What is Comdata?
Comdata is a leading financial and data transaction processor that specializes in providing payment solutions for companies. Founded in 1969 and headquartered in Brentwood, Tennessee, Comdata offers services related to fleet, virtual payments, toll management, and merchant point-of-sale.
Comdata works with over 30,000 businesses globally across various industries to provide customized payment solutions. Their offerings include issuing company-branded checks, virtual card accounts, corporate purchasing cards, and payroll cards to employees. Comdata processes over $135 billion in payment volume annually.
By partnering with Comdata, companies can optimize their B2B payments, reduce fraud, gain visibility into spend, and provide employees with flexible electronic payment options. Overall, Comdata aims to enable efficient, secure payment processes for organizations.
Why do companies use Comdata checks?
Companies use Comdata checks to streamline business-to-business (B2B) payments, control spending, and reduce fraud. Comdata provides electronic payment solutions that replace paper checks with virtual card numbers or ACH transfers (1). This allows companies to have more control and visibility over payments.
With Comdata, companies can set spending limits on virtual cards or ACH transfers to control costs. They gain access to detailed reporting on where money is being spent. Companies can also configure the payment terms or set an expiration date for each payment (2).
The use of electronic payments instead of paper checks also reduces the risk of fraud. There is less chance of forged signatures, altered amounts, or stolen checks. The virtual card numbers are one-time use and expire shortly after being issued (3).
Overall, Comdata’s electronic B2B payment solutions offer companies streamlined processes, better spend control, and reduced fraud risk compared to traditional paper check payments.
(1) https://www.comdata.com/resources/about-us/
(2) https://www.comdata.com/products-services/fleet-payments/
How to identify a Comdata check
Comdata checks will always be issued by Comdata and include the Comdata logo. The checks will have a Magnetic Ink Character Recognition (MICR) line at the bottom that includes important details about the check. Some key ways to identify a Comdata check include:
The Comdata logo and name – Comdata checks have the company’s logo, an orange roadrunner symbol, and name printed on the top or upper left corner. This helps confirm the check is officially from Comdata.
MICR line – All Comdata checks have a MICR line printed along the bottom edge that encodes the routing number, account number, and check number. The presence of a MICR line indicates it is a legitimate check.
Check numbering and format – Comdata assigns a unique check number to each check, printed in large font next to the dollar amount. The overall check layout and formatting is standardized for Comdata.
Security features – Comdata checks have security features like microprinting and security inks to prevent fraud. Examining the check closely reveals these indicators that verify authenticity.
Validating the Comdata check number
Comdata check numbers follow a standard format that can help indicate if a check is valid. The check number is typically 8-10 digits long and does not contain any letters or special characters.
There are a few ways to validate the check number on a Comdata check:
- Use a verification service like Telecheck to validate the check number, account number, and availability of funds. Telecheck offers an online verification system as well as an IVR phone system for check verification (Source).
- Log into your Comdata online account portal to verify the check number matches a valid check (Source).
- Call the issuer at 1-800-266-3282 to verify the check number, availability of funds, and other details. You will need to provide your Comdata account number and details from the check (Source).
Validating the check number directly with the issuer or a verification service can help minimize fraud and ensure the check is legitimate before accepting payment.
Verifying the Amount
One of the most important steps when validating a Comdata check is to verify that the amount matches the expected amount. Here are some tips for verifying the check amount:
- Match the check amount to an invoice, statement, receipt, or other documentation that states the expected payment amount. This ensures the payer has written the check for the correct total.
- Double check that the numerical amount matches the written amount. Errors can occur if these two amounts differ.
- Watch for alterations, erased amounts, or corrections which could indicate fraud. declines If the amount seems changed, contact the payer to confirm it.
Verifying the amount helps ensure you are depositing the expected funds. If the amount differs from what you anticipated receiving, further verification with the payer is recommended before depositing the Comdata check. Having documentation handy makes this amount confirmation easy. According to First Card Payments, numerical and written amounts should always match to demonstrate authenticity (https://www.firstcardpayments.com/how-to-verify-funds-on-a-check/).
Checking the Date
It’s important to check the date on a Comdata check before trying to cash or deposit it. The date indicates when the check can legally be processed. According to Sapling, a check becomes valid tender when signed, regardless of the date written on it. However, banks typically will not accept checks dated for the future.
Comdata checks include an issuance date printed on them showing when the check was generated. This is the earliest date the check can be cashed. There may also be an expiration date indicating when the check becomes void. Legally, banks are required to honor checks for 6 months according to Investopedia. But an older uncashed Comdata check could have been forgotten and may no longer be valid.
When cashing or depositing a Comdata check, compare the printed date to the handwritten date to ensure they match. Also verify the check is not stale dated by more than 6 months. Contact the issuer if there are any discrepancies or concerns about the check’s validity.
Inspecting the MICR line
The MICR line is the string of characters printed in magnetic ink at the bottom of the check that contains key details needed for automated check processing. According to Investopedia (https://www.investopedia.com/terms/m/magnetic-ink-character-recognition-line-micr.asp), the MICR line consists of three main components:
- The routing transit number – identifies the bank that issued the check
- The account number – identifies the account the check should be drawn on
- The check number – identifies the particular check
The characters in the MICR line allow the check to be quickly scanned and processed by automated equipment during check clearing and settlement. According to PostGrid (https://www.postgrid.com/micr-line-checks/), the MICR line must meet strict formatting standards set by the American National Standards Institute for the equipment to be able to read and process the check.
When verifying a Comdata check, inspecting the MICR line provides key details like the routing number, account number, and check number that you can cross-check against the printed information on the check to validate it is legitimate.
Looking for security features
Comdata checks contain several security features that help prevent fraud, such as watermarks, microprinting, and security inks. According to Deluxe, watermarks are images or designs embedded into the paper that are only visible when held up to light. For Comdata checks, the watermark depicts their logo. Microprinting involves tiny letters printed on the check background that are illegible to the naked eye. This makes it difficult for fraudsters to scan and replicate checks. Finally, security inks contain chemical additives that prevent alteration and erasure. Comdata uses special ink with solvent-sensitive toners that smear when erased.
When verifying a Comdata check, hold it up to the light to view the watermark. Use a magnifying glass to inspect the microprinting across the check background. Also check that key information like the payee name and amount do not appear altered or tampered with, which could suggest tampering of the security ink.
Contacting the Issuer
One of the best ways to verify a Comdata check is to contact Comdata directly. You can call Comdata’s customer service line at 1-800-COMDATA (1-800-266-3282) to speak with a representative. When you call, be prepared to provide the check number, amount, and any other identifying details printed on the check.
The Comdata representative can look up the check in their system and confirm whether it is valid and funds are available to cover the amount. This helps protect against potential fraud or insufficient funds. According to discussions on Apple’s forums, you may need to wait for Comdata to send a verification code to your phone when calling to authenticate the check (Source 1).
By calling Comdata directly, you can get real-time confirmation about the validity of the check before deciding to cash or deposit it. This helps minimize the risk of potential losses from fraudulent or bounced checks.
Cashing the Comdata check
There are a few options for cashing a Comdata check:
At the issuing bank – You can cash the check at the bank that issued the Comdata check, which will be printed on the check. The bank will be able to verify the check directly. This is often the easiest method.
At a retail store – Many major retail stores like Walmart 1 will cash Comdata checks, up to certain limits. They will call to verify the check. Make sure to call ahead to confirm the store will cash Comdata checks.
Mobile deposit – If you have a smartphone, you may be able to deposit the Comdata check via your banking app’s mobile deposit feature. The bank will still verify the check 2 before crediting your account.
Overall, cashing a legitimate Comdata check is a straightforward process as long as you follow the proper verification steps. Going to the issuing bank or a major retail store are reliable options.