How to deal with NSF checks.
A check may be considered bad for a few reasons, the check may be fraudulent in some manner, or the check may ‘bounce’ and be considered an ‘NSF’ (Non-Sufficient Funds) check.
It is easy for the check recipient or business owner to experience some form of agitation in such a situation, and in some ways, rightfully so. Though some checks may be bounced through simple human error, there are those that this will not be true for, and in these cases there needs to be not only accountability on the issuance end, but also a protective mechanism or mechanisms for the receptive end.
A bad check is an all around negative occurrence in business. The issuer of the check receives penalties to his or her checking account, while the recipient of said bad check is also penalized for accepting and thereafter submitting said bad check to their bank for deposit. These fees can quickly become exorbitant, not to mention that the recipient may only represent the check twice after the initial presentation to the bank.
In layman’s terms that means that when an individual unknowingly receives a bad check from another individual and deposits said check to receive compensation for the business transaction and there is not enough money in the issuers checking account to cover said fees, it is the onus of the receiver to cover the penalties incurred as a result of another’s actions.
A business owner has a few measures against bad checks. A business owner may seek the service of a check guarantee/check recovery company, who assumes the liability of a bad or NSF check for a predetermined fee. An alternative plan of action is to transfer or sell the check to a commercial collections agency, who will pay a percentage of the face value of the check to a business owner.
These options are great, but ultimately end with the business owner having to ‘foot the bill’ for another individual’s irresponsibility.
However, CheckMatic understands this issue, and seeks to recover the full check amount at no cost to the business owner, easing the worry and stress associated with accepting checks as payment, without alienating the customer.
