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How
Electronic Representment of an NSF Check Works:
-
Your
customer purchases a lawn mower for $399 by check.
- You,
the merchant, display at the point-of-sale a sign
stating that you will collect a nonsufficient funds (NSF)
check by electronic debit of the customer's account.
- The
customer's check is returned for insufficient funds.
- You,
the merchant, have authorized the bank to return your NSF
checks to the service provider, Electric Checks. Electric
Checks promptly notifies you that you have a NSF check and
collection is underway.
- Electric
Checks converts the NSF check into an electronic item which
is sent through the Automated Clearing House (ACH) and finally
to the paying bank.
- Paying
bank receives and posts the ACH transaction to the customer
account. All funds are held for 7 business days.
- If
there are funds available to cover the check, the funds
in the amount of $399 are electronically transferred to
your account.
- A service
fee, allowable by law, is also debited from the check writer's
account.
- If
funds are not available to cover the check, the process
can begin again until it has occurred three times. To increase
the chance of payment, Electric Checks will call the paying
bank to verify the availability of funds before the second
or third representment.
- You
will receive appropriate paperwork during the collection
process.
- You
do not have to contact the check writer.
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Check
Facts:
Did
you know? More than 68 billion checks were written in the US
in 1999.
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