Shared Check Authorization Network
Alright kiddo, so you know how when you go to the store with mommy or daddy and they pay with a check, the people at the store have to check to make sure there's enough money in the bank account for the check to go through?
Well, sometimes stores and other places that take checks use a special network to do this checking. It's called a shared check authorization network.
What that means is that lots of different stores and other places that take checks are all part of the same group. So when you write a check, the people at the store can talk to this group of places and see if you already wrote a check that bounced (which means there wasn't enough money in the bank account for it to go through) at another store.
If you did bounce a check before, the store can say "Uh-oh, we're not going to take this check because you didn't have enough money before."
This network helps stores and other places that take checks make sure they don't lose money because someone writes a check they can't actually pay for.
Well, sometimes stores and other places that take checks use a special network to do this checking. It's called a shared check authorization network.
What that means is that lots of different stores and other places that take checks are all part of the same group. So when you write a check, the people at the store can talk to this group of places and see if you already wrote a check that bounced (which means there wasn't enough money in the bank account for it to go through) at another store.
If you did bounce a check before, the store can say "Uh-oh, we're not going to take this check because you didn't have enough money before."
This network helps stores and other places that take checks make sure they don't lose money because someone writes a check they can't actually pay for.