FREQUENTLY ASKED QUESTIONS
Is there a charge to the school district? There is NO CHARGE to the school district for electronic check recovery (RCK) or for our traditional collection service.
What do school clients say is the biggest advantage from using the service? Aside from the fact that the service is free, most clients enjoy the benefit of relieving staff from an unpleasant task in order to perform more important tasks. Our high reimbursement rate, rebate, and comprehensive reporting system are also very popular.
Who pays for this service? We do not charge the school district because we collect a modest state allowed fee from those who write bad checks. In most cases we pass along a portion of that fee to you in the form of a bonus rebate on top of the full face value for every recovered NSF check.
What is RCK? RCK refers to re-presented check 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 our school district? The advantages are numerous. The service is free and does not require budget approval. We add a bonus rebate to the face value of every recovered NSF check. Outsourcing the collection task will free your staff for more productive tasks. We recover more funds because our recovery rate is the highest in the industry because of the electronic process. Our methods are not intrusive, abrasive, or embarrassing for the check writer. We recover funds faster than conventional collection methods AND we deposit them directly into your account. Our reporting system is customer-friendly, easy to learn, prompt and comprehensive. In short, we recover more of your funds and do it faster than in-house collection methods.
What has been the consumers reaction to electronic check recovery? For those who write bad checks, the reaction is very favorable. Our collection methods are less embarrassing and less confrontational than traditional methods. The process avoids an intimidating or intrusive experience for both the check writer and for your staff. It also saves the check writer time since there is no need for them to make a trip to deliver payment.
What's the difference between processing checks electronically vs. the traditional collections? In short, improved speed, improved reimbursement rates, and reduction in staff resources. Regardless of your volume of bad checks, the bottom line impact can be significant. To keep you informed our processing center provides frequent emailed reports and secure access to online data, including an image of every check.
How often will we get paid recovered funds? We reimburse recovered funds every week via direct deposit. We can reimburse less frequently, but most clients prefer weekly. Plus you will receive an itemized emailed statement providing details on all checks recovered including a summary of rebates.
What is the rate of recovery for this new electronic check recovery method? Although not guaranteed, we have the among the highest NSF check recovery rate in the industry. For school district clients we often exceed a 90% reimbursement rate. Adding a generous rebate to the amount reimbursed can sometimes push your reimbursement rate to over 100%. School in-house collection methods cannot achieve this recovery rate in most cases.
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 speed and recovery rate.
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 our in-house staff to perform traditional manual collections, like letters and phone calls.
How are the NSF checks sent to your local processor? A representative from your school district signs a bank release form which 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 type of check can be represented? Checks that are stamped "Not Sufficient Funds," or "NSF", or "Unrecovered Funds" or comparable language are eligible for RCK. All other non-NSF checks (stop payment, closed account, forgery, etc.) can be processed by our in-house secondary collection team 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 electronically. The average face value of the checks is $30 for our school clients, so this is not prohibitive.
How many times can we re-present an item? A total of three (3) presentments are allowed. In addition to the initial manual presentment, the check can be re-presented twice electronically.
What must the school district do to inform the customer? We work with you to notify parents after your enrollment. As your consultant and account manager, we provide simple and convenient suggestions for accomplishing this.
Is there a time limit on checks that can be re-presented? Yes, we cannot electronically re-present an NSF check that is over 180 days old (from the date of the check).