactions with its Paycheck SecureSM biometric identification system. A BioPay merchant at one location is immediately alerted to a fraudulent check from any other BioPay merchant in the country. And, merchants have access to a national commercial electronic fingerprint database to help identify fraud artists and check bouncers.
"We believe - and have proven - that consumers value the convenience and security of using biometrics, and businesses are taking note," said Tim Robinson, president of BioPay.
Check cashing services are a profitable business for merchants. The Federal Reserve Bank of Chicago estimates that over 180 million checks, totaling $55 billion, flow annually through the check cashing industry. However, check fraud is increasing 2.5 percent annually. Businesses hope that Biometrics will help eliminate the risk of check fraud.
BioPay systems have been rolled out in 22 states, at more than 300 merchants, with one or more lanes or locations. For more information, visit BioPay.com.
Source: BioPay
