Should you sell your bad checks?

Thinking about selling your returned checks to a collection service that purchases returned checks?  Although many bad check buying services offer "immediate cash" for your bad checks, this may not be the best choice for your business.

One of the first questions on a business person's mind is typically How much will I be paid for my bad checks?  Services vary in what they offer.  If specific criteria can be met, some services may offer up to 90% of the check's face value.  Other bad check services may offer 50% of a check's value or even thirty cents on the dollar.  Sometimes check buying services base their service on the face value of the returned check (you receive the most amount of money if checks are under a certain dollar amount).

If you just want to get rid of checks no matter what the process costs your business, selling off uncollected checks will be a solution if you meet all the criteria of the bad check buyer.  In at least some cases this means your returned checks must be very recent and perhaps only NSF (i.e. no stop payment or closed account checks will be purchased).

Instead of selling off your bad checks and taking a loss, there is another option that may be more attractive for your business.  A national collection agency will, at NO COST to you, work to collect and return the full value of your checks to you  for free.  Additionally, an additional amount averaging $6.00 per collected check will be added to each check (this additional amount is from the state bad check fee, a charge imposed on bad check writers).  Why lose money on selling NSF checks when a full service collection agency will work to get the full face amount of your bad checks back for you at no cost PLUS an additional amount to offset your bank fees? 

If you are searching for services that buy bad checks, some potential services are given below that you may want to contact for comparison purposes.  I am not familiar with the following three companies; they are listed for the convenience of site visitors.

CheckProtek - "We buy bad checks 100% Guaranteed* Face Value on Checks Under $100.00. 

Bounced Check Services - Our Complete Check Collection Service is available to companies of all types and sizes, regardless of how many bad checks you receive.

Check Guarantee Services (CGS) - When you receive your NSF check we will pay you 90@ of the face value whether we collect or not!  Unlike other companies that pay you 50% of the value If and When they collect on a NSF check, CGS will send you a check every month for 90% of the face value for all NSF checks received that month.