CHEXcollect

NSF Check Recovery

I recently saw a sign on the wall behind the counter of a store that read "We will gladly accept your personal check up to $50 with a $100 cash deposit". Well obviously this storeowner made it clear that he wasn't interested in taking checks. The problem is that by refusing to accept checks he is probably turning away business that would have made his business more profitable.

A great solution to this general fear of accepting checks is the CHEXcollect electronic check recovery program. The best part of this program is that it costs you the merchant nothing. Yes, please let me repeat that - it will cost you nothing, nadda, zilch!

Here is how the program works:

A customer writes a check in your store. Should the check bounce then your bank will forward the check directly to CHEXcollect. When CHEXcollect receives the check, they will electronically resubmit the check directly through the Automated ClearingHouse (ACH) for a full sixty (60) days. Most of the checks that bounce are not intentional and CHEXcollect has a collection percentage of 88%. Once collected, the funds are released to you weekly for the previous week's collections and you receive 100% face of the check.

So to review the last 2 paragraphs it costs you NOTHING and you receive 100%.

Well, that sounds might friendly. You may be wondering how CHEXcollect makes their money. Almost every state legally permits a NSF penalty surcharge to be added to the original check amount. In most states this is $25.00 and this amount (whatever your state's legal limit is) will be retained by CHEXcollect as their fee.

In those 12% or so cases in which the funds cannot be recovered within 60 days you are given 2 options at signup. The first is that after 60 days CHEXcollect finally gives up and then you can try to pursue the bad check writer yourself. This is not because they are tired of trying to recover the bad check, but because that is the legal time limit for electronic recovery. The second option is that after 60 days the NSF check is turned over to an affiliated collection agency in what is called secondary collection. Here an attorney who has the authority to commence a suit within the state of the check writer is retained. Full details of this process are detailed on the Merchant Application. We usually recommend the second option for those merchants who generally take checks for large dollar amounts. You are free to choose which option is best for you for all of the bounced checks you might receive.

If this sounds like the right check protection program for you then after reading the FAQ's simply click on the Signup button below. Here you will find two forms that you should print from your computer. The first is your Merchant Application that you should fill in completely and fax to us at 215-489-7880. Within 2 weeks CHEXcollect will send you your welcome package. The second form is the Bank Release Authorization which you should also fill in completely and then hand deliver it to the Commercial Accounts Representative at your local bank where you have your business checking account. Your check recovery program will begin as soon as your bank begins to forward any bounced checks to CHEXcollect.

Should you have any questions about the program please feel free to contact Kevin via e-mail or by calling 215-489-7878.