NACHA stands for the "national automated clearing house," and it is a term you may want to know if you are looking for a NSF check collection service. In September of 1998 NACHA made a rule that allows NSF checks to be cleared electronically (RCK). A person who wrote a check can have their account checked for funds and those funds can be "grabbed" if certain conditions are met.
A NSF check collection service typically converts NSF checks into electronic transactions. This is usually fast an inexpensive for them, and it very good collection tool in the recovery of NSF checks. If you choose to use a NSF check collection service that offers RCK check processing (and you really should), be sure they give you "disclosure" stickers so your customers are aware of what will happen if they write NSF checks. Warnings stickers refer to both the electronic transaction as well as your state NSF check fee (www.bumchecks.com/statefees). Customers usually like RCK check collection; it does cost them a little money (the state bad check fee), but it saves them embarrassment and time (they do not need to again visit your business to pay off a bounced check).
Bear in mind that some NSF checks cannot be processed with RCK recovery efforts. Reasons RCK check collection cannot be used include:
1. The check is not NSF (non sufficient funds)
2. The face value is more than $2,500
3. Third party items
4. Business checks may be prohibited
5. Checks not payable in American (U.S.) dollars
6. Government checks (from both the federal and state)
7. RCK items may only be presented twice--there is no "third or fourth" presentation of them.
8. If an item is more than 180 days old, RCK is also not allowed.