Returned Check Collection Keeps the Funds Flowing In

Many retailers limit themselves in customer payment options for practical reasons. Acceptance of checks as payment brings with it the risk of bad checks. Most businesses contract with a returned check collection agency for recovery of these funds. Whether your business is education, healthcare, local retail, or large chain, there are different types of check recovery than the standard collections agencies, which usually do a lot more than processing bad checks. This lack of specialization actually causes a reduction in service, but you have another option.

Rate of Recovery is focused solely on their role as a returned check collection company. As a result, you will enjoy many benefits beyond other collection agencies. The most important for most owners of larger businesses is the rate of recovery. Collection agencies typically return around 40-50 percent of funds. You can calculate this by looking at your historical losses with your present company or asking them for this statistical data. A tight focus on bad checks alone makes it possible to achieve 70-80 percent reimbursement.

Recovery Cost

Another downside of collections is the cost. Merchants usually pay a percentage of the recovery to the collector. The collector, of course, is also paid the recovery fee out of bank charges for returned check fees. does not charge the merchants for returned check collection.

Small Business Lock-out

Some small businesses actively choose to handle bad checks on their own. The customer base is small and trusted enough that a returned check collection service is unnecessary. Others, however, are actually blocked from using traditional collections services by industry minimums. Most services require a minimum number of checks each month for an active account. They sometimes put stipulations on the minimum amount of the check as well. Sole dedication to check recovery gives small businesses another option.


Many businesses now manage their finances completely online. You will have the same convenience with an online account showing your check history, active processing, and return totals over time. Funds are deposited directly each week, and a returned check collection statement is available for paper record requirements.

Comments or questions are welcome.

* indicates required field
No Spam Guarantee: We will not sell or rent your name or contact information to any third party.
verified secure