Federal Reserve Board statistics indicate that approximately .9% (or 585 million) of the over 65 billion checks written per year are returned unpaid. Of that number, 80% are returned due to insufficient funds.As a first step into electronic check acceptance, many EnCircle customers have opted to begin by processing returned paper checks into ACH items. Businesses that utilize an electronic means of collecting returned checks may experience up to 60% higher collection rates. These significant improvements are the result of three factors.

  • Most financial institutions post ACH entries before check transactions, thereby increasing the probability of collecting the re-presented item.
  • The cost of creating an ACH debit is much lower than the cost of re-depositing the paper check - allowing small-value checks to be collected more cost effectively.
  • Businesses may target the exact date an ACH debit will be charged to an account, thereby allowing for more precise timing of the debit to the check writer's account.

EnCircle offers solutions designed to electronically manage returned check (RCK) processing requirements. These solutions allow financial institutions , check service providers , and merchants to enjoy the many benefits associated with electronic check processing.

Merchant Benefits for RCK:
  • Improves collection rates up to 60% over traditional paper check collection.
  • Automates the ability to electronically process return fees - eliminating the need for negative customer contact for return fee payment after a check is returned.
  • Further reduces losses by providing additional options for collection services .

Financial Institution Benefits for RCK:
  • Improves collections rates up to 60% on returned items received for credit card, mortgage, automobile, home equity, and other payments.
  • Reduces operating cost savings compared to paper check processing.
  • Lowers costs associated with monthly statement generation as there is no paper check to return.
  • Increases ACH volume and decreases paper handling requirements.
  • Improves competitiveness in the market by creating a new, high-value product to offer customers.

Consumer Benefits for RCK:

  • Improves speed at which return items are collected freeing up check writing privileges.
  • Automates check collection process requiring no additional payment arrangements to be made.

EnCircle RCK Solutions:


EnCircle's RCK product options have been designed for ease of use while keeping in mind the requirements of data integrity and security. All RCK product options offer web access for all data input and reporting giving the user full control over their individual check management needs. Automated return fee collection options are managed upon the origination of the RCK merchant account allowing both a flat rate fee or fee as defined by state.

 EnCircle is proud to deliver an array of RCK options, designed to meet your company's unique requirements. Whether you are looking for a complete "turn-key" service for check collection , or a specific return check processing service need, EnCircle is here to assist you.

  • Net RCK - Through the use of a convenient browser based service, EnCircle can process RCK items "real-time" into the EnCircle ACH host system. Net RCK processing service may be purchased with or without imaging or collection services.

  • Net RCK Silver Service: RCK Silver Service consists of the full-service, on-line data management of returned items without image requirements. If you are in need of a service that gives you the ability to process check items electronically without the added requirement of an image for check maker data retrieval, EnCircle's RCK Silver Service is for you.

  • Net RCK Gold Service: RCK Gold Service - RCK Gold Service offers customers the ability to receive the additional benefit of image data reporting through a turn-key service where checks are imaged at the point of entry and sent to EnCircle for archival and retrieval. With EnCircle's Gold Service, you can enjoy the many benefits of automated check handling and electronic retrieval fulfillment. This offering is especially popular with merchants using a third-party collection service whereby the check data needs to be remotely accessed for collection purposes.

  • Net RCK Platinum: RCK Platinum - RCK Platinum Service offers customers the additional benefit of collection services. When all attempts fail in collecting the check through the RCK process, EnCircle will manage the hard collection activity needed to recover funds for the returned check. Either image and non-image solutions are available through EnCircle's RCK Platinum Service.

  • Batch RCK services - Returned check items processed in batch may be sent to EnCircle for ACH processing via a direct communications link. Reporting for Batch RCK services will be provided via web access. Customized requirements for batch RCK submissions may be made available as defined by the user. Supplemental customized reporting may also be made available.

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