Frequently asked questions.
Q: What are your fees?
A: None -- ever!
Q: Will I have to change anything to use InsuraCheck?
A: No. With InsuraCheck, your bank forwards your checks directly to us when they bounce
Q: Can InsuraCheck provide check verification?
A: Yes. We have verification machines available if necessary and some of the lowest per transaction fees available.
Q: Does InsuraCheck provide both electronic check re-presentment and traditional collection?
A: Yes. Once we have exhausted our efforts to collect checks electronically or a check bounces for any other reason than NSF (non-sufficient funds), they are forwarded to our affiliated attorneys where they attempt to collect checks through traditional means (letters, phone calls, etc.) You are paid 80% face value for any check collected this way.
Q: How do I know what the attorneys have collected and when do I receive those funds?
A: Our affiliated attorneys send our clients a report on or around the fifth of every month for the previous month’s activity. They send you a status report of every check that they have in the system along with a check for all checks collected as well as any rebate you are allowed.
Q: How will InsuraCheck notify me that a check has been returned?
A: This information will be on your weekly report that you can receive by fax, email, standard mail, or are available online.
Q: How and when does InsuraCheck provide reimbursement?
A: By direct deposit, every week.
Q: How much volume is required for InsuraCheck services?
A: There is no minimum.
Q: Will InsuraCheck provide references?
A: Yes. Please contact us for more information.
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Questions from Merchants
Q: What does InsuraCheck do?
A: InsuraCheck provides check collection services, resubmitting NSF checks electronically through the ACH network.
Q: How much does InsuraCheck cost?
A: Nothing! The customer will be informed of the collection process, and will authorize electronic collection before paying you with a paper check. Our program works conveniently and quickly for you and your customers.
Q: Then how does InsuraCheck make money?
A: The cost of recovery -- our income -- is paid by the check writer from state-authorized collection fees.
Q: Why should I use InsuraCheck?
A: To get your money back from bad checks. InsuraCheck strategically chooses when the check writer’s account is debited. This alone can result in a substantial increase in recovery rates. Whether you get one bad check a year or one a day, why spend your valuable time trying to collect bounced checks when InsuraCheck will do at no cost to you.
Q: Will InsuraCheck save me money?
A: Definitely! You save money just by having us work for you. You see, most banks attempt to collect a check twice therefore charging you those “return item fees” of typically $10 or more, twice. With InsuraCheck in place, the bank only attempts it once and only charges you once, an immediate savings! They then forward the check to us where we charge you nothing to attempt the check two more times. And that’s before we even start collecting for you.
Q: Will InsuraCheck save me time?
A: Absolutely! We handle the entire collection process, so you don’t have to write letters or make phone calls to check writers. We make reimbursements automatically every week, and send you regular reports by fax, email, or standard mail.
Q: What if I don’t have e-mail?
A: We still deposit your reimbursements directly to your account, and send your reports by fax or mail.
Q: What if a good customer or employee bounces a check?
A: Call us right away, and we will remove the check from our collection process -- or you can access your account online and do it yourself. We recommend that you retrieve the money before you pull the check from the collection process.
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Questions from Your Customers
Q: Who can electronically debit my account for an NSF check?
A: Specially licensed and approved merchants, billers and financial institutions can debit your account electronically for returned checks. However, they must notify you prior to receiving your check.
Q: What if I was not notified of the InsuraCheck process?
A: You may sign an affidavit with your financial institution that you did not receive notice. Your account will be credited any fees that were assessed.
Q: Will I receive my paper check in my monthly bank statement?
A: No. The check is either retained by the collecting company or returned to the merchant.
Q: Can I decide how the NSF check is re-presented?
A: No. The merchant, biller or financial institution can re-present the check on paper or electronically.
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Nuts and Bolts
Q: What type of checks can be re-presented?
A: Any returned check that indicates on its face “Insufficient Funds,” “Uncollected Funds” or comparable language.
Q: How many times can an item be re-presented?
A: A total of three (3) presentations are allowed.
Q: Are any items ineligible for re-presentment?
A: Yes. Here are the kinds of checks we can not collect:
- A draft drawn on the U.S. Treasury, a Federal Reserve Bank or a Federal Home Loan, Bank or state or local government.
- A U.S. Postal Service money order.
- An item not payable in U.S. currency.
- An item indicating on its face that it was returned for reasons other than insufficient funds uncollected funds or comparable language.
- A check over $2,500.
- A third-party item.
- An unsigned demand draft.
- A check that is more than 180 days old.
Q: Who gets the paper check when the InsuraCheck process is initiated?
A: InsuraCheck does. Copies are available to our customers upon request
Q: What must a merchant do to inform customers?
A: Merchants must notify customers that returned items may be collected electronically. This notice can be on a sign at the point of sale, or on a monthly billing statement.
Q: What legal rules apply to InsuraCheck?
A: On March 10, 1998, The National Automated Clearinghouse Association (NACHA) approved new banking procedures that allow merchants to re-present NSF checks. The rule became effective September 18, 1998.
All our operations, including re-presented check entries, are subject to applicable NACHA operating rules, uniform commercial codes and regulations. Because InsuraCheck transactions are originated by check, they are exempt from the provisions of the Electronic Funds Transfer Act and Regulation E.
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