|
|
| |
Riverdale Park, MD - January, 2001
Dumm's Market had a problem with its check cashing operations. The bad guys were using commonly available check printing software to print fake checks with the information from real businesses, and cashing them at Dumm's. The losses were biting into the profits, and required management to directly handle all check cashing operations. In the words of owner, Jim Spiropoulos "...we have not taken a single counterfeit check since we started using BioPay."
BioPay's electronic identification system is a full-featured fraud-control product with all of the bells and whistles. As Spiropoulos' customers say, "Your new high-tech system is cool." It consists of a computer, optical fingerprint reader, check MICR/magnetic stripe reader, and video camera. The way it works is simple: customers place their fingertip on the reader, their check is swiped through the MICR reader, the amount of the check is entered into the computer, and upon approval, the customer receives their cash.
A short enrollment process is required for first-time users. The customer places the index finger of each hand on the optical reader, swipes their driver's license through the magnetic strip reader, and has their photo taken by the video camera. Instead of objections to the fingerprint reader, Spiropoulos reports that, "the majority of our customers actually feel very positive about the system because they no longer have to produce IDs and feel an added sense of security because others can't cash their checks if they're lost or stolen." A customer's negative check transaction history is securely stored on a central database and available across the BioPay network.
Shared negative information gives merchants like Dumm's the added protection of not suffering losses from criminals who have presented fraudulent checks at any BioPay location. Furthermore, the system is a deterrent. It offers a frontline to fraud, driving the bad guys to take their business elsewhere... to check cashers not using BioPay.
Spiropoulos explains, "Just the other day a customer we'd never seen before was in the store wanting to cash a payroll check. We took his picture and entered his other information into the BioPay terminal. When we asked him to place his finger on the electronic fingerprint reader, he got very nervous, grabbed the check and left the store in a hurry. We think that instance clearly shows the deterrent power the system has. Without BioPay we probably would have cashed the check and been burned."
The BioPay electronic fingerprint identification system allows every clerk to accept checks without the need of management approval. Previously, Dumm's market turned away customers when a manager was unavailable, due to uncertainty about the validity of a check or customer. With BioPay, the identity of the customer is confirmed instantly, and the customer's check-cashing history is displayed on the screen. No judgment call is needed, which allows Dumm's to increase its business and prevent loyal customers from taking their business elsewhere. According to Spiropoulos, "The bottom line is that the system gives us a powerful tool for running our business."
|
|
|
|
|
 |
|
|
