Are you paying too much to collect your bounced checks?

ChamberSolutions® has a better way!

In March of 1998, the National Automated Clearing House Association (NACHA) passed a new rule called Re-presented Check Entry (RCK) that allows checks returned for insufficient funds (NSF checks) to be recovered electronically. The process for recovering NSF checks simply involves converting the check into an electronic transaction and debiting the customer's account via the Automated Clearing House (ACH) network for the amount of the check plus the state allowed processing fee. This new form of collection revolutionizes NSF check recovery for all businesses that accepts paper checks.

To bring you the best that this new industry has to offer, ChamberSolutions has partnered with CybrCollect™, a pioneer and industry leader in electronic check collection. Since 1998, CybrCollect™ has provided the most comprehensive, technologically advanced check collection service for convenience stores, department stores, grocery stores, hospitals, pizza parlors, book stores, bowling centers, schools, fast food establishments, health clubs, pharmacies, restaurants, dry cleaners, pawn shops, specialty shops, government agencies, municipalities, utilities, and others that accept checks – at absolutely
NO CHARGE to the merchant!

With the CybrCollect™ program, you will never have to spend your time or money collecting NSF checks again!

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CybrCollect™ has a professional staff dedicated to personally contacting each financial institution every day to verify sufficient funds in the check-writer's account prior to electronic re-presentment. Only when the account shows a sufficient balance will a check be re-presented. Other collection companies claim to verify funds by computer search, but only about 4% of banks across the nation have the technical ability to report information in this manner. CybrCollect™ finds the check writer’s payday!

CybrCollect™ provides the most responsive customer service in the industry. Telephone questions are answered by friendly and knowledgeable customer service agents, who can actually help! Our customer service is superior to industry competitors. We always go the extra mile to earn and keep your continued business.

You don't have to be the one calling the check writer to demand your money! No more embarrassing confrontations with your customers. That, however, doesn't mean you forfeit control of situations where special customers have simply made a mistake… with CybrCollect™, you maintain complete control of your checks. If you want to handle the check yourself, make one toll-free call and CybrCollect™ will return the check right back to you.

Let CybrCollect™ absorb the time and expense of collecting those irritating bad checks for you. Let the experts help you, so you can get back to servicing your customers and increasing your profits!
No business is too small or too large. CybrCollect™ serves the small merchant just as efficiently as corporate America.

How much does it cost to take checks?

That can be a tough question. You also may ask, “How does that compare to my expense to take credit and debit cards?” CybrCollect™ can help you answer those important questions with our new Executive Analysis Report (EAR).

Program Overview

Check Collection

• 100% Free Check Collection Service to the Merchant
• The Bad Check Writer Pays the State Legislated Processing Fee
• Fast Electronic Recovery
• Daily Payment to Your Account
• Friendly Customer Service
• Instant Comprehensive Web-Based Reporting
• Daily Fraud Alerts on Bad Check Writers
• Full Face Value of the Check is Paid to the Merchant
• We Collect 88% of NSF Checks in 15 Days
• Our Average Time to Collect a Check is 6.2 Days
• We provide our service to over 7,500 merchants nationwide

Express Returns

Some banks charge as much as $35.00 per returned check to your bank account. Our Express Returns program can reduce or even eliminate your returned check fee from your bank. Here's how it works:

• We provide you with a special Express Returns endorsement to deposit your paper checks.
• When one of your checks that have the Express Returns endorsement bounces they are electronically sent to our collection system.
• The Express Returns checks are not returned to your bank. This eliminates your bank bounce fee.
• We begin the collection process 6 to 8 days faster when checks are returned from the Federal Reserve electronically.
• If you are an active Chamber member business, we even cover the cost of the Federal Reserve pass-through fee. You pay nothing! If you are not an active Chamber member business, we simply charge $2.00 per bounced check to cover our pass-through fee.

How the Process Works

a) Merchant signs bank release form notifying their bank to mail all returned checks to our processing center.

b) Signage is posted at the point-of-sale to notify the customers that their bank accounts will be electronically debited for the NSF check amount plus the State allowed processing fee.

c) You deposit all checks the way you normally do. Your Bank mails any returned checks directly to our processing center; or by using our Express Returns feature checks are automatically sent directly to us. Once there, the checks are converted to an electronic transaction and transmitted that day to the ACH network.

d) Checks that are NSF after the first re-presentment will be sent through a second time, after funds availability has been determined. (Note: NSF checks may be re-presented two times electronically.)

e) You are paid daily on all NSF checks recovered electronically.

f) Activity reports are emailed or faxed daily, or mailed weekly, to keep you updated on the status of all your checks.

g) Checks not collected electronically are sent a demand letter from CybrCollect™ and then forwarded on to secondary collections, 30 days later. Upon collection we will send you 100% of check amount. (Most of our competitors charge 25% - 50% of the check amount for this added service.)

CybrCollect™ Offers the Best Web-Based Reporting

• Client History Report
  View your client history based on a specific date range you enter.
• Unpaid List
  View checks that are currently unpaid.
• Checks Received
  Review new returned checks based on a specific date range. View and print check images. Send us updates regarding the customer.
• Checks Collected
  Review checks collected within a specific date range. View and print check images.
• Check Alert
  Print a report of all check writers in the database who have passed closed accounts within specific zip code and date ranges. Import the Check Alert report into your cash register.
• Bank Reconciliation
  Create a bank reconciliation report to facilitate reconciliation of your bank accounts.
• Check Search
  Search for specific checks based on the check writer’s partial name.
• Download Information
  Download collection information for viewing and manipulating with Microsoft Excel®.

Why is CybrCollect™ Better Than the Competition?

• Great customer service.
• Proprietary software that identifies checks with a high probability of being collected the same day they are received.
• An in-house collection technique that most competitors don't use. Industry insiders have compared our results to competitors who don't use our technique and found that our success rate is 25% higher.
• Special nation-wide banking arrangements that get the bad checks into our hands 5-7 days sooner than our competitors can get them.
• When you combine this with our daily fraud alerts, you can cut off bad check writers a week before anyone else!
• Our Express Returns bank fee reduction program drastically cuts or even eliminates your returned check fees.

FAQ's

Q. What happens if one of my good customers bounces a check?
A. Call us toll-free and tell us to drop the fee. Your customer will not be charged a fee.

Q. How does the Daily Fraud Alert work?
A. Each day our system scans our database for people who have written three bad checks in the last 30 days. It then sends an email or fax warning to any customer who has taken a check from that check writer.

Q. Will CybrCollect service work in my state?
A. We can electronically debit accounts in all 50 states for checks written on any bank in the Federal Reserve System.

Q. Do I need check verification or check guarantee?
A. From a cost/benefit stand point, only about 15% of businesses actually save money this way. After you use our free service for three months, we will analyze your account and tell you if check verification or check guarantee will help.

Q. How do we collect on closed accounts?
A. Closed Account checks, Stop Payment checks and checks over $2,500 are collected by our affiliate attorneys at prominent national collection law firms, and the bad check writer pays the legal fees.

Q. How do I get paid for the checks you collect?
A. We electronically deposit the funds for checks we collect into your bank account every day. If you prefer paper checks we will mail you a check for the funds weekly.

Q. What happens if the check is not electronically collected within 30 days?
A. A collection letter is sent to the check writer and then the checks are sent to our national affiliate collection law firms at no charge to you.

Q. What can I do with the NSF checks I currently have?
A. Send them to us. These are considered pre-contract checks. We will send a letter to the check writer and forward them to one of our affiliate collection firms at no charge to you.

Q. I know this is a new program, but what has your track record been so far?
A. CybrCollect™ is an industry leader and pioneer in Electronic NSF Re-presentment. We have collected hundreds of thousands of checks since 1998. With an average time to collect a check at about 6 days and a 15 day collection rate of 88%, we are one of the leaders in our industry.

Q. How have Customers reacted to this System?
A. Customer reaction has been very good. Of course, there is some adjustment on their part but complaints have been minimal. In fact, customers grow to like this collection method because they do not have to come in and face you with cash in hand to redeem an NSF check. And, their check writing privileges are restored faster since their NSF is cleared faster.

Q. Are there restrictions to the type of checks?
A. Yes, there are some restrictions.

Ineligible Items

Items that are ineligible for transmission as represented check entries include, but are not limited to:

• Non-cash items (as defined by Section 229.2(u) of Federal Reserve Regulation CC)
• Drafts drawn on the Treasury of the United States, a Federal Reserve Bank, or a Federal Home Loan Bank
• Drafts drawn on a state or local government that are not payable through or at a Participating DFI
• United States Postal Service money orders
• Items payable in a medium other than United States currency
• Items which are third party items
• Demand drafts and third party drafts that do not contain the signature of the Receiver
• Checks in excess of $2500
• Checks drawn on a business account

Eligible Items

In order to be eligible to be transmitted as an RCK entry, the check must:

• Be an item within the meaning of Revised Article 4 of the Uniform Commercial Code (1990 Official Text)
• Be a negotiable demand draft drawn on or payable through or at a participating DFI other than a Federal Reserve Bank or Federal Home Loan Bank
• Be in an amount less than $2,500
• Indicate on the face of the document that it was returned for insufficient funds or uncollected funds
• Be dated less than 1 80 days from the date the entry is transmitted to the RDFI
• Be drawn on a consumer account

More Information on Electronic Re-presentment

The 1998 NACHA ruling for re-presenting NSF checks through the ACH network
News Release
Returned Checks Can Now Be Collected Electronically, NACHA Announces

Seattle, WA, March 10, 1998-The National Automated Clearing House Association (NACHA) announced today that its Board of Directors has approved a "rule" for the electronic collection of checks returned for insufficient funds (NSF). Checks that have been returned unpaid for NSF can now be collected through the Automated Clearing House (ACH) Network, the network that allows financial institutions to exchange payments on behalf of business customers and consumers. NACHA announced the new rule at it PAYMENTS 98 conference in Seattle.

Keith Theisen, Vice President of Norwest Bank, led the NACHA Rules Work Group that developed the rule. He said, "The collection of returned checks through the Ach Network can bring substantial cost and time savings to businesses, consumers and financial institutions. Respondents to the group's request for comments estimate that costs associated with re-presenting an NSF check can be reduced by up to 50 cents per check for businesses, and one dollar per check for financial institutions. Lower costs also make the collection of small-value checks more cost-effective." In addition, NACHA projects that the rate of successful collection could increase by 25 to 50 percent.

Consumers will benefit from the new provision, too. Hal Piotrowski, Vice President of Charter One Bank and the Chairman of NACHA, said, "Use of the new ACH check collection transaction will result in quicker removal of negative information from check verification databases, which many merchants use to screen out bad check writers. This means that consumers will be able to write checks again sooner."

Currently, returned checks that are to be "re-presented" must be physically sent through the check clearing system in order to be collected. The new NACHA rule allows this re-presentment to take place over the ACH network.

The new rule creates a new Standard Entry Class Code - RCK (for Re-presented Check Entry)- under NACHA's Operating Rules for the ACH Network. The RCK code provides a method to initiate and ACH debit transaction in place of a paper check, after the original paper check is returned for insufficient funds. The RCK rule becomes effective September 17, 1999.

Steve Shutze, Senior Vice President of NationsBank said, "The new Represented Check Entry transaction was created in response to the needs of businesses that need faster and more successful collection of returned checks."

The NACHA Board also approved an interim rule, effective September 18, 1998 through September 16, 1999, to allow ACH participants to use the existing Pre-authorized Payment and Deposit (PPD) Standard Entry Class Code to initiate these transactions.

The RCK rule requires businesses who plan to collect returned checks electronically to notify check-writers, at the point of sale or on monthly bills, in a manner to notices currently required for collection fees.

About the National Automated Clearing House Association (NACHA)

NACHA, located in Herndon, Virginia, represents more than 13,000 financial institutions through its 35 regional ACH associate, six councils and corporate Affiliate Membership program. A leader in the payments industry, NACHA develops operating rules for the Automated Clearing House (ACH) Network and for emerging electronic payment solutions in the areas of Internet commerce, bill payment and presentment, financial EDI, cross border transactions, electronic checks, and electronic benefits transfer. NACHA produces marketing collateral and technical publications, and provides extensive education services, including major conferences and seminars. Visit NACHA on the Internet at www.nacha.org.