How Electronic Representment of an NSF Check Works:
To use this free bounced check collection service, you must enroll and then post a sign at the point-of-sale and include language on your invoice, website and/or credit application stating that you will electronically collect non-sufficient funds checks by debit of the check writer’s bank account along with a service fee allowable by state law.
Enrollment and this service is FREE to you! Click here to enroll now!
Here is an example of how the system works:
- Your customer purchases fuel oil for $699 by check.
- You, the merchant, display at the point-of-sale a sign stating that you will collect a non-sufficient funds (NSF) check by electronic debit of the customer’s account. The language may also be placed on an invoice, website, or credit application.
- The customer’s check is returned to you by the bank for insufficient funds.
- Fax the bounced check you wish to collect to Electric Checks at 702-543-4843.
- 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 bad check writer’s account.
- If there are funds available to cover the check, the funds in the amount of $699 will be electronically credited to your account within 6 business days after clearing the bank.
- A service fee, allowable by state law, will also be debited from the bad check writer’s account.
- If the check comes back NSF, it can be represented a third time as long as the check is not stamped “Do Not Redeposit”.
- You will notice of the check results by email.
- You do not have to contact the check writer.
- To be electronically processed, the NSF check must be less than $2500.00 and less than six months old.
- This is a free service to you because the bad check writer pays a service fee.
Enrollment and this service is FREE to you! Click here to enroll now!