RCK FREQUENTLY ASKED QUESTIONS
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What is RCK? |
RCK refers to re-presented check entries or the process of resubmitting NSF checks electronically through the ACH network.
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When was RCK approved? |
On March 10, 1998, the National Automated Clearinghouse Association (NACHA) approved a new rule that allows merchants to re-present NSF checks electronically. The rule became effective on September 18, 1998.
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How can merchants benefit from RCK? |
RCK or Electronic Check Re-presentment allows the merchant or agent to be able to time when the check writer’s account will be debited, resulting in substantially increased recovery rates.
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Does RCK allow cost savings for the merchant? |
Yes, since everything is electronic, the typical fee that is charged by the bank is eliminated. There are no return fees on NSF checks that are returned a second time.
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How does RCK collection compare to traditional methods? |
Merchants using RCK have reported increases in recovery rates over traditional methods of 30% to 50%. RCK sees an overall collection rate of 85 – 90%.
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What legal regulations and guidelines apply to RCK? |
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.
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How many times can the merchant re-present an item? |
A total of three (3) presentments are allowed. The RCK entry can be sent twice if there was only one previous physical presentment of the paper check.
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What must the merchant do to inform the customer? |
The merchant must notify the consumer that their returned item may be recovered electronically if the check is returned for insufficient or un-recovered funds. Notice should be contained on a sign at the point-of-sale, or on the monthly billing statement for billing firms. In order for a fee to be collected, a stamp containing the proper language must be stamped on the back of the check above the endorsement line and must be signed by the check writer at the point-of-purchase.
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Is there a time limit on checks that can be represented? |
Yes, each RCK entry has a time limit of 180 days from the date of the check.
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What types of checks can be re-presented? |
Checks that indicate on the face that it was returned due to “Not Sufficient Funds”, “NSF”, “Un-recovered Funds” or comparable language.
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What items are not eligible for re-presentment? |
Drafts drawn on the Treasury, the U.S. Federal Reserve Bank, Federal Home Loan Bank or state and local governments. Postal Service Money Orders Items not paid in U.S. currency. Items indicating on their face that they were returned for reasons other than “Not Sufficient Funds”, “NSF”, “Un-recovered Funds” or comparable language. Checks drawn on business accounts. Checks over $2,500. Third Party items. Unsigned draft demands.