One of the easiest ways to manage NSF check collection needs is a NSF check collection service. Outsourcing NSF check collection eliminates the need to write collection letters to NSF check writers or make embarrassing phone calls. NSF check collection services are used by more and more non profit groups, school corporations, small and large businesses since they can greatly reduce labor and operating costs.
Now there are several NSF check collection services and some things have become standardized. It is now possible to find a check collection service that returns the full collected face value back to businesses on every NSF check. This is possible because of the NSF check handling fee charged to bad check writers. Many NSF check collection services are also members of NACHA (the National Automated Clearing House). Another key part of NSF check collection is RCK (electronic check re-presentment). RCK check collection not only helps increase the number of collected NSF checks, it is a faster process than traditional NSF check collection methods. Ideally RCK will be combined with traditional recovery tools to maximize recovered lost profits from NSF checks.
In the NSF check collection industry there is a lot of competition; some NSF check recovery services are small start-up companies that may or may not have been in business very long. I have actually had businesses call me and tell me they tried to reach their NSF check collection service by phone and no one answered. A little later they learned their check collection service had closed without warning. While there are many providers for NSF check collection, some of them are not established collection services and may not be around tomorrow, next month, or next year.
If you are thinking about using a NSF check recovery service, it should offer some type of reporting feature. In addition to asking about this, you should inquire about what bad check writers receive. How many collection letters will they receive? Is an image of their NSF check on the letter? How can the NSF check writer pay off his or her debt? What happens if they refuse to pay? What if the check is not NSF (stop payment or closed account). If you accept e-checks, can the check recovery service offer e-check collection? Be sure to also see if the check recovery service works with all U.S. states or is limited to just one or a few states.
In dealing with NSF checks many wonder about using a "check guarantee service." Unless your business typically receives checks that amount to several hundred dollars, a check guarantee service is usually a very bad business decision. A NSF check collection service can usually be signed up for with a simple agreement and that is all that is necessary to begin the process. Banks will typically forward NSF checks directly to the NSF check collection service or you may be given the option of sending in which checks you want to submit for collection. NSF check collection services are a simple but powerful (and important) part of modern American life.
If you have any questions about NSF check collection that are not answered here, please contact me (Brad Price) at (574) 875-9994 or e-mail.
NorthStar’s NSF check recovery service is available for any business in
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan,
Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New
Hampshire, New Jersey, New Mexico, New York, North Carolina, North
Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South
Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,
Washington, West Virginia, Wisconsin, Wyoming.