Telecheck Group.

An application has been made to incorporate a limited liability company to provide cheque guarantee or authorisation services to merchants.

The new company, Bermuda Financial Network Ltd., is to be run by two Bermudians who have been involved with card services in local banks.

Mr. Alvin T. Wilson and Mr. Dalzell C. Tucker also intend to assist merchants in dealing with the clearance, handling and administration of cheques and other financial instruments, with service projected for the new year and could also be involved in debt collection.

The new firm would also be available for consultancy and management services in relation to financial services and products.

The new company is able to capitalise on technological advances in the required equipment since the Telecheck service ended, providing open architecture and faster more flexible service.

A spokesman said the plan was still in its early stages and banks, merchants and the Chamber of Commerce would first be consulted in anticipation of a pilot programme to smooth out any difficulties.

He added that the system to be used is in operation in regions in the US. The fee structure is intended to be flexible, based on a per transaction rate or percentage of volume.