Why background check pricing is unpredictable (and how to actually budget for it)

The right background check screenings provide businesses with information that supports confident, consistent hiring decisions.

But they also affect your bottom line.

But, while estimating background check costs for small business hiring can help you budget more accurately, the starting price you see may not always match the final cost. Understanding why can help you anticipate those differences and avoid surprises when the bill arrives.

You have your preferred candidate picked out, and you know what information you need to make a confident final hiring decision. Now, it's time to screen.

You review the background check pricing from a provider and check out what you get with each package. After careful consideration and a comparison of starting prices, you select an option and place your order. The screening process gets underway, the report arrives, and you make an informed decision.

Then you check the final invoice and find the price is higher than you expected. You're taken aback by the discrepancy. You wonder whether the background check provider charged you unnecessary fees or made a mistake.

These feelings are understandable. For small businesses, every hiring dollar counts. Uncertainty complicates budgeting, so you can't afford surprises in the final bill.

When the final cost is higher than the starting price, the difference may come from the screening itself, not the package price alone.

Several factors can affect the final cost, including passthrough fees tied to screening type and jurisdiction, changes in screening scope, and package add-ons. Understanding each can help you better anticipate what you’ll ultimately pay.

Passthrough fees are one of the most common reasons for discrepancies between estimated and final background check prices.

A passthrough fee is a fee that originates from the organization or agency that holds the records accessed during a screening.

These originators include state departments of motor vehicles (DMVs), state and local courts, and third-party databases.

The key distinction is where the cost originates. Provider-set fees cover the screening services the background check company offers, while passthrough fees come from the courts, agencies, or other record sources the provider must access to complete certain searches.

When you order a screening package, your background check provider may be assessed these fees for accessing records and databases. When applicable, the provider passes the fee along to you, and the amount is added to your screening package’s base price.

Not every background check will involve passthrough fees. They often occur with county-level criminal history and driving history (MVR) checks, but providers may charge them for other types of screenings as well.

If a complete screening requires a provider to access records in multiple jurisdictions, you may be charged multiple passthrough fees for a single check. For example, if a candidate's seven-year address history includes residences in three different counties, you might be charged three passthrough fees for a county criminal search. In this case, each fee comes from a different county.

Passthrough fees vary by jurisdiction because the court, agency, or database provider that maintains the records sets them. Your background check provider does not control the cost. If the provider adds any additional costs, they should make this clear in their pricing information. Providers that pass through the fees without any additions will typically highlight that there is "no markup."

Another factor that affects differences between actual and expected background check package pricing is scope shift. This occurs when your screening needs go beyond the package you select. Examples of scope shift include:

You want a criminal background check package, but a professional certification verification is also important for your open position. To meet both needs, you select a basic background check package and then order the certification as an add-on, increasing the base price.

Background check providers typically disclose a starting price for add-ons. Just like your base screening package, add-on searches may be subject to passthrough fees. In this example, the certifying organization's database platform could assess a flat fee added to your final invoice, along with the add-on price.

In some cases, you could spend more because your package choice doesn’t match your actual screening needs. Before choosing a package, consider which background checks make sense for the responsibilities and risks associated with the role. If you purchase a basic package and then need several add-ons, the combined cost may be higher than a package that already includes the screenings you need.

Some screenings may require records for more than one jurisdiction. For example, a candidate’s address or driving history may span multiple counties or states during the relevant look-back period. If completing the screening requires accessing records from multiple courts or agencies, additional passthrough fees may apply.

These costs can occur with screenings such as MVRs and county criminal searches, so the number of jurisdictions involved can also affect the final price.

Now that you understand what can cause background check costs to vary, you can take steps to budget for that variability. Here are some practical ways to better anticipate and prepare for the final cost of screenings you may need.

A realistic background check estimate generally includes three components: package price, add-ons, and estimated passthrough fees. Because package and add-on pricing can change, use Checkr’s current pricing page instead of figures published elsewhere.

About the author

Hayley Harrison began her career as a hiring manager at a mid-size regional bank in the Pittsburgh area. She now brings her experience and knowledge of hiring best practices to her work as a freelancer, helping employers refine and improve their processes.