TransUnion Acquires Cheque Guarantee Services of South Africa

South Africa’s fight against check fraud has been significantly enhanced by TransUnion’s acquisition of Cheque Guarantee Services (CGS), the Chicago-based company announced today. Terms of the deal were not disclosed.

The merged operation, TransUnion Cheque Guarantee Services, draws on TransUnion’s business intelligence capabilities and a unique high-tech system of check transaction analysis and tracking developed by CGS, a leading South African check verification company, to assist South African retailers in managing their check risk more effectively.

“Whether it’s alone, or through strategic partnerships or acquisitions, TransUnion is continually looking for ways to leverage its global experience in the development and deployment of risk management solutions,” said Ralph Sorice, president of TransUnion International. “This acquisition brings together South Africa’s most effective verification parties – CGS and Vericheck – under the TransUnion banner, making it easier and more cost-effective for businesses to accept check payments with confidence.”

With TransUnion Cheque Guarantee Services, the risk of payment by check is assessed and the transaction is approved or declined. This process occurs in exactly the same way as a credit card or debit card transaction is approved or rejected – which typically takes less than 20 seconds.

Although some South African retailers may perceive a greater risk associated with checks, they nevertheless remain a safer and more convenient payment method than cash for all parties involved in a transaction. The combined business intelligence and technology platforms of TransUnion and CGS will make passing off bad checks on unsuspecting retailers that much more difficult.

TransUnion plays a pivotal role in the financial sector of South Africa’s marketplace. In addition to business intelligence solutions, TransUnion provides credit reports on individuals and companies according to the needs of its customer subscribers to assist them in reducing and managing their credit risks. Customers include banks, auto and home finance companies, credit card issuers, as well as all manner of retailers and businesses in all sectors of the economy.