Reducing Returns for a Fortune 500 Company through ACH Verification and Electronic Recovery
CLIENT: One of the largest national pay television companies (The Company)
CHALLENGE: One of the largest North American pay television providers needed to mitigate its exposure to returned checks. The Company had a very high percentage of ACH/EFT payments that were classified as administrative returns (unable to locate, invalid account). CheckVelocity was able to deliver an integrated solution already used by three of the top five largest pay television providers as well as many financial institutions nationwide.
SOLUTION: The Company fully integrated CheckVelocity’s front end verification service into its web, IVR, and CSR payment systems. The Company now stops payments that would have returned.
Electronic recovery was also utilized to improve the Company’s back end collection process.
RESULTS: ACH/EFT Return volumes were reduced by over 65%. Each month, CheckVelocity stops over $60 million in payments that would have returned.
Non-paid disconnects have been reduced and are addressed more quickly as customers are declined when they attempt to make a “bad” payment and directed to alternate methods (credit card).
Collection efforts and costs have been significantly reduced. Phone calls, collection letters, and disconnection costs and equipment loss have all decreased.
Bank fees are now eliminated from deposited items that would be subsequently bounced.
As a fully automated process, reconciliation is automatic with no manual adjustments.
With electronic recovery, collection rates on NSF payments (both paper and electronic) have improved from 35% to 70%.