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Returned Check Collections
(RCK)
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Returned
Check Collections (RCK) Defined |
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RCK stands for
Returned Check Collections and means the
conversion of a PAPER CHECK into an Electronic
Truncated Check Transaction for submission for
clearing to the ACH Network.
The Basics of
RCK:
- The RCK
merchant provides their local bank with
written instructions to a) present
all checks only one time, and b)
forward all returned checks to the
merchant’s RCK processor.
- Signage is
installed at the Point of Purchase
stating that returned checks will be
collected electronically, and that a
returned check charge will be assessed
electronically if the check is returned.
- The
merchant’s RCK check processor will
convert the items received from the
merchant’s bank using an
imager/reader device; the resulting data
is formatted into ACH transactions.
- More
sophisticated ACH Processing Engines will
time the submission of RCK items so that
they will hit the checkwriter’s
account on a payday. Sometimes the
processor will call to verify funds prior
to presenting an item, but this feature
is usually reserved for ticket sizes
exceeding $50.00. Items that are returned
will be re-presented on the following
payday for another chance to clear.
- Merchants
are paid the Full Face Value of the
collected items about twice monthly by
direct deposit to their local bank
account.
- Merchants
are not charged for this service; the RCK
processor makes their money by submitting
an additional Collection Fee transaction
to the checkwriter’s account AFTER
the original item has been collected
successfully. The fee amount is usually
the maximum allowed in the state that the
merchant is conducting business in
(merchant’s home state, not the
customers location).
- Merchants
receive reports on all of the collection
activity, and some processors provide
this reporting on the internet.
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Returned
Check Collections (RCK) Fees |
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Merchants are not charged
for this service; the RCK processor makes their
money by submitting an additional Collection Fee
transaction to the checkwriter’s account
AFTER the original item has been collected
successfully. The Collection Fee amount is
usually the maximum allowed in the state that the
merchant is conducting business in
(merchant’s home state, not the customers
location). Merchants are paid the full face value
on all successfully collected items. The merchant
simply signs an agreement with his bank asking
them to only present checks once, and if they are
returned, to send them to the RCK Processor.
There should be no application, set up,
programming, statement, monthly minimum,
discount, per item fees , or any other Fees
charged. No equipment Required.
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