Phase 1 is just for NSF checks - when collected you receive 100% of the face value plus 25% of the collected state bad check fee at no cost to you.

Phase 2 is OPTIONAL and involves NO extra charges.  This collection phase is for stop payment, closed account, and any NSF checks NorthStar cannot recover in its first phase collection.  The full value of a phase 2 check plus the full state bad check fee is divided equally (50/50) between NorthStar and its clients in second phase collections. 

A nice summation of how NorthStar process checks is located here.