FAQs about Online, Electronic Check Recovery

 

1. Your business can use the Electronic Recovery system without charge.  Using a "profit share" model, Electronic Recovery is paid by keeping a portion of the collected state fee.  On average, the state allows you to charge the checkwriter a $25.00 NSF fee, of which Electronic Recovery will keep 20% and forward the remaining 80% to you.  

2. Or, you may choose to pay a "per transaction" fee on each transaction that is processed.  This is often the preferred model for those companies wishing to leverage the benefits of electronic check recovery but who don't always want to process for the NSF fee.  In those cases where you decide that processing for the NSF fee is appropriate, you pay only the transaction charge and the NSF fee is 100% yours to keep.

Electronic Recovery will credit any successfully recovered money into your business account the next business day. 

Checks may be deposited a total of three (3) times so;

1. If the check was only deposited once as a paper item, you get two (2) electronic attempts.  

2. If the check was deposited twice as a paper item,  you only get one (1) electronic attempt.

1. Checks must be "consumer" checks, business checks are not allowed.

2. Checks must less than 6 months old.  (180 days)

3. Indicate on the face of the check that it was returned for Insufficient or Uncollected Funds.

4. Must have a pre-printed number.  Counter checks and Starter checks are not eligible.

5. You must have notice clearly posted at the point of sale stating your intentions to electronically redeposit any checks that are returned.  

Yes you can, but you must have proper authorization to do so.  Authorization can be gathered numerous ways, one of which is to have the checkwriter sign a blanket authorization that covers any checks written from that day forward.  This works well for industries or companies who have a contract in place, such as cable providers, rentals or rental agencies, dental offices, hospitals, grocery and convenience stores using  check cashing cards, etc.  Another method is to have the checkwriter initial authorization verbiage that is stamped on the back of the check at acceptance time.  

Yes there is.  Because you have notice posted at the point of sale stating your policy for the collection of NSF Fees, Electronic Recovery can create a paper draft on your behalf for the amount of the fees.  This paper draft is deposited as a normal paper check and will be presented against the checkwriters account.  Paper drafts are not as fast as electronic transactions so recovery will take longer, but all in all, it is a very good alternative for  those who don't want to acquire "written authorization."

Nationally averaged, the fee is approximately $25.00, some states allow for more and a few states are less.  Your Electronic Recovery representative will be able to assist you if you are in doubt as to the fee in your state.  Some states also allow for the recovery of bank fees.  (The fee that the bank charged you when they returned the unpaid check back to you.  This fee usually falls between $3.00 and $5.00.)

Your collection rate will depend on several factors, some of which include the type of industry your business is in, the dollar amount of each check, and the dates that you select for the electronic redeposit to take place on.   Typically speaking, small dollar checks will have a greater chance of clearing than larger checks.   Overall statistics show that an average collection rate of 65% to 75% of the NSF checks processed can be reasonably expected.