Local and national retailers

Local and national retailers are installing electronic cash registers (ECR) containing integrated check guarantee/credit card authorization data and voice capabilities. Check guarantee transactions are routed by a store (area) local switch to check guarantee data networks or, in the case of national retailers, via retail host networks to check guarantee vendor data networks.

b. Truck Service Centers

A highly successful funds verification/check guarantee service is offered in the transportation sector. In this instance, the independent trucker is the consumer and the authorized truck service center is the retailer.

The funds verification/check guarantee system for truck service centers is illustrated in Exhibit 111-14. There are approximately 8,000 trucking companies which for the most part consign shipments to over 200,000 independent truckers in the United States.

The basic transaction starts when the trucker purchases food, diesel, and services from a truck stop. The truck stop manager operates as an independent agent of the check guarantee services offerer, receiving a portion of the transaction fee. The authorized service center calls the check guarantee center.

The data entry operator contacts the trucking company dispatcher for verification for that driver at that point in his route. The data entry operator enters the verification into the host processor which verifies the trucking company’s credit against a data base of drivers and trucking companies.

The guarantee is forwarded by the data entry operator and increasingly, more frequently, by a voice response unit to the authorized service center which creates a check draft payable to the driver, endorsed to the service center.



Total electronic credit card authorization is heavily dependent upon data communication costs. The response time is five seconds or less.

Revising rate structures could well increase the cost of all electronic transactions by as much as three cents as deregulation takes place in the communications industry.


Check verification/guarantee costs depend, as shown in Exhibit 111-17, upon the types of services offered.

Check verification services alert the retailer to bad checks and potentially marginal ones, but leave the credit decision in the hands of the retailer. Check verification services are generally regional or local in nature and are contracted for primarily between the services offerer and the retailer directly.

Check verification services are priced according to the type of verification utilized and on transaction volume. Check verification costs run somewhat higher (20-30%) than corresponding credit card authorization costs.

There are no interchange networks involved (except occasional interchange with credit card networks).

Transaction volume for check verification is less than one-tenth credit card authorization transaction volume.

Check guarantee services are primarily offered to retailers directly. Even when offered to financial institutions, the services offerer underwrites check losses.

Financial institutions

The portion of the discount rate that financial institutions charge retailers for the loss liability on credit card transactions is related to the authorization system (paper, voice, authorization terminals, ECR, etc.) selected by the retailer. Financial institutions frequently sell or lease terminals at highly attractive rates in order to benefit from the reduction in settlement fees offered by MasterCard (1.55% versus 1.7%) and Visa (1% versus 1.64%) when all credit card transactions are authorized through electronic methods.

INPUT’S assessment of credit card authorization costs are as shown in Exhibit 111-16. The costs represent a consensus of the vendors interviewed, expert opinion, and industry data. The costs were used to determine information systems expenditures in Section B and in the Forecast in Section C above. Special no credit check services from NY Loans site.

Voice response, which is operator dependent, is of course the most expensive. It is not likely to be significantly affected by communication industry deregulation. Voice credit card authorization is also the slowest method of services delivery.

Audio response replaces the operator for half of the authorization transaction and reduces response time by 25-40%.


The pricing of credit card authorization services is usually bundled with the package of credit card services offered by financial institutions to retailers.

Bundled services include:

Credit card application evaluation and processing.

Plastic card issuance.

Credit transaction authorization.

Credit card transaction balancing, clearance, and settlement.
Statement preparaion, payment, and collection.

• The incentives to the retailer are increased sales (through customer convenience), advertising, elimination of handling accounts receivable and, to a large extent, loss liability.

• Financial institutions charge a percentage (2-6%) of the transaction dollar amount. The percentage is a function of dollar volume, number of transactions, and type of retail establishment.

• Few financial institutions provide the entire range of credit card services directly to retailers. Some contract virtually all of the program to one or more participating vendors.

Visa/MasterCard data networks are used for transaction interchange and are a primary source for settlement.

Service centers

The agent contacts the data entry operator at the guarantee center who enters the card number, amount, and agent identification on the host processor. The vendor acts as an agent for a credit card issuing financial institution.

The transaction is sent to the issuing financial institution. If the account is not held there, the transaction is switched via a credit card interchange network to the appropriate credit card financial institution. Card authorization results in check guarantee approval being returned to the leisure time services center either by the data entry operator or increasingly by voice response units.

The service center creates a check guarantee by the vendor, payable to the consumer, endorsed to and cashed by the service center. Fees for the service are approximately k% of the check amount— I % to the service center operator, 1% to the credit card issuing financial institution, and 2% to the funds verification/check guarantee services offerer.

At settlement, funds (including net fees) are transferred from the credit card financial institution to the check guarantee services offerer’s account.

Latest service offerings include installation of POS terminals which provide for electronic authorization/check guarantee transactions. The terminal incorporates a credit card stip reader and a check printer. Electronic transactions are completed in one to two minutes, including check endorsement, as opposed to a range of five to eight minutes for voice-check guarantee.

Leisure Time Service Centers

Another highly successful vertical market application of check guarantee is for the leisure time industry. The funds verification/check guarantee system for the leisure time industry is illustrated in Exhibit 111-15.

The guarantee service provided is to guarantee a check issued by the vendor based on major credit card authorization. Independent agents of the vendor located at gambling casinos, race tracks, and other leisure time operations provide retailer services to consumers wanting funds.

Computer services vendors

Computer services vendors are a primary source of voice and audio response authorization services.

Bank card associations and computer services vendors are primary sources of credit card issuance, processing, statement preparation, collection, and account maintenance.

Unbundling is occurring both in services rendered to financial institutions and to (at least) large retailers. Entry of VAN vendors and large retailers offering their national VANs for financial transaction processing into the marketplace is expected to accelerate the unbundling process.


Owner/President – Danny Howard

Danny joined Paul Davis Restoration and Remodeling in Louisville as a Project Manager. Prior to joining the restoration industry, Mr. Howard has 10 years of experience in the floor covering industry.

In 1987 Mr. Howard started his own franchise, serving surrounding counties such as Fayette, Jessamine, Woodford, Scott, Madison, Garrard, Boyle, Mercer, Franklin, and Anderson County. The office is located at 230 Industry Parkway in Nicholasville.

Mr. Howard started services such as emergency mitigation, restoration and remodeling, by working closely with insurance agents, adjusters, and property owners. In doing so, Paul Davis Restoration and Remodeling of Lexington has grown into a team of office administrators, project managers, mitigation specialists, carpenters, and certified cleaning technicians for water, smoke and fire damage.

Mr. Howard is certified through IICRC for Wtr, Asd, and Amrt certified instructor for CE classes in Kentucky.

Mr. Howard’s goal is to provide the best service in the industry to the people of central Kentucky when disaster hits.

For more information about Paul Davis Restoration please visit the company’s website atwww.pdremodel.com and www.pdrestoration.com

General Manager – Phil Ogden

Phil holds a Bachelor of Science degree in Business Administration with an emphasis in Finance from Auburn University in Auburn, AL.Phil has over eighteen years of operations and management experience having operated his own tire and auto parts franchise for twelve years prior to relocating to the Lexington area.

Phil joined Paul Davis in 2006 as the Office Manager and has been the General Manager since 2008. Phil is IICRC certified in Water Damage Restoration, Fire and Smoke Restoration, and Applied Structural Drying. In addition to these certifications, Phil has also successfully completed Marketing Training, Job Cost Accounting Training, Associate Training, and General Managers Training at our corporate training facility in Jacksonville, FL.

Associate/Project Manager -Joe Lucchese

Joe is a veteran project manager with 20+ years of reconstruction experience with Paul Davis Restoration & Remodeling. Joe is a highly regarded associate and carries many company wide awards for his continued outstanding customer care, dedication and timely delivery of each project.

Joe estimates and closely supervises each and every one of his projects with high expectations of the quality of work each individual turns out for every trade involved. In doing so, he has built a team of outstanding, loyal subcontractors who have worked with him for many years.

Joe’s experience and knowledge of the construction industry proves to be a good resource to those who are just learning about the industry.

Mitigation Associate – Owen Bottom

Owen joined Paul Davis Restoration in 2002 as a Mitigation Technician, his strong work ethic and dedication to the company allowed him to be promoted to Mitigation Associate.

Owen oversees and supervises all water damage claims for the company; as well as estimating each project, working with property owners and adjusters. He holds several certifications for WTR, ASD, CCT, RRT, and is a certified mold technician. Owen is also on the journeyman water mitigation team, he travels to other surrounding counties and other states to assist areas that have been affected by a disaster.

Owen hopes to one day earn a Masters in Water Damage Mitigation.

In Owen’s spare time he enjoys remodeling his own home, spending time with his family, watching Science Fiction movies, and getting together with friends.

Associate/Project Manager-Jeremy Bailey

Jeremy is an associate with multiple years of experience in all facets of Business Management,Product Development, providing sales and support while facilitating strategies for growth.

He is an enthusiastic individual with solid, professional standards. He is adept in business and management principles, involved in strategic planning, resource allocation, leadership technique, production methods and coordination of people and resources. He has received national recognition for his company-wide excellence.

Jeremy achieved his Associate Degree in Science,Bachelor in Business Management and Masters of Science Information Systems. He has received The Institute of Inspection Cleaning and Restoration Certification (IICRC) in Fire and Smoke Restoration, and Water Damage Restoration.

Jeremy is currently a member of the International Honor Society Beta Gamma Sigma, Honorary Pinnacle member, and an active member within the Lexington community.

JCA -Sharon Lucchese

Sharon Lucchesse has been with Paul Davis Restoration and Remodeling since 2002. She keeps a close eye on the financial end of the business to ensure that everything is running efficiently. Sharon greets every customer with a smile on her face, and adds professionalism and care to the financial side of each project.

Photo unavailable at this time Water Mitigation Technician -Juan Pellayo

Contents Associate – Julie Head McChord

Julie is the newest member of the Paul Davis Team and is certified in Fire and Smoke Restoation, Odor Control and EXPORTA. With over 15 years of experience in communications and a Bachelors in the Arts from the University of Kentucky she will be an asset to our company.

Fun Facts about Julie: Trained for and Completed a Triathalon, Graduate of the Citizens of FBI Academy, Volunteered for the Lexington Police Department/Robbery and Homicide Division 2008-2010, Co-Chair for the Jesus Prom for the last 10 years that caters to the mentally and physically challenged men and woman of KY and last but not least she has an adorable 6 year old little girl.

Paul Davis Mascot- Charleston

This 4 year old Malti-poo provides moral support to our Paul Davis Crew. He has won the hearts of all our staff and clients.

All you need is a Beggin Strip for this little guy and he’s all yours

Check guarantee services vendor

The check is guaranteed by the check guarantee services vendor. The authorized service center deposits the check, receiving funds from the check guarantee vendor.

The check guarantee vendor receives funds plus service charges ranging from 2-6% from the trucking company. For fleet operations truckers are provided with a pre-coded set of checks for the trip. The checks can be guaranteed directly by the check guarantee center, reducing response time from five minutes to less than one minute.

Latest service offerings include electronic verification/guarantee transactions. Terminals with modems and attached check printers permit verification/check guarantee transactions to be accomplished in well under one minute.

Data terminals utilized by trucking company dispatchers enter driver/route/funds allocation in the host processor data base at the verification/guarantee operations center.

Plastic cards are used for fleet fuel purchases— further speeding up the check guarantee transaction. Transaction data is used or creating a fuel price data base highlighting the most economic place to buy diesel in a given area.