When considering the cost of bouncing a check it is important to consider all sources from which the cost occurs. It is possible that charges for a bounced check are as high as 470,000%! When considering that there is no limit to the amount of up-charge allowed by banks, it is understood that the cost will continue to grow. The only way to reduce the cost of bounced checks is to work through a bounced check recovery service. Here are a few warning signs of how cost can be accrued through bounced checks for both the NSF check writer and the company that accepts the check.
- The initial cost comes from the bank. This would include the upcharge for a bounced check. In many cases, it can be a charge depending on the amount of the check. Preliminary costs can start at a daily fee of $5-$15 and continue to rise, reaching $300-$500 per transaction, depending on the amount of the check! This cost can be incurred by both the writer of the NSF check or the company for accepting it. During this time consult a bounced check recovery service.
- Interest is another factor that accrues during the time of extracting unavailable funds. When considering an overdraft protection plan, it is important to consider that interest can be factored into this agreement. Bottom line? More cost will naturally emerge when considering an annual fee to help protect your assets. These costs can transfer to a company if the NSF check is not taken care of in a timely manner.
- Service fees are also a consideration when looking at the cost of bounced checks. Any person who receives a NSF check can extract a fee from the person who wrote it. These fees are usually specified within the initial contract. The cost is usually $15 – $50 but can quickly add up for companies as they also feel these fees if not handled by the client immediately. When considering your finances, consider a “buffer” for the comfort in knowing that an NSF check is not possible.
The total cost of NSF checks is extreme when it comes to over-draw fees, interest and service fees. Consider other options when confronted with over-drawn checks. If the situation occurs, it is time to speak with a bounced check recovery service, like Global Check Recovery. Their free check collection service without monthly or annual fees can have you sleeping better at night knowing that the checks will be recovered and that your time and resources can go back into your business and not the fees of NSF checks. Call our toll free number today to have a consultation about Global Check Recovery Services!