In March of 1998 the National Automated Clearing House Association (NACHA) passed a rule known as "Re-Presented Check Entry" (RCK). Some merchants think of this as "electronic check processing." The RCK rule allows check collection services to electronically collect the face value of a check marked NSF (non-sufficient funds). RCK essentially turns a "paper check" into an electronic item. Since electronic transactions are typically processed before paper items (and this includes paper checks), RCK collections will usually be among the first items to be paid from a bad check writer's bank account (it is like your business is "first in line" to be paid for your bad checks). NorthStar also seeks to "time" its RCK efforts to further increase their bad check collection rate.
NSF checks (under $2,500) may be re-presented up to two times using the RCK rule, and merchants are not charged any type of additional deposit fee. RCK check recovery allows NorthStar to virtually "sweep" a bad check writer's bank account for funds, and this is done without charge to your business and avoids embarrassment on the part of your customers.
If you choose to use a NSF check recovery service other than NorthStar for bad check recovery, be sure a competitor uses RCK check recovery plus all the other available check recovery tools. Too, be sure all the check collection services you are supposed to receive are FREE! The RCK check law reques that check disclosure stickers (also known as a "bad check notice") be posted at your place of business so be sure you are provided these as well.
If you have questions about RCK check collection or would like to further discuss NorthStar's NSF check recovery service for your business, please feel free to contact me (Brad Price) by e-mail or phone (574-875-9994). I am one of NorthStar's NSF check recovery service specialists and bumchecks.com is my personal web site.