Returned Check Collections (RCK)

Returned Check Collections (RCK) Defined
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.

Returned Check Collections (RCK) Fees
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.