Write the amount on the check stub and tear up the check. We will process your payment and a canceled check will show up in your next bank statement. After the telemarketer takes the information from the customer, the data is transmitted to a service provider that uses laser printers, Magnetic Ink Character Recognition toner and check stock to create a duplicate of each consumer's check, which is fully negotiable. The checks, also called pre-authorized drafts, are batched and delivered to the client or the client's bank. The service provider usually verifies the check by running the checking account against a database to find individuals who write bad checks.
Fees are much smaller in large volume accounts.
Large businesses have been quick to sign up for the new service. Many users store a taped verification of the phone call with all the information obtained in the call. In general they seem surprisingly good. Most of the pledgers were seniors. Many selected payment by checks over the phone because of the novelty of the idea.