|
|
FREQUENTLY ASKED QUESTIONS - FAQ |
|
1. What is RCK?
RCK refers to represented check entries or the process of resubmitting NSF checks electronically through the
ACH Network.
2. When was RCK approved?
NACHA (National Automated Clearinghouse Association) approved the new
banking that allows merchants to represent NSF checks electronically on March 10, 1998.
The rule became effective on September 18, 1998.
3. How can merchants benefit from RCK?
RCK or Electronic Check Re-presentment allows the merchant or agent to
time when the check writer's account is debited. This alone can result in
substantial increase in recovery rates.
4. Are there cost savings to the merchant?
Yes, since everything is electronic, there are no redeposit fees charged
to the merchant for resubmitting the checks electronically. There are no return fees on
NSF checks checks that are returned a second time. Additionally there are no letters
to write or phone calls to make to the check writers attempting to collect the bad checks.
5. What can a merchant expect in improvement of recovery rates
with electronic check re-presentment compared to traditional methods?
Increases in collection rates from 30% to 85% have been reported by
merchants using RCK.
6. What legal regulations and
guidelines apply to RCK?
RCK entries are subject to the applicable NACHA Operating Rules,
Uniform Commercial Codes (UCC) and Regulation CC. However, RCK transactions are
originated by check and are therefore exempt from the provisions of the Electronic Funds
Transfer Act and Regulation E.
7. What types of checks can be
represented?
Checks that indicate on the face that it was returned due to "Not Sufficient
Funds," "NSF"a, "Uncollected Funds" or comparable language.
8. How many times can the merchant represent an item?
A total of three (3) presentments are allowed. The RCK entry can be sent twice if there
was only one previous physical presentment, but only one time if there were two physical
presentments.
9. Is there a dollar limit on checks that can be recovered?
Yes, checks with a face value of $2,500 or less may be processed.
10. What must the merchant do to inform the customer?
The merchant must notify the consumer that their return item may be collected
electronically if the check is returned for insufficient or uncollected funds. Notice
should be contained on a sign at the point-of-sale, or on the monthly billing statement
for billing firms.
11. Is there a time limit on checks that can be represented?
Yes, each RCK entry has a time limit of 180 days from the date of the check.
12. What items are not eligible for re-presentment?
-
Drafts drawn on the Treasury of the U. S., a Federal Reserve
-
Bank or a Federal
Home Loan Bank or state or local governments.
-
Postal Service Money Orders.
-
Items not payable in U.S. currency.
-
Items indicating on its face that it was returned for reasons other than
"Not Sufficient Funds", "NSF", "Uncollected Funds" or
comparable language.
-
Checks drawn on business accounts.
-
Checks over $2,500.
-
Third Party items.
-
Unsigned demand drafts.
|
