What is RCK?
RCK refers
to represented check entries or the process of resubmitting
NSF checks electronically through the ACH Network.
When was RCK approved?
NACHA (National Automated Clearinghouse
Association) approved the new banking that allows merchants to
represent NSF checks electronically on March 10, 1998. The
rule became effective on September 18, 1998.
How can merchants benefit from RCK?
RCK or Electronic Check Re-presentment allows the
merchant or agent to time when the check writer's account is
debited. This alone can result in substantial increase in
recovery rates.
Are there cost savings to the
merchant?
Yes, since everything is electronic,
there are no redeposit fees charged to the merchant for
resubmitting the checks electronically. There are no return
fees on NSF checks that are returned a second time.
Additionally there are no letters to write or phone calls to
make to the check writers attempting to recover the bad
checks.
What can a merchant expect in
improvement of recovery rates with electronic check
representment compared to traditional methods?
Merchants using RCK have reported increases in
recovery rates from 30% to 85%.
What legal regulations and
guidelines apply to RCK?
RCK entries are subject
to the applicable NACHA Operating Rules, Uniform Commercial
Codes (UCC) and Regulation CC. However, RCK transactions are
originated by check and are therefore exempt from the
provisions of the Electronic Funds Transfer Act and Regulation
E.
What types of checks can be
represented?
Checks that indicate on the face
that it was returned due to "Not Sufficient Funds", "NSF",
"Unrecovered Funds" or comparable language.
How many times can the merchant
represent an item?
A total of three (3)
presentments are allowed. The RCK entry can be sent twice if
there was only one previous physical presentment, but only one
time if there were two physical presentments.
Is there a dollar limit on checks
that can be recovered?
Yes, checks with a face
value of $2,500 or less may be processed.
What must the merchant do to inform
the customer?
The merchant must notify the
consumer that their return item may be recovered
electronically if the check is returned for insufficient or
unrecovered funds. Notice should be contained on a sign at the
point-of-sale, or on the monthly billing statement for billing
firms.
Is there a time limit on checks that
can be represented?
Yes, each RCK entry has a
time limit of 180 days from the date of the check.
What items are not eligible for
representment?
Drafts drawn on the Treasury of
the U. S., a Federal Reserve Bank or a Federal Home
Loan Bank or state or local governments.Postal
Service Money Orders.
Items not payable in U.S. currency.
Items indicating on its face that it was returned for
reasons other than "Not Sufficient Funds", "NSF", "Unrecovered
Funds" or comparable language.
Checks drawn on business
accounts.
Checks over $2,500.
Third Party items.
Unsigned demand drafts.
Is the merchant allowed to charge
the check writer a fee for RCK processing?
A processing fee may not be added to the amount
of the RCK entry, it should be submitted as separate
transaction.
After a check is determined to be NSF,
who retains the paper check when the RCK is initiated?
The Originator, the processor or
the ODFI retains the paper check. Copies may be requested from
the merchant or processor via written request.
How do I, as a merchant, sign up for
RCK?
Just contact
CheckSavers.
