Follow up on Bad Check advice... - Posted by Jennifer(NH)

Real Estate Investing
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Posted by raelynn mitchell on November 16, 1998 at 12:42:33:

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Follow up on Bad Check advice… - Posted by Jennifer(NH)

Posted by Jennifer(NH) on November 10, 1998 at 15:55:34:

This website offers check writing software that Mr. Donald as alluding to. Thought you would be interested. http://www.electronicfunds.com

Additionally here is some information on the Check Re-presentment process. I think this is a great route to getting money out of bad checks and will quickly pay for itself.

Benefits of ELECTRONIC Check Re-presentment

  1. Increase of 35% to 40% in collection success rates.
  2. Reduces bank redeposit charges from as much as $3.00 each.
  3. Electronically re-presented checks are processed by the ACH before paper checks.
  4. Eliminates NSF fees on re-deposited items that are returned a second or third time. Typical fees are as much as $5.00 per check.
  5. Merchant gains greater control and more precise timing over bad check collection efforts.
  6. Merchant can target specific dates to represent. (Example 2nd and 16th right after paydays.)
  7. Third party expenses are saved.
  8. NSF notices received in approximately 2 days as compared to 10 to 14, thus checks can be resubmitted much quicker for greater success in collection.
  9. Customers prefer to hear from check recipient, rather that a third party.
  10. Recover NSF funds more rapidly - within 10-20 days as opposed to 60-90, experienced with traditional methods.
  11. Collect NSF fees electronically.
  12. Customers benefits by being removed from negative file records more quickly.

How it Works

  1. Merchant or Agent receives paper check back from bank.

  2. Merchant or Agent enters check information into their computer via the Re-presentment software. Check’s MICR line may be entered through a check reader thus eliminating key stroke errors.

  3. A batch of checks is created and transmitted to the EFT Network via modem.
    NOTE: All batches are transmitted in an encrypted format.

  4. After receipt by the EFT Network, NSF are converted to the ACH format and processed through the ACH network (usually same day received).

  5. Funds are credited to a specialized holding account and held for 5 days while the return items (NSF, Account Closed, etc) Are being received from the ACH. On the sixth day, the total dollar mount of all checks that have not been returned within the 5 day holding period, are credited directly into the merchants or agent’s bank account.

  6. Most return items are received within 2-3 days (you are notified immediately of (NSF’s) after presentment, but a small percentage are returned late. Those items that is returned after the holding period is debited from the merchant or agent’s bank account.

  7. Tracking of items by the merchant or agent may be done on a daily basis simply by dialing in through the modem and requesting a report.