www.returnedcheckmanagement.com is a web site for U.S. businesses that need help managing their returned checks. Here you may evaluate resources for an e-check collection service, a nsf check recovery service, stop payment check collection, and even links for District Attorney Bad check restitution programs.
Choosing a returned check management solution
Returned check management is an important subject for any business. In the past there were only a few choices. Now business owners may choose from "check guarantee services," local collection agencies, collection attorneys, use a District Attorney bad check restitution program, take bad check writers to small claims court, or use a service that specializes in returned check management.
About half of all the U.S. States have a "bad check restitution program." These may also be known as a "worthless check unit" or a "check diversion program." To see if your District Attorney offers a worthless check program, see my list of U.S. District Attorney and Prosecutor Offices on my sister web site, bumchecks.com.
If your District Attorney's office does offer a bad check restitution program, and you do not receive many bad checks each year, this may be a good check recovery solution for you. Business owners typically need to do file some paperwork and the collection process with D.A. offices can be slow, but a worthless check program works well for some businesses.
Check guarantee services are also used by some merchants. One of the best known check guarantee providers is telecheck. Unless the dollar amount on your checks are typically very large (several hundred or several thousand dollars), this is usually the worst way to manage your returned check collection needs.
If you have tried taking bad check writers to small claims court, you have probably found that this is often a poor option for various reasons. Collection attorneys may be very expensive. Another possible option is selling your bad checks. While there is a place for this service, selling your bad checks is usually most beneficial to the service that buys them.
For most small and large businesses, returned check processing is best handled by a third party (i.e. it is outsourced to a bad check recovery service).