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ELECTRONIC REPRESENTMENT
The Solution to the NSF Check Problem for Retail Merchants
Revolutionary New NSF Check Processing Procedures
As of September 18, 1998, a new set of NACHA
(National Automated Clearing House Association) Rules has defined the
procedure, referred to as RCK (Represented Checks), for transmitting
NSF checks through the ACH (Automated Clearing House) network. These
transactions are governed under the legal framework of the Uniform Commercial
Code (UCC), Federal Reserve Regulation CC, and the NACHA Operating Rules,
not Regulation E and the Electronic Fund Transfer Act.
Electronic Representment is a new process that has revolutionized NSF
(Non-Sufficient Fund) check recovery by converting the NSF paper check
processing into an electronic transaction and debiting the check writer's
account for the amount of the check and the collection fee. Upon informing
the check writer of this process at the point of sale or on consumer
invoices, and obtaining their initials on a short verbiage-to be stamped
on their check, the NSF checks are mailed by the bank directly to our
processing department after the first presentment. We will then initiate
up to two electronic transmissions to the ACH network on dates most
likely to be more successful for debiting the customer's account, preferably
toward the end of the week or days specified by the merchant. The collected
fund is then immediately credited to the merchant's account, along with
a predetermined rebate for the additional fee collected on each check,
as allowed by State Laws.
For larger retail merchants, utility companies, and government organizations,
we provide the only state-of-the art RCK service of its kind in the
country. Click here for additional information.
Benefits of using NSF Check Representment:
- Electronic check transactions are given priority by banks for clearing
over paper check submissions
- Electronic check recovery dramatically increases collection rates,
by as high as 90%.
- Faster availability of funds. Collected funds are electronically
deposited into the merchant's bank account daily, not weekly or monthly
through traditional collection services
- No geographical limitations. Out of town checks are handled like
local checks for clearing by banks
- No monthly fees
- No annual fees
- No special equipment needed
- No more re-deposit bank fees
- No second NSF service charges to the merchant by the depositing
bank
- Merchant receives 100% of the face value of the check
- Nationwide network provides merchants with the best possible speed,
accuracy and service
- No cost to merchants. NSF check writer pays the fee. This fee is
taken from their account electronically. Rebates to merchants may
be possible under special arrangements.
- Free to very minimal set-up cost. We will supply all point-of-sale
materials free of charge.
More on Electronic Representment
Flow Chart of an Electronic Transaction
Call or Email Us today for a free evaluation or information.
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