Your Most Frequently Asked Questions
Is there a charge to the merchant? There is NO CHARGE to the merchant for electronic check recovery or for our traditional collection service.
How do you pay for this service? We do not charge the merchant because we electronically collect a modest state allowed fee from those who write bad checks.
What is RCK? RCK refers to re-presented check entries or the process of resubmitting checks electronically through the Automated Clearing House (ACH) network.
Is this process legal? Yes, the National Automated Clearing House Association (NACHA) developed the banking rules in 1998 that allow us to re-present NSF checks electronically. NACHA is a non-profit agency authorized by the U.S. Department of Treasury to oversee such banking transactions. See www.nacha.org.
What are the advantages to the merchant? The advantages are numerous. First, we recover more funds because our recovery rate is the highest in the industry. We can recover out-of-state checks just as easily as in-state because we can electronically debit accounts anywhere in the nation. We also recover funds sooner than conventional collection methods AND we deposit them directly into your account. RCK will reduce collection costs for the merchant by eliminating the bank redeposit fees associated with the traditional second manual re-presentment. Whether you use a collection agency or try to collect on your own, using RCK will eliminate this unpleasant task. In short, we recover more of your funds and do it faster than traditional collection methods. For more advantages, CLICK HERE.
What has been the consumers reaction to electronic check recovery? For those who write bad checks, the reaction is very favorable. It's less embarrassing. It avoids the threatening or intimidating encounter with a collection agent. It also avoids a bad check rating assessed by manual collection agencies. It also saves time since there is no need for them to make a trip to buy a cashier's check or money order and then deliver payment to the merchant or collection agent. It's been a real convenience for consumers.
What's the difference between processing checks electronically vs. the old way? In short, speed and cost. Depending upon the amount of returned items you have annually, the bottom line impact could be significant. Plus, with our check-processing center we provid frequent emailed reports and secure access to online reports. The electronic process is also less intrusive for the check writer.
How often will I get paid recovered funds? We reimburse recovered funds twice each month (middle and end of the month). Plus you will receive an itemized statement providing details on all checks recovered and a summary of rebates.
What is the rate of recovery for this new electronic check recovery method? We have the highest NSF check recovery rate in the industry at 70-85% on average. Conventional collection methods cannot claim this success rate, if they are honest.
How do you achieve such a high check recovery rate? The key is that we are now allowed three (3) presentments (the one that initially bounced, then two more electronic re-presentments). There is no need to locate the bad check writer. With the routing and bank accounts numbers we can retrieve your funds through the ACH system. NACHA allows two electronic re-presentments. This dramatically increases our success rate of recoverying funds.
What happens to checks not recovered electronically? Although we specialize in the collection of NSF checks electronically, we can collect non-NSF checks (stop payment, closed account, etc.) using traditional manual collection methods, like letters and phone calls.
How are the NSF checks sent to your local processor? You sign a bank release form that we file with your financial institution on your behalf. This document instructs the bank to mail all returned checks to our check-processing center. It also asks them to not re-present checks manually.
What types of checks can be represented? Check that indicates on the face that it was returned due to "Not Sufficient Funds," or "NSF", a "Unrecovered Funds" or comparable language is eligible for RCK. All other non-NSF checks (stop payment, closed account, forgery, etc.) can be processed by our secondary collection agency using traditional collection methods.
Is there a dollar limit on checks that can be recovered? Yes, checks with a face value of $2,500 or less may be processed.
How many times can the merchant re-present an item? A total of three (3) presentments are allowed. In addition to the initial manual presentment, the RCK entry can be re-presented twice.
What must the merchant do to inform the customer? We work with you to notify the parents prior to debiting their account for the face value of the check and a returned check fee. As your consultant and account manager, we provide simple and convenient suggestions for accomplishing this task.
Is there a time limit on checks that can be re-presented? Yes, each RCK entry has a time limit of 180 days from the date of the check.
Why should the merchant not allow the bank to redeposit the NSF checks? Cost and timing -- Most banks charge their account holders in the range of $3 - $8 to redeposit a NSF check. Rather, there is no charge to redeposit the check electronically AND the electronic process is far more likely to be successful due to the speed, priority, and timing of the representment.
What if I have a question not answered or want more information?
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How do I sign up and get started?
We will be delighted to help. Go to CONTACT US to reach us by email, by phone, by locating the consultant in your area, or by submitting an online form requesting additional information.
