What is Electronic Check Recovery
or Re-Presentment?
First, electronic check recovery IS NOT the conventional, manual, traditional method of recovering non-sufficient funds (NSF) or returned checks.
Furthermore, it is NOT the check scanning equipment and their associated fees and long-term contracts.
Electronic check recovery is a new technology, authorized by a recently approved banking rule, that allows funds to be recovered from the accounts of those who bounce checks. After a bad check bounces a Re-presented Check Entry (RCK) may occur up to twice, which drastically increases the recovery rate and the speed at which your recovered funds are returned.
The new electronic process was created by the National Automated Clearing House Association (NACHA) in response to the needs of businesses that need faster and more successful recovery of returned checks. See www.nacha.org.
NACHA projects that the rate of successful recovery could increase by up to 20-35 percent over conventional methods.
In short, electronic check recovery is a new tool designed to help merchants win the battle against those who write bad checks. It offers overwhelming advantages over old, conventional collection methods. Best of all it is FREE.
