Frequently asked Questions 

Q: What is Electronic Check Representment (RCK)?

A: RCK refers to represented check entries or the process of resubmitting non-sufficient funds (NSF) checks electronically through the Automated Clearing House (ACH) Network.

Q: When was RCK approved?

A: In 1998, the National Automated Clearinghouse Association (NACHA) approved new banking interim rules that allow a merchant or agent to represent NSF checks electronically. The permanent rule became effective on September 15, 1999.

Q: How can merchants benefit from RCK?

A: RCK allows the merchant or agent to time the debit of the check writer's account. This alone can result in a substantial increase in recovery rates.

Q: Are there cost savings to the merchant?

A: Yes. Since everything is electronic, there are no redeposit fees charged to the merchant for resubmitting the checks electronically the second and third times. Additionally, there are no letters to write or phone calls to make to the check writer while attempting to collect on a bad check.

Q: How do recovery rates improve with RCK?

A: An increase in collection rates of 50%-96% over traditional collection methods has been reported by merchants using RCK.

Q: What legal regulations and guidelines apply to RCK?

A: 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.

Q: What types of checks can be represented?

A: Checks that indicate on the face that the check was returned due to "Non Sufficient Funds", "NSF", "Uncollected Funds", or comparable language.

Q: How many times can the merchant represent an item?

A: 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.

Q: Is there a dollar limit on checks submitted for representment?

A: Yes, checks with a face value of $2,500 or less may be processed.

Q: What must the merchant do to inform the customer?

A: The merchant must notify the customer that their return item may be collected electronically if the check is returned for insufficient or uncollected funds. A notice must be posted at the point-of-sale, on a receipt, or on monthly billing statements. We provide you with the point-of-sale notice.

Q: Is there a time limit on checks that can be represented?