FAQ
What is RCK / Returned Check Collection?
Returned Check Collection is a newly introduced means of collecting returned checks.
Recent updates to the rules of the ACH Networks (where checks and electronic items
drawn on checking accounts are sent for forwarding to other banks) allow a returned
paper check to be converted into an electronic item, which can then be presented
electronically up to two times. This process is called Electronic Re-Presentment (RCK).
How does RCK work?
NorthStar Technologies (NS) gives instructions to the merchant’s bank for all
returned checks to be forwarded to the RCK Processor. The RCK Processor converts
the paper items into electronic items and submits them for clearing.
An online reporting tool allows merchants to view the status of all checks they have in the RCK process.
What are consolidated or centralized returns?
Centralized Returns processing consolidates a company's returned checks into one bank,
even though the company may have many depository banks. This allows a company to control
the collection process more effectively by having the return items centralized to one location.
This expedites collection through Electronic Re-Presentment and provides significant costs
savings on banking fees. You will also know more quickly when an item has been returned with
Centralized Returns processing, a critical factor in increasing collection rates on NSF items.
Why haven’t I heard of electronic re-presentment before?
Electronic re-presentment, or the electronic re-deposit of returned checks, has been in use
throughout the industry for several years. The National Automated Clearing House Association (NACHA),
the governing organization of the ACH industry, approved new regulations regarding electronic
re-presentment that became effective in September 1998. This change protects both merchants and
consumers by creating a new classification of transactions specifically for electronic check re-presentments.
How do I make my customers aware of our new check acceptance policy?
RCK Processors provide check return policy signs for all of your stores and locations.
These signs ensure that the customer understands the merchant's check acceptance policy at the point of sale.
How will using RCK affect my customers?
RCK is the "customer-friendly" solution to returned checks.
RCK will simply have your customer's check presented to their account up to two times.
This process occurs automatically, so that there is no effort required on the part of your customer.
A customer service number is also usually available for any customer questions or disputes.
Does RCK try to recover all checks, or just checks returned for insufficient funds (NSF)?
RCK attempts the recovery of all returned checks stamped NSF (insufficient funds) by the paying bank.
Checks returned on closed accounts become screened items. "Stop Payments" and "Refer to Maker"
are forwarded to the merchant for additional information and/or handling of item.
Checks returned for other reasons are manually reviewed to decide which recovery method is applicable.
What if I don't have access to the Web?
If you do not have Web access, NorthStar can usually fax or mail monthly account statements directly to you.
Merchants may also receive images of all or specific returned checks, weekly statements, or daily account statements.
Depending on frequency and length of report there may be an additional handling fee attached to reports that come other
than web delivery.
Do I get paid the face value of my check?
Yes. NorthStar, forwards to you 100% of the face value of the check.
How can I track what is happening with my NSF checks?
NorthStar provides real-time online tracking on a 24/7 basis.
Check Acceptance Tips For The Merchant
Protect your businesses from "NSF," "Account Closed," "Counterfeit"
checks by following these simple guidelines when accepting checks.
- Establish a check acceptance policy clearly
defining acceptable forms of ID, required information and dollar limits.
Allow no exceptions to these policies.
- The check writer's name, addresses & phone
number should be printed on the check. Make sure the written and numeral
amounts correspond.
- Observe the check writer signing the check. If
the name is illegible, have the customer print the name below.
- Compare the signatures, photo and physical
description of the ID with that of the check writer.
- Verify that the ID is still valid. Check the
driver's license for signs of alteration or modification.
- Most returned checks have low check numbers (100
to 500), which indicates a new account and therefore a more risky check,
particularly for business or "dba" (doing business as) checks.
- Other useful information on the check is the
account's opening date (month and year), usually indicated by four
numbers to the side of the account holder's name and address.
- Don't accept second- or third-party checks.
- The four digits following the magnetic ink
character recognition (MICR) number at the bottom of the check should
match the four-digit number at the top right hand of the check.
- All checks, except government checks, should
have a perforation along one side of the check.
- Call the financial institution to confirm if funds are available, although this is no guarantee that the check will clear.
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