| 1. |
Does ReChek require contracts?
ReChek never locks you into a contract. We do have an agreement that gives us permission to process returned checks for you. All we ask for is a 30 day written notice. We hold onto our clients by our results, not by a contract.
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| 2. |
What are all the steps to processing a returned check?
If a check you deposited is returned, your bank will forward it to us. You will receive a bank detail letting you know the check was returned, as well as a Returned Check Report from
ReChek telling you the check writer’s name, the amount, check number, and reason for return. You will also receive the driver’s license number, account number, and the cashier initials if you like. Once a week, you’ll receive the Reimbursement Report showing what checks paid. On our end, we notify the check writer, we ping the account, and once a deposit is made we electronically get your money if at all possible. Pings continue for 30 – 45 days, and during that time traditional collection letters are still going to the check writer. At the end of the 30-45 day period, we’re ready to file charges if your county allows it.
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| 3. |
Do I have to have my bank forward you my checks or can I just forward them to you?
We’ve found that the most efficient way to process checks mandates having checks forwarded directly to us from the bank. Many checks can be electronically collected within 72 hours of our receipt of that check. Getting to the account in a timely manner is key.
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| 4. |
If the bank forwards my checks to you, how will I be notified that I have a hot check?
You’ll receive two actual notifications of a check bouncing—one from your bank, which is a “detail” showing that a check has bounced and been taken out of your account balance, and the other from us. On the day we receive the item from the bank, we’ll send a detailed report showing the check writers' name, amount, check number, and reason for return, as well as the drivers license number, account number, and cashiers initials.
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| 5. |
What if I have some hot checks from the past that I have been unable to collect. Will you try to collect them?
We can attempt traditional collection methods on all items that are within the statute of limitations for your state. Electronically, a lot depends on the age of the old hot checks you’ve attempted to collect and your previous collection methods. There are strict Federal regulations on the number of times you can electronically present a check. You can review
NACHA's
web site for more information. If the checks are within specific time frames and meet other requirements, we can try to collect them electronically. When we receive an old check, the check writer is notified of our collection attempts just as any "new" check writer would be.
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| 6. |
What is required of the merchant who takes the check?
You must post the stickers we provide showing your returned check policy. We will attempt to collect any check you take.
While there are no other requirements, we offer several suggestions to keep your check returns as profitable as possible. Again, we won’t refuse any checks that you send us, but checks with no check writer information, or checks without MICR lines make it impossible to send notifications or send electronic queries. Checks that are not signed preclude filing charges. We provide a self-inking stamp for the back of the check that you must use—stamp the back of the check and have the check writer sign it. This also doubles as your deposit stamp and saves you a step, as well as keeping things moving along in our data entry department. The following is our recommended check acceptance policy:
- Checks for the amount of purchase only
- No two party checks
- Valid drivers license or state ID card EVERY TIME
- ID MUST match info on the check
- No pre-signed checks
- Checks must be pre-printed (no temporary / handwritten checks)
- Phone number and PHYSICAL address (from ID) required
- Returned-check policy stamp must be signed
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| 7. |
Is the consumer's "authorization" required to electronically debit the check writer's account?
As long as the signs are posted in your store, the signature on the front of the check allows us to electronically debit a check writers account for the face amount of the check. The stamp and signature on the back authorize our electronic collection of the fee as well.
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| 8. |
What about checks that return with a closed account?
When a check returns on a closed account, we first verify that the account is actually closed and this is not a bank error. Electronic representation becomes impossible at that
point; however, traditional recovery methods (up to and including filing charges on the check writer or working with a civil law firm) have proven very effective.
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| 9. |
What do you do if you monitor an account and don't find money?
Accounts are monitored for 30-45 days (depending on your state and county) in a normal collection cycle. Keep in mind that during that same 30-45 day period, contact attempts with the check writer are continuing. At the end of the collection cycle, if we have not collected a money order or cashiers’ check from the check writer, charges are filed with the appropriate authorities, or a civil law firm becomes involved.
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| 10. |
What about forgeries?
Unfortunately, forgeries are a part of the business. That is why it is imperative that clerks verify the check writer’s identification. If we receive the appropriate legal documents from the check writers’ bank and/or police showing that these are truly forgeries, there is still nothing we can do to collect these items until the forger is caught. If caught, a forger will usually do jail time and not have to pay compensation. Approximately 95% of forgeries are impossible to collect.
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| 11. |
When am I paid for recovered checks?
ReChek makes reimbursement payments once a week, and these items are deposited directly into the account you choose. Prior to that payment, you’ll receive a detailed report showing what items paid, how much, and (if you’re a
BPS participant) your revenue share.
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| 12. |
Who Retains the Paper Check when Electronic Recovery is performed?
ReChek retains the paper check while electronic or traditional recovery is in process, as per federal regulations. If we are unable to recover a check and it is filed with your county or parish, those officials will have possession of the check until the check writer is caught and pays for the check or until the statute of limitations runs out.
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| 13. |
What notice does the check writer get on their bank statement?
When a check writer bounces a check, they will normally receive a notice from the bank in the mail immediately. This also shows up on their monthly bank statement as a returned item. If an item is electronically collected, this shows up on the bank statement as a “REDEP CHECK.”
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| 14. |
If I sign up for BPS, when do I get my revenue share?
Revenue share is paid weekly with the regular reimbursement payout. In the event a face amount is collected prior to a fee, the revenue share would not be paid until we receive the fee amount from the check writer. No revenue share is paid on items that require we file charges.
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| 15. |
Is electronic recovery friendly to my customers?
Electronic recovery is very customer friendly for many reasons. First, customers do not have to deal with the embarrassment of a hot check directly with the merchant. They do their normal banking and the check situation is taken care of. Our customer service reps are highly trained to make certain that collecting this check does not run off one of your customers. As an added bonus, check writers don’t have to spend the additional time or money on purchasing a money order or posting it to us. One of our clients, an optometrist in San Antonio, TX, wrote a letter praising our customer service and making sure that we were aware they "have not had one customer complaint" about the electronic procedure or our services in general.
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| 16. |
What fees will be charged to my customers that write me a hot check?
ReChek will charge customers writing a hot check the state-allowed fees. Most banks will impose fees of their own, but we do not participate in the retrieval of those items.
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| 17. |
Do I need any special equipment?
No special equipment is required if you’re not using verification. The quickest and most convenient way to receive your reports is via e-mail, so a computer is a decided advantage. If you wish to receive reports by fax, it is best to have a dedicated fax line to be certain you get all reports. If you wish to receive your reports by US Mail (this is not recommended), then no equipment is required at all.
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| 18. |
Who regulates electronic check recovery?
All electronic banking items are handled through the Federal
Reserve, and
ReChek is an Originating Depository Financial Institution
(ODFI).
NACHA
keeps track of the rules and regulations.
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| 19. |
How many times can a hot check be deposited?
For serious details on this, visit
NACHA's
website. Basically, a paper check is allowed a total of three presentations to the originating bank—as a rule, the first time is when the check is presented and bounces. The check would come to
ReChek at that time, where we are allowed two electronic representations. If a person phones and requests that we send the electronic request again, we are allowed to follow up on the verbal authorization.
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| 20. |
How soon
can I begin using ReChek?
Right now! It takes five minutes to sign up. As soon as we receive your signed Forwarding Authorization, we fax it to your bank and you are set. Many banks are able to comply with the request on the same day, while others (Wells Fargo, for example) can take up to two weeks. There are credit unions (and the occasional bank) that will not forward checks to us at all. It’s up to you whether you wish to continue using a bank that will not honor your requests, and if you do so we’ll send you some envelopes to forward your hot checks to us after your bank sends them to you.
Contact us today to experience the
ReChek difference!
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Frequently
Asked Questions
