Q - Is there a minimum or maximum number of checks that Check
Connection will handle for us?
A - No. Check Connection
can handle any volume of returned checks your store or company
provides. Even the small companies will receive our full attention
in recovering your checks.
Q - Is there a set-up
A- No. We never charge any
fee for setting up your business. There are no hidden costs.
Q - How much does your service cost?
A - We believe the burden
of paying for our services should be paid for by the check writer -
not the merchant. Our collection efforts are paid through the
collection of both the returned check and the returned check fee.
Simply stated, if we don't collect both we don't get paid. We retain
the returned check fee and remit 100% face value of the collected check
to the merchant. If we are only able to collect the check amount but
not the service charge, you will still be paid the full face value
of the check. In many cases we are also able to provide a rebate to
the merchant from the collected service charge to offset their bank
charges for the returned item. The rebate varies according to the
check volume provided.
Q - Can you handle my
A - Check Connection can
collect checks from virtually every bank in the United States. Your
out-of-town or out-of-state checks are collected with the same
efficiency as your local checks.
Q - What is the cost of
A - Check verification is
free and uses a toll-free number so there is never a charge to your
company. Verifications take just a few seconds, much faster than
most credit card transactions.
Q - What equipment is
required for check verification?
A - Check Connection can
usually use your existing credit card terminal to also perform check
verifications. We program your Verifone Tranz terminal
to coexist with your credit card application. The check verification
will not interfere with your credit card sales, debit cards, EBT or
any other applications on your terminal. We encourage the use of a
Magtek check reader to quickly and accurately read the checks. We
also use the IVI Check Manager 3000, which is a freestanding
all-in-one unit that combines the terminal and the reader. Check
Connection can provide this equipment to your business at the lowest
possible prices, and can often provide refurbished units for a great
Q - Can I use your service
without having the verifications? Our fast food business doesn't
have time to verify checks during our peak traffic times. All I want
A - Yes. Check verification
is not required for us to do your collections.
Q - Can our company handle
all correspondence with our corporate office instead of each
A - Yes, this actually
simplifies the process. We can still provide reporting to your
corporate office for any individual store, region or district.
Q - My bank normally
re-deposits my returned checks. Is this best for my business?
A- Automatic re-depositing
of checks is a great idea for the banks, but it is a bad idea for
your business. When a bank re-deposits the check, it bounces again
the majority of the time. Your customer is charged another returned
check fee from the bank, and your business is charged another
deposited item return fee from your bank. These fees quickly add up,
and now the customer may not have the money to pay for your checks
for some time. Banks always pay their fees before they pay
merchant's checks, so any deposits the customer makes are quickly
gone. If the account has too many problems the bank will close the
account, making further bank collections impossible.
An important point in
reducing multiple losses from this same account is by quickly
entering this account into the check verification system. Because
the double-deposited check takes about a week longer to reach Check
Connection, we can't enter it in to the check verification system
until we receive it. This lets the same customer write several more
checks to your business, probably none of which will clear. If these
are frauds you probably won't recover any of them. If they were just
honest mistakes your money will take much longer to be paid, because
the customer had so many fees to pay.
You must also understand
that when a check is re-deposited and fails, the bank often punches
holes through the account number making it difficult or impossible
to obtain the correct account number. Because the verification
system is based on using the account number as part of the
verification process, you may continue to accept many more checks
from this same problem account until the correct account number is
determined. This results in a needless and expensive loss to your
Checks presented to Check
Connection after the first failed deposit have the entire account
number intact, so the correct number is entered in to the
verification system. This quickly prevents the check writer from
writing additional checks to your store, because we start declining
the check during verification when the information is very first
available, just a few days after the check was written. This
drastically reduces your losses and quite often alerts the customer
to a problem they may not yet be aware of. They can stop writing
checks, quickly deposit money in to their bank account and minimize
their returned check expenses.
Checks received after the
first deposit are allowed two attempts at electronic collection, up
until the check is 180 days old. If the account remains open there
is an excellent chance we will be able to collect your money,
usually within thirty days. Re-deposited checks are only allowed one
additional electronic re-presentment. This reduces your chances of
recovery by 50%.
Also consider the rebate
Check Connection offers to your business. Because single
deposited checks are collected more efficiently, our
average cost of handling each check is reduced. This means we can
share a larger portion of the collected service charge with your
company. Your rebate will be larger, you'll receive more rebates,
and you'll also incur less deposited item return fees from your
In summary, with
single-deposit checks your collection chances are much greater, your
customers as a whole have less bank charges and service charges, you
greatly reduce frauds and multiple losses to your business, your
bank costs are lower and you receive higher rebates.
Q - Is it legal to collect checks
A - Yes. National Automated
Clearinghouse Association (NACHA) approved the new banking interim
rules that allow a merchant or agent to re-present NSF checks
electronically in 1998. The permanent rule became effective on
September 15, 1999. Banks must accept the electronic transaction.
The banks operate under the same rules that we do. We are both
required to follow NACHA rules.
Q - What type of notice is required to
A - The customer must be notified at the
point of sale that this process will be used to collect their check
in the event it is returned unpaid, and to notify them of the
returned check fee. Check Connection provides these stickers to post
at each checkout lane. They must be displayed where they can easily
Q- Will my customers like electronic
A - Yes. Your customers will be pleased
to have a convenient way to settle the problem without receiving
collection telephone calls or letters.
Q- What checks are eligible
for electronic check re-presentment (RCK)?
A - Personal checks
returned as either insufficient funds (same as non-sufficient funds)
or uncollected funds are eligible. They must be less than 180 days
old, and be less than $2,500
Q - Which checks are
A - The following items are not
Q - Is electronic check recovery more
A - Yes. Recovery rates increase as much
as 50%, resulting in an a very high recovery rate for NSF checks.
Q - When and how fast do I
receive my money?
A - You can have your money
in as little as ten days after we receive the check in our office.
We must allow a few days for the electronic transaction to
process. Checks that do not clear the first re-presentment, or
checks that must be collected through traditional collection methods
usually take a little longer. However, you will always be paid
within seven days of the date we receive payment.
Q - How soon can I begin using Check
A - After we receive and approve your
enrollment forms, we will immediately send you the required stickers
explaining the returned check charge and notification of recovery
through electronic means. This process will take just a few days.
Q - We also have many
checks that we couldn't collect on our own through in-house
collections. Will you also collect these?
A - Certainly. Realize
though that collection on these will not be as high as collection on
new checks, but we will do our best to collect them and will be
successful on many of them.
Contact us at email@example.com
for more information
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