Electronic NSF Check Recovery Application

NsfCheckProcessing.com is an Internet based application for electronic NSF check entry, and a comprehensive cradle to grave NSF check processing and management tool allowing businesses to restrictively access current NSF check information on-line, enter NSF check information, analyze check data, and manage the entire recovery progress.

If your business experiences significant volume of returned consumer checks, and is interested in collecting your bounced checks in-house electronically, then we have the optimal software solution for you.

If your business model is to offer NSF Check Recovery Services to merchants nationwide, and in the process build a transactional residual business by processing NSF checks and check writer return fees on behalf of your clients, visit http://www.nsfcheckprocessing.com for more details.

What merchants are looking for are increased collection rates; better, faster information on returns; and a cost effective alternative for collecting low-dollar checks that will help reduce overall NSF check write-offs.

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Merchant Benefits

• Increased Collection Ratios - Electronic checks are processed ahead of paper checks, clearing ahead of checks written days earlier. Recovery ratios can be as high as 85% based on age of check.
• Improved Recovery – Check recovery odds are increased 33%--Paper checks can only be submitted twice (the original transaction and the redeposit). Electronic submission allows a third redeposit via EFT, significantly enhancing the chances of collection!
• Competitive Advantage - Having access to the latest check recovery technology will provide your business an advantage over competitors. Increased collection ratios and faster turnaround time is critical to attracting new clients and keeping existing customers happy.
• Reduced Recovery Costs – The software is fully automated, requiring fewer man-hours and creating the ability to process substantial higher volumes of returned checks. The software is so user-friendly and efficient; one full-time employee can process nearly 1,000 NSF checks monthly. No need for seasoned collectors here; entry-level personnel can be trained in a matter of minutes.
• Fast Settlement – Qualified (Non-Sufficient Funds or Uncollected Funds) checks are paid electronically within 24 – 48 hours.
• Eliminates Bank Fees – If the original paper check is re-deposited and returned NSF, your client may be charged a bank return fee (typically $5). Since EFT checks are processed electronically, there are no additional NSF fees charged to your client, and only a minimal return fee incurred by the Agency.
• Improved Consumer/Client/Agency Relationship – Faster check recovery re-establishes the consumer as a customer, allowing purchasing to resume—the client’s revenue increases—the agency’s service has higher perceived value, which stimulates client loyalty.
• Ease of Use – Fill in the blanks with information from the returned check—the software takes over from there. No need for seasoned collectors here; entry-level personnel can be trained in a matter of minutes.
• Customized Payment Plans – Automated payment plans are easily accessible to meet your debtor’s financial needs. Weekly, bi-weekly, monthly payments, no problem, enter the payment information once and forget it. The software automatically debits the debtor’s account as scheduled.

Consumer Benefits

• More Convenient / Less Intrusive – The customer’s check writing privileges are restored quickly with no need for them to bring cash or money orders to the merchant. Consumer is not inconvenienced or embarrassed by having to write a replacement check.
• Improves Credit – Faster processing time removes customer from negative database providing more access to goods and services.
• Easy Acceptance/Understanding – The consumer’s bank statement details the EFT transaction, avoiding confusion and misunderstandings.

Product Pricing Components

Collection Manager™ - PC Based Software Application

•  $_____ Application Fee
•  $_____ Per month Technical Support Fee
•  ACH Transaction Volume Pricing as noted below

ACH Transaction Clearing Account

The establishment of an ACH Clearing Account with a financial institution (ODFI) is required for processing transactions through Collection Manager™, and Collection Manager.com™.

An integral part of beginning to utilize electronic payment processing to resubmit NSF check returns is to partner with the right Originating Depository Financial Institution (ODFI). Not all ODFI’s are created equal—many still use antiquated software that is cumbersome, too technical in nature, and has poor reporting abilities. That’s where Affirmative comes in. We are associated with multiple ODFI’s, who act as our ACH Network Processors. Our ODFI’s are uniquely qualified to process your ACH transactions; our technical expertise in this area has led to significant improvements to the process, and our ODFI’s maintain dedicated ACH Departments with dedicated personnel that deliver exceptional customer service.

There are distinct advantages in dealing directly with an ODFI-ACH Processor.

First, having a direct relationship with an Affirmative ODFI eliminates the 3rd party processor middleman, reduces the risk of potential financial loss in the case of insolvency, shortens lines of communication, and, in the long run, results in better customer service.

Second, our ODFI isn’t going to hold your funds for extended periods. You will get full credit for transactions daily, and returns will be debited against the account on the same basis. Your business will have full next day access to the funds in your account, less anticipated returns. Once funds have settled, you have the option of setting up an interest bearing sweep account with the bank, or creating an ACH transaction debiting the ACH Clearing Account and crediting your operating account.

Third, and most importantly, your businesses’ ACH Clearing Account is insured by the FDIC through a nationally chartered financial institution.

Collection Manager™ and Collection Manager.com™

Collection Manager™ (PC Based Software Application), and Collection Manager.com™, (Internet Based Application with On-Line Reporting) both provide for NSF check entry and reporting functions. Only Collection Manager.com™, however, provides for on-line access whereby NSF Check Re-Marketers, Merchants, and Independent Sales Agents, can restrictively access current information, check data, commission data, and print reports as needed. The site will also enable each authorized user; a means to advise Collection Manager.com™ that an NSF item has been cleared by the Check Writer, and to discontinue resubmissions.  

NSF Item Processing Conditions

• To be eligible to be transmitted as a re-presented check (RCK) entry, an item must:
• Be an item within the meaning of Revised Article 4 of the Uniform Commercial Code (1990 Official Text)
• Be a negotiable demand draft drawn on or payable through or at a participating DFI, (Depository Financial Institution), other than a Federal Reserve Bank or Federal Home Loan Bank.
• Be in an amount less than $2,500
• Indicate on the face of the item that it was returned for insufficient or uncollected funds
• Be dated less than 180 days from the date the entry is transmitted to the RDFI
• Be drawn on a consumer account
• Must have been previously presented (a) no more than twice in paper form, if the entry is an initial re-presented check entry; or (b) no more than once in paper form and no more than once as a re-presentment check entry, if the entry is a reinitiated re-presentment check entry

Items that are ineligible for transmission as re-presented check entries include, but are not limited to:

• Non-cash items
• Drafts drawn on the Treasury of the United States, a Federal Reserve Bank, or a Federal Home Loan Bank
• Drafts drawn on a state or local government that are not payable through, or at, a Participating Depository Financial Institution
• United States Postal Service money orders
• Items paid in a medium other than United States currency
• Items which are third-party items (e.g., the payee endorses a check over to a third party who also endorses the check)
• Demand drafts and third-party drafts that do not contain the signature of the Receiver (e.g., the drawer does not sign a check but authorizes another party to debit his account via a draft).

Consumer Notification/Authorization Requirements.

Consumers are notified of NSF check remedies and consequences through signage and/or document signature requirements at point-of-sale. The disclosure sign language presented to the consumer should read, "$25.00 Fee for Returned Checks or the Maximum Amount Permitted By Law. Returned checks, along with the returned check fee, may be electronically presented to your bank." Other options, in addition to disclosure signage that meet these requirements are as follows:

Option #1 - Inserting language in the customer sales receipt or contract (or a one-time addendum with similar language mailed to existing customers) at the retail level advising the check writer that checks may be processed electronically, and that should checks be returned NSF, a return check fee may be electronically presented to their bank.

Option #2 - Stamping back of check with appropriate disclosure language and obtain check writer's full signature. There may be mechanical solutions available that will produce the desired language on the back of the check along with a deposit endorsement. In this case, the customer would simply be signing the check twice.

No Contact Required. There is no need for direct contact with the Check writer when re-presenting NSF checks electronically through the ACH Network. Since there is no notification/authorization requirements when re-depositing an NSF paper check, the same holds true when re-presenting an NSF check electronically.

Merchant as Collector. The re-presentment action on the NSF Check is taken on behalf of the selling merchant. Assuming there were appropriate signage, and/or prior notification/authorization to the check writer that NSF checks would be collected electronically, no further consumer notification/authorization is required.

No Third Party Collector Concern. The re-presentment entry on the check writer’s bank statement identifies the merchant as collector. The result is that actions taken by a third party processor on behalf of the merchant are transparent to the check writer. Since the merchant’s name listed on the check writer’s bank statement is recognized by the check writer, the debit entry should not raise questions as to the validity of the payment.

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