Frequently Asked Questions About NSF Checks

Frequently Asked Questions

How does it work?
When your bank returns a customer's check to you for NSF, Insufficient Funds, or Uncollected Funds, you simply present them using our online terminal by entering the information from the check itself.

Alternatively, you may forward our Letter of Authorization to your bank which directs them to forward your returned checks directly to our RCK data entry center for processing. The NSF check writers checking account is debited the next banking day following entry into the Terminal. After the funds have been collected, RCK LockBox will electronically deposit the money into your designated bank account. You are kept informed of the whole process by email notifications and online real-time reports.
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How do I use RCK LockBox?
RCK LockBox is designed to simplify the collection of NSF checks. If you have paper checks processed by PayByCheck.com which are returned to you for NSF or Non-Sufficient Funds, you only need to enter the PayByCheck reference number. If the NSF checks you want to represent are from any other processor, or if they are regular pre-printed checks, you only need to enter the information exactly as it appears on the NSF check.

Once the NSF check has been submitted, RCK LockBox will attempt to electronically debit the amount of the check plus our processing fee from the check writer's bank account.
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How much does this service cost?
There is a small one time sign up fee of $19.95. There are no monthly fees and no transaction fees. RCK LockBox will charge the check writer a NSF handling fee which covers the processing costs and the service.
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How soon is the money deposited into our bank account?
RCK LockBox will forward 100% of the face value 21 banking days after a successful debit. A successful debit can take up to 30 days. By default collected funds will be mailed to you. Electronic deposit is an option. Simply fax us a voided check with your account ID number on it for your deposit account. The transaction details in the RCK LockBox utilities will show you exactly where in the process a check is.
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How soon can I begin using RCK LockBox after I sign up?
Instantly. Just follow our simple instructions and you will have quick access to our services.
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Do I have to sign up online?
No. If you sign up online you can begin using RCK LockBox right away. However, if you want you can print out the this application and fax it to us.
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Can I view a demonstration of the online status reporting area?
Yes. You can logon to a test account by clicking the Login button at the top of this page. You will then be prompted for a user name and password. Login using the test account ID: 00000000 and password: jerry. There you can view the sample online reports and online submission form used to represent new NSFs to the system.
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Why do I have to wait 21 banking days for the captured funds?
Time must be allowed for proper clearance through the banking system and to allow for those items that are still NSF to be returned again. In addition, there is absolutely no guarantee that the funds will be captured on the first attempt and may require another.
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How many times can a check be returned?
RCK LockBox can make two electronic attempts to retrieve funds on a returned NSF check. You initiate the first electronic debit when you enter an item into the online terminal. If that item is returned again because of NSF, RCK LockBox will automatically attempt a second electronic debit within 30 days.
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Do I need to notify my customers?
Yes. Notifying your customers of your electronic debit(s) is required by NACHA regulations. There are several ways to comply with this regulation:

1. You should post a sign at your business informing your check customers that you will be debiting their account electronically if their check is returned to you for NSF. You can purchase the appropriate signs on your own from various suppliers, or you can create your own, or can can simply print this page and display as appropriate. Internet based check transactions should also inform the customer (with text) at the time the transaction takes place

2. You can require your client to sign a separate authorization form.

3. You can 'rubber stamp' your customers' checks with the authorization language and have them sign it at the time you accept the check (this method works well for off site transactions i.e. for delivery drivers, etc.).

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Are all NSF checks eligible for RCK?
No. NACHA regulations specifically exclude the following paper checks:

Checks with a face value greater than $2,500.00
Returned checks more than 180 days old
Returned checks originally issued by a State or Federal government or agency
Returned checks drawn on non-U.S. banks, and in anything other than U.S. Dollars
Checks returned for anything other than NSF, Non-Sufficient Funds, Insufficient Funds, or Uncollected Funds

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Are the transactions secure?
Yes. All RCK LockBox transactions take place on secure servers using industry standard encryption. Our servers are located in a secured data center with controlled access.
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Is RCK LockBox a collections agency?
No. When you use this service, you are converting a paper NSF check into an electronic transaction; this is the first method that should be used to retrieve an NSF check.

A "collections agency" should only be used after attempts at electronic debits have been exhausted or the checking account involved becomes closed or frozen.
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Does RCK LockBox share client information?
No. We do not share client information with anyone. We would only share information if required by court order. To read our privacy statement click here.
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Is this legal?
Yes. The National Automated Clearing House Association (NACHA), the organization governing ACH transaction activity, approved new regulations regarding these transactions which became effective September 1998. This regulation protects both consumers and businesses.
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How do I start?
Sign Up Now! Just fill out our simple application.
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