Check Recovery FAQ

• What does Electronic Check Recovery do?
  read more RecoveryNow! is an auotmatic check recovery service that provides check collection services by re-submitting NSF checks automatically through electronic check recovery.

• Who can benefit from RecoveryNow!
  read more Anyone who has checks returned due to insufficient funds.

• Is Electronic Check Recovery more effective than the traditional method of recovering NSF checks?
  read more Yes. Statistics show merchants using the traditional collection methods experience a 40% to 50% recovery rate. Electronic check recovery increases the recovery rate of NSF checks to 70% to 80%.

• Will Electronic Check Recovery save me time?
  read more Absolutely! We handle the entire collection process, so you don’t have to write letters or make phone calls to check writers. The recovered funds are deposited into your account within 48 hours after collection. Reports can be sent to you via e-mail or you can access them through the Internet.

• Will Electronic Check Recovery save me money?
  read more Yes. By re-presenting NSF checks electronically, you avoid potential re-deposit fees. In addition, you will avoid fees that result from NSF items that are rejected a second time.

• Does CheckVelocity provide both electronic check re-presentment and traditional collection methods?
  read more Yes. If your NSF checks cannot be collected electronically after the maximum number of attempts allowed, then the traditional collection process is available. Traditional means of telephone calls and letters will be used within legal guidelines in an effort to collect on those NSF items.

• How do I view my reports?
  read more Reports can be sent to you via e-mail or fax. They are also available through the Internet.

• Is there a fee for Electronic Check Recovery?
  read more No. You will receive the full face value of any check collected electronically. The check writer’s account is charged the state regulated NSF fee to cover the cost of collection.

• Is Electronic Check Recovery available for all checks?
  read more No. It iss only available for consumer checks under $2,500.

• What must I do to inform customers?
  read more You must notify your customers that returned items may be collected electronically. This notice can be placed at the point of sale or on a monthly billing statement. You will be provided with the materials needed to notify your customers

• Do I need any special equipment?
  read more No. You do not need to invest in any special equipment such as MICR scanners or imaging devices. These devices would normally cost $20 to $50 per month. electronic Check Recovery will scan your returned checks and make images of those checks available for you to view via the Internet.

• How & when does electronic Check Recovery provide reimbursement?
  read more Electronic Check Recovery will have the recovered funds directly credited to your account within a few business days after settlement This information will be sent to you every week, provided there is activity within your account. You will receive this report by e-mail or you can make an inquiry online. Reports may be faxed if necessary.

• How do I protect my business from bounced checks?
  read more Protect your company from returned checks by following these simple guidelines when accepting checks. Establish a check acceptance policy clearly defining acceptable forms of identification, required information and dollar limits. Allow no exceptions to these policies.
  • The check writer’s name, address, and phone number should be printed on the check. Make sure the written and numeral amounts correspond.
  • Watch the check writer sign the check. If the name is illegible, have the customer print the name below.
  • Compare the signatures, phone, and physical description of the identification with that of the check writer.
  • Verify that the identification is still valid. Check the driver’s license for signs of alteration or modification.
  • Most returned checks have low check numbers (100 to 500), which indicates a new account. These checks tend to be more risky, particularly for business or “dba” (doing business as) checks.
  • Other useful information on the check is the account’s opening date (month and year), usually indicated by four numbers to the side of the account holder’s name and address.
  • Do not accept third party checks.
  • The four digits following the magnetic ink character recognition (MICR) number at the bottom of the check should match the four-digit check number at the top right hand of the check.
  • All checks, except government checks, should have a perforation along one side of the check. Call the financial institution to confirm if funds are available, although this is no guarantee that the check will clear. It provides check collection services by re-submitting NSF checks electronically. As an alternative, these funds can be collected by duplicate paper draft, depending on your needs.

• Why should I use electronic Check Recovery?
  read more To get your money back from bad checks, Electronic Check Recovery strategically chooses when the check writer’s account is debited. The result - a substantial increase in recovery rates.

• Will CheckVelocity notify me when a check has been returned?
  read more No. However, you can view the image and track the status of any check in our system through our reporting platform — accessible 24/7 via the Internet. Deposit item fees and NSF return fees with electronic transactions are significantly lower than paper checks, so the size of the check doesn’t matter. Now you won’t have to worry about taking a $10 check and risking a much higher bank return fee if the check bounces.