The iSmartCheck™ Check Authorization Tools are extremely effective at dramatically reducing returned items, however as a national average ¼ of 1% (“0.25%”) of checks are returned by the check-writer’s bank unpaid, the most common reason being for insufficient funds. Even though this is a nominal amount of loss compared to losses incurred with other payment methods, iSmartCheck™ offers services that will further reduce or completely eliminate your losses.
iSmartCheck™ Collections Service on average, collects around 80% or better of returned items within the first 30 days, and then around 30% of the remaining balance after 30 days, reducing your loss to an extremely negligible level (average 3.5 cents per $100 processed).
If you elect to use this service, all your returned items are routed to our fully integrated collection company partner that will mail and call the bad check-writer and reschedule re-presentment of the check at a time when the item is most likely to clear their account. The collection company will charge the bad check-writer the returned item fee allowable by their state of residence.
If the re-presentment is returned, they will call again to schedule another re-presentment, only this time they will warn the bad check-writer of the punitive damages allowable by state law that they will incur if the item is not paid within 30 days of the original check date. These damages can be more than 300% of the face value of the check, on top of the face value.
Typically, around 80% of returned items are collected with the first 30 days. However, uncollected items are then routed to “legal” collections where they will pursue the additional damages allowable by state law. Legal collections may win a judgment against the bad check-writer, and subsequently garnish wages, place liens on assets such as homes, vehicles and businesses and otherwise collect the debt.
Once the funds are collected, the collection company will reimburse you for 100% of the face value of the check, and will not charge you for this service.
100% Check Payment Guarantee is a real-time, online service offered to merchants who wish to be paid on all items regardless of the final disposition of the item. Our check guarantee partner will pay you 100% of the face value of the guaranteed check within 2 weeks of the check date.
This service is well suited for merchants who have a large number of new customers, ship expensive items, or who simply want to mitigate all risk.
Check guarantee services are provided by leading, financially sound corporations whose primary business is check authorization, risk management, collections and check guarantee.
The cost for this service is determined by the check guarantee company, not iSmartCheck™, and is based upon the level of risk associated with the transactions as determined by the check guarantor.
Please contact us for more information.
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