Modern technology offers customers a wide variety of ways to pay for merchandise.  From credit card payments to electronic payment services such as PayPal, people have several options to make purchases “in person” as well as over the Internet.

Although payment options have substantially increased over the last several years, a lot of businesses still receive old fashioned paper checks for payment.  People write checks for local utility bills, cell phone services, car payments, and a wide variety of other monthly bills.  Many merchants prefer personal checks for two reasons:  (1) not many of them bounce, (2) checks that are returned from the bank can usually be collected, (3) it is possible to outsource bad checks to a returned check collection service.

Small and large businesses throughout the United States often turn to a “NSF check recovery service” or a “bounced check collection service” to collect their bad checks.  These services have some standard features such as collection letters and RCK check recovery (electronic check collection or “check re-presentment).   Most if not all these services are primarily funded by something called the “state bad check fee”.  Merchants charge bad check writers for the face value of the bounced check plus the small state fee.  By processing hundreds of checks per month or thousands of checks per year, a check recovery can use the profit from the state bad check fee to make it service very inexpensive or almost free.

Some bad check collection services will only process NSF (non sufficient funds) checks.  There are also those that may limit their check collection service to one or just a few states.  Other check collection services are literally “full service agencies.”  They not only accept NSF checks for collection, but they will also process stop payment and closed account checks.  In a few cases businesses may be able to find a collection service  that not only had a collection service for bounced checks but offers other debt collection options—options such as medical collections, accounts receivables collections, professional collection letters, NSF check collection, accounts receivables collection, medical collection service, bad check restitution program etc.

For more information about collection agencies, bad check collection, and accounts receivables collection, please visit my web site (www.bumchecks.com) to find a list of companies that provide a nationwide bad check collection service.

 – Brad Price, www.bumchecks.com