About Electric Checks Bounced Check Service

About Electronic Check Representment

Any business that accepts checks as payment for goods and services will be faced with trying to collect on a check returned for insufficient funds or nonsufficient funds (NSF). About 1 out of 100 checks you take in will be returned due to insufficient funds. Every returned check you can't convert to cash can cost more than the face value of the "bounced check". Consider the administrative time you spent to collect the check, the extra bank fees incurred and the value of your product or service purchased (now lost) with the returned check. How many times have you just put the returned check in your desk drawer and forgot about it?

What Has Changed?

Now there is a program that allows a business other than a bank to electronically debit the bad check writer's account via the Automated Clearing House (ACH). Representment is the conversion of nonsufficient funds (NSF) and uncollected funds checks into electronic items. Electronic representment is more effective than a physical representment of a check for the following reasons:

an electronic representment usually puts the check first in line to be paid
a total of three representments are now permitted instead of two
the check can be timed to clear by calling the bank to assess the availability of funds prior to resubmitting the check by electronic means
a returned check can be represented up to 180 days from the date appearing on the check

Effective September 15, 1999 this Interim Rule became a Permanent Rule under the direction of the National Automated Clearing House Association (NACHA). NACHA, located in Herndon, Virginia, develops operating rules for the Automated Clearing House Network in the area of electronic payment solutions, such as bill payment, electronic checks and electronic benefits transfer. The Permanent Rule creates an operating and legal structure to represent returned checks on consumer accounts through the ACH Network.

Check Facts:
Did you know? 1% of the checks a merchant accepts will bounce.
Half of these bounced checks will be recovered.