How long does Electronic Check Recovery work an NSF check before it is determined to be uncollectable?
By regulation there can be three attempts to collect an amount due, including the attempts made with the original paper check. So if it is sent to the processing center after the first presentation, the processing center then has two attempts left to recover the funds electronically through the ACH process. When checks are received from a merchant’s bank, the processing center automatically originates an ACH transaction to debit the check writer’s account. If the ACH transaction is returned NSF, the processing center will start calling to verify funds before originating another transaction (the last attempt).
Related Questions
- If the bank sends a return NSF check after first presentation to Electronic Check Recovery, how do they notify the merchant?
- How long does Electronic Check Recovery work an NSF check before it is determined to be uncollectable?
- How are we notified of Returned (NSF) Checks using Electronic Check Recovery?
