Not Registered? Create a New Account

Home arrow FAQs arrow FAQ Index

Frequently Asked Questions & Answers

FAQ Index

Check Recovery

Frequently Asked Questions about Check Recovery

Found 17 entries

Questions in this category:

Questions & Answers

Is there a minimum or maximum number of checks that IPS will handle for us? [top]Up
No. 1 check per month or 10,000 checks per month it does not matter. IPS can handle any volume of returned checks your company produces. We do not have one standard of service for major accounts and another for small accounts. We treat all our business partners the same- with excellence.
Is there a set-up charge? [top]Up
No. We never charge any fee for setting up your business. There are no hidden costs.
How much does your service cost? [top]Up
It is FREE, that’s right I said it’s FREE. Actually, after we remit 100% of the face value of the recovered check to you, in many states, IPS will pay you a rebate on each check we recover to help you offset any fees your bank charged you for the returned item. The rebate varies according to what state your business is in. If we are only able to collect the check amount but not the service charge, you will still be paid the full face value of the check.
If your service is FREE how does IPS make money? [top]Up
Great question. IPS believes the burden of paying for our services should be paid for by the bad check writer - not you. When we recover the face amount of the check we also charge the bad check writer a fee, which is allowed by state law. IPS puts that fee in our pocket to keep our lights on. Simply stated, if we don't recover we don't get paid, so guess what, we have gotten real good at recovering.
Can you handle my out-of-town checks? [top]Up
IPS can recover checks from virtually every bank in the United States. Your out-of-town or out-of-state checks are recovered with the exact same timing as your local checks. Remember this is all electronic, so every check we receive today gets posted against the bad check writer tomorrow no matter where he lives in the U.S.
Does IPS do check verification? [top]Up
Yes. Check verification is not required for us to do your recoveries.
Can IPS channel all correspondence to my corporate headquarters instead of each individual store? [top]Up
Yes, this actually simplifies the process. We can still provide reporting to your corporate office for any individual store, region or district.
My bank normally re-deposits my returned checks. Is this best for my business? [top]Up
Automatic re-depositing of checks is a great idea for the banks, but it is a bad idea for your business. When a bank re-deposits the check, it bounces again the majority of the time. Your customer is charged another returned check fee from the bank, and your business is charged another deposited item return fee from your bank. These fees quickly add up, and now the customer may not have the money to pay for your checks for some time. Banks always pay their fees before they pay merchant's checks, so any deposits the customer makes are quickly gone. If the account has too many problems the bank will close the account, making further bank collections impossible. The bottom line is, the quicker IPS can receive the bad check the better off everyone is, except for the bank.
Is it legal to collect checks electronically? [top]Up
Yes. National Automated Clearinghouse Association (NACHA) approved the new banking interim rules that allow a merchant or agent to re-present NSF checks electronically in 1998. The permanent rule became effective on September 15, 1999. Banks must accept the electronic transaction. By the way, electronic checks take precedence over paper checks and this gives IPS another advantage.
What type of notice is required to customers? [top]Up
The customer must be notified at the point of sale that in the event that his check is returned unpaid that his check will be turned into an electronic debit and the state allowed returned check fee charged by IPS. IPS provides this signage for free to post at each checkout register. They must be displayed where they can easily be seen.
Will my customers like electronic check recovery? [top]Up
Yes. Your customers will be pleased to have a convenient way to settle the problem without receiving embarrassing collection telephone calls or letters from you.
What checks are eligible for electronic check re-presentment (RCK)? [top]Up
Personal checks returned as either insufficient funds (same as non-sufficient funds) or uncollected funds are eligible. They must be less than $2,500.
Which checks are ineligible? [top]Up
Checks unable to be processed utilizing this electronic method are WIC checks (Women with Infant Children), third party, payroll, government, and personal checks over $2,500.
Is electronic check recovery more effective? [top]Up
Yes. Recovery rates increase as much as 50%, resulting in a very high recovery rate for NSF checks, usually between 75%-90%.
When and how fast do I receive my money? [top]Up
You could have your money in as little as ten days after we receive the check in our office. We must allow a few days for the electronic transaction to process. Checks that do not clear the first re-presentment, or checks that must be collected through traditional collection methods usually take a little longer. However, you will always be paid within 5 days of the date we receive payment.
How soon can I begin using Innovative Payment Solutions? [top]Up
After we receive both your Authorization Agreement & Account Agreement forms, we will immediately send you the required signage explaining the returned check charge and notification of recovery through electronic means. This process will take less than a week.
We have a stack of old unrecovered checks, will you try to recover these? [top]Up
Absolutely. You must realize that recovery rates on these old checks will be much lower then recovery on new checks. IPS will do our best to recover them.

Call IPS Toll Free Today 1-866-477-2432