CHEXpedite™ Electronic Check Recovery - digitalCHEX

CHEXpedite™ Electronic Check Recovery
Merchant Checklist
Legal Business or Corporate Name
DBA
Please be advised, if the items below have not been completed, the application will be
returned. To show completion, please initial in the box next to each item and return this
checklist with the application.
1.
Complete the Merchant Application and Agreement, with signatures.
(Forms CECR001a & CECR001b)
2. Complete the Bank Release Authorization (Form CECR002) with signatures.
Choose one of the following:
a. Bank will forward check to processor OR
b. Merchant will forward checks to processor
3.
Make two copies of the above documents;
a. One for your records
b. One for the merchant’s records
4.
Go to the Business Support System and under Licensee Access Only, complete the
ECR Online Merchant Registration:
Date Entered:
(month, date, year)
5.
Display the Door and POS labels at the merchant’s retail site.
6.
Implement the signed authorization procedure.
7.
Deliver, or instruct the client to deliver, the Bank Release Authorization to their
Representatives at the Bank responsible for special handling of returned items.
8.
Mail this completed checklist and the following items:
a. Original Merchant Application and Agreement (CECR001a and CECR001b) &
b. Copy Bank Release Authorization (Form CECR002)
TO: NBDS Inc.
Attn: CHEXpedite ECR Dept.
6707 Brentwood Stair Rd., Suite 640
Fort Worth, TX 76112
NOTE: Once the online application has been submitted, CHEXpedite™ will send out a Merchant Welcome Packet which
includes the Merchant’s User ID and Password, instructions on how to access online reporting, an 800 number for Merchant
Support, and an initial supply of Revocation Slips.
Comments:
CHEXpedite™
8/22/01
CHEXpedite™ Electronic Check Recovery
Merchant Application
Merchant’s Legal Business Name
DBA
Billing Address
City
State
Zip Code
Retail Location Address
City
State
Zip Code
Phone Number
Fax Number
E-Mail Address
Contact Person/Title
Ownership - Partnership/Corporation
# of Locations
Year Acquired
Reporting (online or mailed)
Federal Tax ID
Owner’s Social Security Number
Banking Information
Name of Primary Bank
Name of Account
Bank Representative
Bank Phone Number
Bank Routing Number
Bank Account Number
The Undersigned certifies the accuracy of all of the Merchant information provided herein and authorizes ECHO to investigate such information which may include personal
credit reports on Merchant’s principals or information from other sources pertaining to the Merchant’s credit worthiness, financial responsibility or accuracy of any of the
foregoing information. Merchant further agrees to notify ECHO of any and all changes, which may occur from time to time, relative to the information and statements contained
herein. .
Service Options
(choose one)
____ Electronic Collections Only
____ Electronic and Secondary Collections
____ Secondary Collections Only
Obtaining Check writer Authorizations
Merchant hereby agrees to obtain a written authorization from each check writer for (a) the state allowed return check charge, and
(b) the electronic re-presentment of the check, before submitting a returned check to ECHO for Processing. Merchant will obtain
such check writer authorizations primarily by the following method. Initial the primary method to be used below.
__________ By stamping all checks with the stamp approved by CHEXpedite™ Electronic Check Recovery and having customer
sign where indicated.
__________ By placing authorization language acceptable to ECHO on any invoice, remittance advice, check acceptance
agreement, contract or similar document, which has been signed by Customer.
__________ Signed authorization on receipt generated by point of sale device.
This CHEXpedite™ Electronic Check Recovery Merchant Agreement (Agreement) is between the above named merchant
(Merchant), Electronic Clearing House Inc. (ECHO), 28001 Dorothy Drive, Agoura Hills, CA 91301 and First Regional Bank (ODFI),
28310 Roadside Drive, Suite 152, Agoura Hills, CA 91301. This Agreement is an integrated agreement, and all prior negotiations,
agreements and understandings, whether oral or written are therefore integrated herein. No modification or amendment of this
Agreement shall be effective unless it is in writing and signed by all parties. The Officer signing below certifies that he/she is
authorized and empowered to execute this Agreement on behalf of Merchant and to bind Merchant to the terms and conditions
stated herein.
Agreed and Accepted this the __________ day of __________ ,20__________
Agreed and Accepted this the __________ day of __________ ,20__________
Merchant Signature
Licensee/Sales Rep Signature
Printed Name of Authorized Signor
Print Licensee Name
Licensee Number
Print Sales Rep Name
Sales Rep Number
1 of 2
08/21/01
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Merchant authorizes ECHO to re-present, in accordance with the RCK rules of the National Automated Clearing
House Association (NACHA) all returned checks forwarded to ECHO by Merchant or Merchant’s bank(s). This
program is subject to a $2,500.00 per check face value limit in accordance with the RCK rules of NACHA. ECHO
retains the right to refuse to process any returned check submitted to ECHO by Merchant or Merchant’s bank.
In addition to re-presentment of returned checks, Merchant authorizes ECHO to originate separate electronic
debits to check writers for returned check fees. Such returned check fees shall be for the maximum amount
allowed by applicable state law(s). Merchant agrees that check writer notices of such returned check fees will be
posted by Merchant at all point of sale locations at all times as required by state law(s), NACHA or ECHO.
For each returned check forwarded to ECHO, Merchant will have received written authorization from the check
writer to (a) re-present the check electronically and (b) charge a returned check fee. Merchant’s primary method of
obtaining such consumer authorizations will be as described in the CHEXpedite Electronic Check Recovery
Merchant Application.
Merchant agrees either (a) to complete and forward a Return Item Release Authorization Form, provided by
ECHO, to the depository bank(s) utilized by Merchant such that all returned checks shall be forwarded by bank to
ECHO after first presentation, or (B) to advise Merchant's bank(s) to forward returned checks to the Merchant after
first presentment.
Collected funds are paid via ACH credit to the Merchant's account specified herein on the next payment date
following collection of the funds. Payment dates are the first and the sixteenth day of each month (or the first
banking day thereafter).
ECHO will pay the Merchant 100% of funds collected on the face value of the check. Partial payments received in
secondary collections will be paid to Merchant on the next payment date as set forth above. ECHO will rebate to
Merchant 20% of returned check fees only when the following conditions are met; (a) merchant bank’s is
forwarding returned items directly to the processing center, (b) both the check and the returned check fee are
collected electronically, (c) collection fee transaction is not returned or otherwise charged back by the consumer or
by consumer’s bank, (d) the amount of the collection fee transaction is greater than $15 dollars. ECHO as
compensation for providing activity reports to Merchant will retain the first such rebate each month for each
Merchant location. No rebate is paid on checks recovered by secondary collection.
Merchant agrees and authorizes ECHO to debit Merchant's accounts for any checks collected electronically that
are subsequently returned by check writer's bank. This authorization survives the termination of this Agreement.
ECHO does not guarantee the collection or payment of any returned check presented to ECHO.
Merchants with online reporting can retrieve check images online. Check images will be stored and available
online for one (1) year from the date received at ECHO. Merchants requiring an image of a check subsequent to
that time will need to contact their original depository banks which are required by law to retain check images for
seven years.
Paper checks will be shredded one hundred and eighty (180) days after the date received at ECHO. Prior to the
date a check is shredded, on an individual check basis, Merchant may request the return of specific paper checks.
ECHO will mail such checks within 3 business days of Merchant’s request. Actual receipt of the check(s) by
Merchant is subject to U.S. Mail delivery standards for first class mail. Merchant agrees to indemnify and hold
ECHO and ODFI harmless from any loss or failure of delivery by the U.S. Mail. A check retrieval fee of five dollars
($5) per check will be assessed to Merchant.
No Retrieval Fees for Cancelled ECR Merchants - Upon written request from a Merchant canceling the service, all
original checks not yet shredded by ECHO will be sent back to the Merchant without a retrieval fee.
Any dispute between Merchant and check writer relating to a check transaction shall be settled between Merchant
and check writer. Merchant agrees to indemnify and hold ECHO and ODFI harmless from any claim, liability, loss
or expenditure resulting from Merchant’s actions or in-actions, including but not limited to failing to obtain written
authorizations or post check writer notices as required by NACHA and this Agreement. Notwithstanding the
foregoing, ECHO agrees to indemnify and hold Merchant harmless from any claim, liability or loss by ECHO's or
ODFI’s actions or in-actions.
All transactions covered by this Agreement are governed by NACHA's Operating Rules, Regulation CC and E
established by the Federal Reserve Board, UCC Article 4, The Electronic Funds Transfer Act and other applicable
laws and regulations.
If Merchant fails to comply with any term of this Agreement or any applicable laws or regulations cited in this
Agreement, then ECHO may terminate this Agreement immediately by giving notice to Merchant. If this Agreement
is terminated for any reason, ECHO will have 45 days to complete the processing of all returned checks currently
in the collection process at ECHO.
Either party may terminate this Agreement by giving the other party thirty (30) days written notice of termination.
ECHO may change the terms of this Agreement at any time by giving Merchant ten (10) days notice of said
change. If Merchant does not agree to the change then Merchant may terminate this Agreement.
The laws of the State of California shall govern this Agreement.
Agreed and Accepted this the __________ day of __________ ,20__________
Agreed and Accepted this the __________ day of __________ ,20__________
Merchant Signature
Licensee/Sales Rep Signature
Printed Name of Authorized Signor
Print Licensee Name
Licensee Number
Print Sales Rep Name
Sales Rep Number
2 of 2
08/21/01
CHEXpedite™ Electronic Check Recovery
Bank Release Authorization
Forward to Commercial Accounts Representative
LIC#__A________________ LIC Phn. _____________________
Merchant’s Bank Name
Contact Name
Address
City
State
Phone
Fax
Zip Code
TO WHOM IT MAY CONCERN:
I/we hereby authorize and instruct you to mail all return items after first presentation for payment and
determination of uncollectable funds to CHEXpedite™ Electronic Check Recovery. It is important that
you forward these items after the first presentation; do not attempt to present each item a second time.
Please Remit All Returned Items To:
* Please Insert Merchant’s Name
______________________________________
c/o XpressCheX, Inc.
P.O. Box 1927
Albuquerque, NM 87103-1927
This new address and authorization applies only to return items and is to remain in effect until canceled in
writing. Please include a copy of the bank debit in my/our statement.
Bank Routing Number (9 digits)
Bank Account Number
st
Print Name of 1 Authorized Signor on the Account
st
nd
Print Name of 2 Authorized Signor on the Account
nd
Signature of 1 Authorized Signor on the Account
Signature of 2 Authorized Signor on the Account
Title
Title
Date
Date
Merchant Account Name
Contact Name
Address
City
State
Phone
Fax
CHEXpedite™
Zip Code
8/21/01
CHEXpedite™ Electronic Check Recovery
Merchant Location Form
This form must be used in conjunction with the Merchant Application and Agreement. Please include an
identifying store number or location name for each additional location.
Corporation Name
Location Phone
Location Address (Street, City, State, Zip)
E-Mail Address
Contact Name
Website URL
Reports (Online or Mailed)
Service Option, if different from Corporate
Bank Routing Number
Bank Account Number
Corporation Name
Location Address (Street, City, State, Zip)
Location Phone
Location Fax
E-Mail Address
Contact Name
Website URL
Reports (Online or Mailed)
Service Option, if different from Corporate
Bank Routing Number
Bank Account Number
Corporation Name
Location Address (Street, City, State, Zip)
Location Phone
Location Fax
E-Mail Address
Contact Name
Website URL
Reports (Online or Mailed)
Service Option, if different from Corporate
Bank Routing Number
Bank Account Number
Corporation Name
Location Address (Street, City, State, Zip)
Location Phone
Location Fax
E-Mail Address
Contact Name
Website URL
Reports (Online or Mailed)
Service Option, if different from Corporate
Bank Routing Number
Bank Account Number
Corporation Name
Location Address (Street, City, State, Zip)
Location Phone
Location Fax
E-Mail Address
Contact Name
Website URL
Reports (Online or Mailed)
Service Option, if different from Corporate
Bank Routing Number
Bank Account Number
CHEXpedite™
Location Fax
8/22/01
Priority Information
ECR2000™
1.
Please read all the materials before addressing questions to NBDS Support. Questions can be answered online
with the NBDS Business Support System or you should email your questions to support@nbdsinc.com.
2.
Make two copies of all the paperwork. One is for your records and one is for the merchant.
3.
All originals of the completed ECR2000™ Forms (except Bank Release Authorization) are to be sent to NBDS
Inc., Attn: ECR Dept, 6707 Brentwood Stair Road #640, Fort Worth, TX 76112. Do NOT fax these forms.
4.
Take the original Bank Release Authorization to the bank. Then set a reminder for your self to follow up on this to
see that it is implemented.
5.
The Sales Rep Number on the bottom of the Merchant Application is for your sales personnel to use.
6.
Commissions are paid on or about the 15th of the month for the checks recovered the prior month.
7.
Real time online reporting detailing the merchant’s NSF activities and funds settlement is available to you and
your Sales Rep.
8.
When a merchant signs up for ECR™, signage for proper notification of the check collection policy should be
provided to the merchant. Licensee may sell counter labels, window stickers and authorization stamps to recover
cost. Labels and self-inking stamps for this purpose can be acquired from NBDS, Inc. and are mandatory.
9.
Regulations allow the check writer’s bank account to be debited only three times in attempt to collect a check, and
that includes the times the paper item is presented for payment. The return fee is only assessed once.
10. When delivering the “Bank Release Authorization” to the bank, ask to speak with the representative in
Commercial Accounts who handles the Merchant you signed up. Have the Authorization date stamped and ask for
a copy. Call the person with whom you left the Bank Release Authorization within the next week to verify that the
bank is doing this function for their customer.
11. On the Bank Release Authorization, the sentence “Please include a copy of the bank debit in my/our statement” is
requesting that the merchant’s bank send a copy of the debit notice to the Merchant.
12. To order ECR™ brochures, send an email to shipping@nbdsinc.com or you can order supplies using the online
catalog in the Business Support System. For current pricing, contact the Shipping Department.
13. When a check is recovered the original is stored at XpressCheX™ for 180 days. If the merchant requests,
XpressCheX™ will return the paper item at $5.00 per item.
14. If the merchant is already using a NSF check recovery system he or she may have a contract with that company.
Review the terms of cancellation with the merchant and be sure to honor the existing agreement.
15. XpressCheX™ collects on average 60-70% of the NSF checks that are sent to them, the balance are closed
accounts or un-collectable for one reason or another. The industry average nationwide has about a 45% success
rate.
16. XpressCheX™ works well with existing check verification systems that may already be in place at your
prospective client’s location. Having a verification system only adds to the detection of a bad check writer and to
the prevention of losing money on fraudulent checks as well as NSF items.
17. To make sure your merchant has been set up properly, please do the following: Go to www.chexpedite.net, select
Electronic Check Recovery, select Merchant Login. Enter your BSS User ID and Password. Select the Total
Merchant Listing and choose a start date previous to the online application entry of the merchant in question. If
the merchant is not listed, please contact ecr@nbdsinc.com.
8/22/01
CHEXPEDITE™ - ELECTRONIC PAYMENT SOLUTIONS
CHEXpedite™ Electronic Check Recovery (ECR)
User’s Guide
Version 1.0
ã NBDS, Inc.
6707 Brentwood Stair Rd. • Suite 640
Fort Worth, TX 76112
Phone 817.457.9545 • Fax 817.457.0188
8/22/01
Table of Contents
I.
Welcome
2
II.
Overview
3
III. Compliance Issues
5
IV. Service Options
6
V. Merchant Customer Service
7
VI. Reporting
8
VII. Payments to Merchants & Pricing
13
VIII. Appendix A- Check Reason Code Description
15
IX. Appendix B- Active Status Code Description
16
X. Helpful Tips to Avoid Fraudulent Checks
17
CHEXpedite™ Electronic
Check Recovery
There are tremendous opportunities in the marketplace for your
business. Welcome to a new future!
I. Welcome
S
uccessful enterprises focus on their core business. CHEXpedite™ Electronic Check
Recovery solves your NSF problems so you can do just that. You can finally stop
chasing down bad checks and concentrate on your business instead.
CHEXpedite™ Electronic Check Recovery allows you to collect bounced checks
electronically! Save time and money, while increasing collection percentage and cash flow.
Collecting out-of-town checks is no longer a hassle. Our electronic collection process is much
faster and more convenient than any other method available, and it will work on any bank in
the U.S. and its territories.
Your customers will benefit, because bouncing a check is an embarrassing thing that no one
likes to handle in person. CHEXpedite™ Electronic Check Recovery handles it for them
quietly. CHEXpedite™ Electronic Check Recovery notifies your customer's bank of the ACH
transaction and adds it to his or her statement.
What is CHEXpedite™ Electronic Check Recovery?
When your customer bounces a check, your bank forwards the returned check directly to
CHEXpedite™ Electronic Check Recovery. CHEXpedite™ Electronic Check Recovery
enters the check into a database and re-submits it electronically via the ACH network.
XpressCheX will attempt to minimize the likelihood of a 3rd return by timing this
presentment for the next 1st or 16th of the month.
The CHEXpedite™ Electronic Check Recovery Advantage
§
No limit on number of checks
§
Eliminates high cost of guarantee services
§
No special equipment needed
§
No long-term contracts to sign
§
When the funds are collected and released, you receive 100% face value of the
check paid twice monthly.
2
C H E X P E D I T E
II. Overview
How Does CHEXpedite™ Electronic Check Recovery Work?
1. Merchant accepts checks in the normal course of business and deposits those paper checks
with their local banks (1st Presentment).
2. Returned items are forwarded to ECHO/XpressCheX
(PREFERRED) or by Merchant).
(either by Merchant’s bank
3. Upon arrival at ECHO/XpressCheX, each check is evaluated and assigned to one of two
collection groups.
4. ECR Collection Group – checks returned for either NSF or UCF and are eligible for
automated ECR collection.
5. Regular Collection Group – checks that were returned Account Closed, Stop Payment,
Fraud or any other reason that precludes an automated ECR collection and are therefore
eligible only for Regular Collections.
The ECR Process
1. When the check items are received by our processing center, they are digitally imaged and
immediately presented electronically (2nd presentment) for clearing via the ACH (to maximize
the likelihood of funds recovery from a timeliness standpoint).
2. If the 2nd presentment clears the consumer’s account (not returned by consumer’s bank
within 5 banking days of the 2nd presentment), an electronic debit transaction is originated to
the consumer’s account for the state-allowed return fee.
3. If the 2nd presentment is returned (2nd return) by the consumer’s bank, the check either
remains in the ECR Collection group (if eligible) or is placed in the Regular Collection group.
NOTE: Items are re-evaluated each time they are returned following an automated ECR collection attempt, and
if no longer ECR’able (and Merchant participates in Regular Collection), re-assigned to the Regular Collection
Group.
4. For Merchants not participating in Regular Collection, non-ECR’able items are sent back to
the Merchant.
5. When a 3rd presentment is necessary, ECHO/XpressCheX will attempt to minimize the
likelihood of a 3rd return by holding the checks till the 1st or 16th (optimal banking days) and
resubmit.
6. If the 3rd presentment clears the consumer’s account (not returned by consumer’s bank
within 5 banking days of the 3rd presentment), the collection fee is charged to the consumer’s
account via the ACH.
3
C H E X P E D I T E
7. If the 3rd presentment is returned (3rd Return) by the consumer’s bank, the transaction can
no longer be processed in the ECR Collections group and (if applicable for this merchant) is
placed in the Regular Collection group.
Note: If the 1st or 16th day of any month falls on a non-banking day, then any banking related event scheduled
for that day will be performed on the next banking day following that 1st or 16th.
4
C H E X P E D I T E
III. Compliance Issues
It is the responsibility of the merchant to obtain proper consumer authorization on each NSF
and UCF item submitted by a Merchant (for ECR). This authorization is to be a full signature
and not initials of the customer.
ECHO/XpressCheX assumes that proper consumer authorization is being taken for each
NSF and UCF item submitted by a Merchant (for ECR) and that the Merchant is
retaining documentation of such authorization; And, if checks are not stamped, ECHO /
XpressCheX assumes that proper authorization was obtained either by way of the
consumer’s signature on a printed receipt, or that the consumer signed a contract with the
Merchant containing an ongoing authorization clause.
ECHO/XpressCheX reserves the right to conduct periodic Merchant audits to insure that
consumer authorizations are on file.
Merchants, in the ECR agreement, shall indemnify ECHO/XpressCheX for
their failure to obtain proper consumer authorization and authorize ECHO/XpressCheX to
periodically audit Merchant’s consumer authorization documentation.
For every returned item submitted by a Merchant, ECHO/XpressCheX will assume that
proper consumer notices were posted at the Merchant location
to allow for the electronic collection of the state-allowed return fee.
Unfortunately the processors for ECR 2000 and Check Collect currently will not accept
these types of business opportunities: Check Cashing and Pay Day Loan. Check Cashing
businesses present special challenges to the electronic re-presentment of items.
1. Pay Day Loan companies are restricted by the state in the fees that they can charge for
return items.
2. Legal recourse to settle checks are affected in that the DA's office will not accept post
dated checks as a valid debt instrument.
3. Collection rates on these types of items are notoriously bad, in that many accounts will
be closed. If traditional collections are used, it is not cost effective, because the vast
majority of these checks will not be recovered. The address will change, phones
disconnected, and stop pays placed on valid checks.
4. Cashed Payroll Checks present other problems for collections in that they do not carry
the signature authorization of the check maker. Even if the person cashing the check
signs authorization to collect, the company that issued the check did not agree to
electronic collection.
At one time our processors felt that this would be desirable business, but experience has
shown that it is not profitable to process return items, that any profit made is usually
eaten by the special requirements imposed by the state.
Without exception, our processors have declined this business, and so have our competitors.
5
C H E X P E D I T E
IV. Service Options
Option 1 : ECR and Regular Collections
CHECK ROUTING:
·
Merchant’s bank forwards ALL returned checks to ECHO/XpressCheX after 1st
return (preferred method)
·
When Merchant’s bank either cannot or will not forward checks, Merchant may
forward checks to ECHO/XpressCheX after 1st return (alternate method)
Option 2 : ECR, No Regular Collections
CHECK ROUTING:
·
With this option, the Merchant must forward checks to the processing center.
·
Merchant forwards only NSF and UCF items to ECHO/XpressCheX after 1st return.
·
This allows the Merchant to retain Stop Pays and Closed Account items for their own
Regular Collection source.
Option 3 : Regular Collections Only
In the event that a merchant does not want to utilize ECR, this option allows the Merchant to
utilize ECHO/XpressCheX for Regular Collection services only.
Merchant’s bank forwards all returned checks to ECHO/XpressCheX after 1st return (preferred).
When merchant’s bank either cannot or will not forward checks, Merchant may forward checks
to ECHO/XpressCheX (alternate).
When one of the above options allows for submission of checks directly from the Merchant,
NBDS will provide Merchants:
·
Envelopes pre-addressed to ECHO/XpressCheX, pre-formatted for the Merchant to
complete Merchant’s return address (Business Name, Address, Merchant Number).
·
Check Inventory Forms quantifying the number and amount of checks enclosed along
with the name and Merchant number of the submitting Merchant.
6
C H E X P E D I T E
V. Merchant Customer Services
The ECR2000 program will be administered by NBDS, Inc.
alliance partner,
ECHO/XpressCheX. They are located in Albuquerque, New Mexico and the principals have
been in the collections business since 1981. They are very experienced in customer serviceoriented collections.
They have convenient hours of operation: Monday - Saturday 8:00am – 9:00pm MST
Customer Service Phone Number: 1 (800) 423-0554
Customer Service E-mail: ecrsupport@chexpedite.net
All staff members are courteous, professional collectors. They are required to pass an intensive
collector’s exam and every shift includes a Spanish-speaking collector.
Business Philosophy:
“We treat each check item like it’s our own money.”
7
C H E X P E D I T E
VI. Reporting
With CHEXpedite™ Electronic Check Recovery CHEXpedite™ Electronic Check Recovery,
you can access your transaction reports via the Internet anytime--24 hours a day, 7 days a week.
This online real-time reporting helps you reconcile your bank account and keep track of the
money that CHEXpedite™ Electronic Check Recovery recovers for you.
Logging In
Each merchant will be provided with a login ID and PIN number when their application has
been accepted and their account has been created on the system. To log in to the system, you
must have Internet access and utilize a web browser.
CHEXpedite™ Electronic Check Recovery Online Reporting Options
Access:
Demo accounts:
Reports are available at http://www.chexpedite.com/
·
Choose CHEXpedite™ Electronic Check Recovery
·
Choose Merchant Login
Multiple locations
User ID: merchant
Password: demo
Single location
User ID: location
Password: demo
Types of Reports Available:
Search
Based on search criteria you specify
Chk Rcvd Rpt
Checks received report
Acct Summ Rpt
Account summary report
Check Inv Rpt
Check inventory report
ME Statement
Last month end statement
Tot Merch List
Total merchant listing
Description of Available Reports:
Search
Allows you to search for particular item or items.
8
C H E X P E D I T E
Search criteria:
· Name (you can even type in the first few characters of the name and it will find
all matches)
· Bank account number
· Bank ID number
· Check number
· Date listed
Search results will show all items found which match your search criteria.
Results:
Search results will be linked, allowing you to view detail on the actual item. You will be
able to view a summary of the account, or choose to:
· View front of check
· View back of check
· View payments
· Send a message (to the XpressCheX collection analysts)
Chk Rcvd Rpt
This report allows you to create a list of checks according to certain search criteria and
relevant information.
Search criteria:
· Creditor code/group
· Date listed (range)
· Cashier
· Check reason code
· Amount listed range
Results:
Displays report on your screen that can be printed from your browser.
Displays one line of information for each check. The information displayed will include:
· Name
· Amount of check
· Amount paid (to date?)
· Check number
· Check date
· Date listed
· Cashier
· Reason code
· If there is a DL number
· If there is an address
· If there is a phone
· If there is a verification number
Acct Summ Rpt
Provides merchant with statistical information by month and by year.
9
C H E X P E D I T E
Search criteria:
· Creditor code/group
· Accounts listed between certain dates
· Breakdown by month
Results:
Displays report on your screen that can be printed from your browser.
Information displayed will include:
· Date
· Number placed (number of checks)
· Amount placed
· Average balance
· Number paid in full
· Monthly collections
· Total collections
· Percent collected
· Number return
· Total returned
· Number active
· Amount active
· Rebate paid
Check Inv Rpt
Create a list of checks, similar to the Checks Received Report. Gives specific information
regarding collection efforts made on each check listed.
Results:
· Displays report on your screen that can be printed from your browser.
· Information displayed will include:
· Name of check writer
· Check amount
· Total balance due (including the fee)
· Check number
· Check date
· Date listed
· Cashier number
· Check conditions
· Reason code
· Status on check
ME Statement
Displays total amounts remitted by XpressCheX into your account. Gives itemization of:
· Payments from debtors
· Direct payments called into XpressCheX office by merchants; and
10
C H E X P E D I T E
·
Billing information received from merchants regarding monthly reporting fees,
verification fees, equipment rental fees, etc.
Results:
Displays report on your screen that can be printed from your browser.
Information displayed will include:
· Date of payment made to XpressCheX
· Name of check writer
· Internal account number (our system assigns)
· Commission rate due merchant (rebate)
· Total paid to our office
· Total due XpressCheX
· Total due merchant
· Date of check listed
· Unpaid balance
· Direct payments (payments the store received)
· Net remit amount to merchant
· Changes to the creditor balance:
· Billing information
· Previous balance (if this balance was a negative amount, the system will keep track
and deduct the balance due on the next statement)
Tot Merch Listing
Shows you the total merchant base from your organization. Allows you to see when
XpressCheX last entered a check regarding that merchant.
You can follow up with the bank if there hasn’t been the kind of activity you are
anticipating.
Results:
Displays report on your screen that can be printed from your browser.
Information displayed will include:
· Merchant ID codes
· Merchant name
· Merchant phone number
· Merchant location
· Date we set up the merchant into our system
· Last listing date (last time our office entered a check on this merchant)
Other features of On-Line Reporting
The “Direct Pay” function allows merchant to take a payment (full or partial) from a customer
and post that payment directly to our system via the internet.
The “Instant Messaging” capability allows merchants to deliver important information on a
customer account directly to the processing center via the internet.
Check images will be stored and available to Merchants for one year from the date received at
ECHO/XpressCheX. Merchants requiring an image of a check subsequent to that time will
need to contact their original depository banks which are required by law to retain check images
11
C H E X P E D I T E
for seven years. Paper checks will be shredded 180 days after the date received at
ECHO/XpressCheX. Prior to the date an item is shredded, on an individual check basis,
Merchants may request the return of specific paper checks and they will be mailed within 3
business days of the request. Actual receipt of the item(s) by Merchant is subject to U.S. Mail
delivery standards for first class mail. Merchant indemnifies and holds harmless, ECHO/
XpressCheX, from any loss by the US mail. The check retrieval fee for this service is $5.00 per
item. Upon written request from a Merchant canceling the service, all original checks not yet
shredded by ECHO/XpressCheX will be sent back to the Merchant without a retrieval fee.
12
C H E X P E D I T E
VII. Payment to Merchants and Pricing
Payment to Merchants
Merchants will be reimbursed only for recovered items. Reimbursement will occur twice
monthly via ACH credit to the Merchant’s account.
For Collected Check Items
Option 1: ECR and Regular Collection
·
100% of face value of check items collected via ECR
·
100% of face value of check items collected via Regular Collections
Option 2: ECR Only
·
100% of face value of check items collected via ECR
Option 3: Regular Collection Only
·
100% of funds collected via Regular Collection
For Collection Fee Rebates
Merchant will qualify to receive a rebate in the amount of 20% of the qualifying collection fee
(not limited to $5.00) only when the following conditions are met:
Merchant’s bank is forwarding returned items directly to our processing center.
The full amount of both the collection item and the collection fee are recovered via ECR.
The collection fee transaction is not returned or otherwise charged back by the consumer or the
consumer’s bank.
The amount of that collection fee is greater than $15.00.
Pricing
Other than the minimal Check Retrieval Fee, there is NO CHARGE to Merchant for ECR or
the Regular Collection service.
Although ECR™ is a free service to the merchant, the first rebate amount each month
($5.00) per merchant location will be withheld to cover monthly processing costs
incurred.
The check retrieval fee for this service is $5.00 per item.
13
C H E X P E D I T E
VIII. Appendix A – Check Reason Code
Descriptions
1
DO NOT CASH
O
OTHER
2
NSF- 2ND
P
POSITIVE
3
CHECK ID
R
REFER TO MAKER
4
BANKRUPT
R01
INSUFFICIENT FUNDS
5
SERVICE CHARGE
R02
ACCOUNT CLOSED
6
FRAUD
R03
NO ACCOUNT CLOSED
7
LOST
R04
INVALID ACCOUNT NUMBER
A
NO ACCOUNT
R06
RETURNED PER ODFI
B
BALANCE HELD
R07
REVOKED BY CUSTOMER
C
CLOSED ACCOUNT
R08
PAYMENT STOPPED
D
POST DATED
R09
UNCOLLECTED FUNDS
E
NO ENDORSEMENT
R10
NOT AUTHORIZED
F
CLOSED FORCED
R16
ACCOUNT FROZEN
FRZ
ACCOUNT FROZEN
S
STOLEN CHECKS
H
STOP PAYMENT
U
UNCOLLECTED FUNDS
I
SIGNATURE NOT AUTHORIZED
W
WARNING
J
SIGNATURE MISSING
X
FORGERY
M
NON NEGOTIABLE
Y
STALE DATE
N
NON SUFFICIENT FUNDS
Z
NON EXISTENT BANK
14
C H E X P E D I T E
IX. Appendix B – Active Status Codes Descriptions
1/1X
RETRY TO PRESENT TO BANK
MIS
MISTAKE IN DATA ENTRY
2/2X
PAPER DRAFT THE ACCOUNT
NEW
NEW CALL
3/3X
DISPOSE THIS ACCOUNT
NPA
NO RCK PAYMENT, COLLECT
4/4X
YES, FUNDS AVAILABLE
NXT
FOLLOW UP
5/5X
NO FUNDS IN THE ACCOUNT
PBR
PAID BY REPRESENTMENT
AR
ACCOUNT RESEARCH
PIF
PAID IN FULL BY COLLECTOR
AT
REFERRED TO OUR ATTORNEY
PPD
PARTIAL PAYMENT DON’T WK
BKP
BANKRUPTCY
PPW
PARTIAL PAYMENT- COLLECTOR
BV
BANK VERIFICATION
PTP
PROMISE TO PAY
CB
REPORTED TO CREDIT BUREAU
RCH
HOLD FOR: FEES OR RETRY
CHG
CHARGE CARD OR DEBIT CARD
RCK
SCHEDULED TO GO BANK
CHK
PREPARE A CHECK DRAFT
RCN
RCK NON COMPLIANT ACCT
CR
CANCEL AND RETURN
RCW
WAITING FOR BANK RESULTS
DA
DISTRICT ATTORNEY
SIF
ACCOUNT SETTLED/ WAIVE
FEE
DSP
DISPUTED
SKP
LOCATE # TO CALL
FRG
FORGERY
FV
FUNDS VERIFICATION
UNC
UNCOLLECTABLE
MGR
MANAGER REVIEW
WAT
A HOLD ON ACCOUNT
UNASSIGNED CODE
15
C H E X P E D I T E
X. Helpful Tips to Avoid Fraudulent Checks
Record important information on the front of the check.
Oftentimes, the District Attorney will refuse to prosecute the forger if a driver’s license number
is not recorded when the check is accepted. Obtaining the information below at the time of
presentment is crucial in order to obtain a high collection rate. Use the T method:
Drivers License #
Verification #
Cashier’s or
Manager’s Initials
Daytime Phone #
Examine the check writer’s driver’s license carefully.
More than 60% of all forged checks taken last year were cashed with an expired driver’s license.
Compare the check writer’s driver’s license photo ID with the check writer. Make sure the
address on the ID is the same as the one imprinted on the check.
Exercise caution when a check is presented from a recently opened account.
Of all insufficient “hot checks”, 90% of them are drawn on accounts that are less than 1 year
old. Be extra careful regarding check accounts that have a check series number from 100 to
200.
Use a check reader to verify all checks before acceptance is finalized.
Significant reduction in check loss will be realized when accessing a good database that provides
negative check writer data and tracks check writing patterns associated with fraud rings.
16
Basic Rules
Chexpedite ECR - Electronic Check Re-presentment
Per the Final Rules effective September 15, 2000, the following list outlines the basic
rules for a merchant to electronically collect paper check items returned for non-sufficient
or unavailable funds using the ACH network.
·
To be eligible to be transmitted as a re-presented check entry, an item must:
o Be an item within the meaning of Revised Article 4 of the Uniform
Commercial Code (1990 Official Text)
§
U.C.C. - ARTICLE 4 - BANK DEPOSITS AND COLLECTIONS
PART 1. GENERAL PROVISIONS AND DEFINITIONS
·
o
o
o
o
o
o
·
§ 4-104. DEFINITIONS AND INDEX OF DEFINITIONS.
o …(9) "Item" means an instrument or a promise
or order to pay money handled by a bank for
collection or payment. The term does not include
a payment order governed by Article 4A
[electronic funds transfers] or a credit or debit
card slip
Be a negotiable demand draft drawn on or payable through or at a
participating depository financial institution, other than a Federal Reserve
Bank or Federal Home Loan Bank;
Be in an amount less than $2,500
Indicate on the face of the document that it was returned for insufficient or
uncollected funds
Be dated less than 180 days from the date the entry is transmitted to the
check writer’s bank
Be drawn on a consumer account
Must have been previously presented (a) no more than twice in paper
form, if the entry is an initial re-presented check entry; or (b) no more than
once in paper form and no more than once as a re-presented check entry, if
the entry is a reinitiated re-presented check entry. This means that there
can be a total of three presentments, either (a) one as the original paper
item and two electronic re-presentments or (b) two presentments as a
paper item and one electronic re-presentment.
The items may not be:
o Non-cash items (as defined by Section 229.2(u) of the Federal Reserve
Regulation CC)
8/21/01
TITLE 12--BANKS AND BANKING
CHAPTER II--FEDERAL RESERVE SYSTEM
PART 229--AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION
CC)--Table of Contents
Subpart A--General
Sec. 229.2 Definitions.
§ … (u) Non-cash item means an item that would otherwise be a check, except
that-· A passbook, certificate, or other document is attached;
· It is accompanied by special instructions, such as a request for special
advice of payment or dishonor;
· It consists of more than a single thickness of paper, except a check that
qualifies for handling by automated check processing equipment; or
· It has not been preprinted or post-encoded in magnetic ink with the
routing number of the paying bank.
o Drafts drawn on the Treasury of the United States, a Federal Reserve
Bank, or a Federal Home Loan Bank
o Drafts drawn on a state or local government that are not payable through
or at a participating depository financial institution
o United States Postal Service money orders
o Items payable in a medium other than United States currency
o Items which are third-party items (e.g., the payee endorses a check over to
a third party who also endorses the check)
o Demand drafts and third-party drafts that do not contain the signature of
the Receiver (e.g., the drawer does not sign a check but authorizes another
party to debit his account via a draft.
NOTICE REQUIREMENT
Merchants must provide notice to the check writer, prior to receiving an item to which the
re-presented check entry relates, informing the check writer that his returned check may
be collected electronically if the check is returned for insufficient or uncollected funds.
The notice must clearly and conspicuously state the terms of the re-presented check entry
policy before the merchant receives the item to which the re-resented check entry relates.
It is recommended that notice provided at the point-of-sale be clearly displayed on a sign
at the point-of-sale.
Merchants should be aware that, to protect both the check writer and the check writer’s
bank, a check writer will be able to sign an affidavit at his bank if the required
notification by the merchant is not provided and, consequently, have his account
recredited. The check writer’s bank, in turn, will be able to return to the merchant’s bank
the re-presented check entry (for which the check writer has signed an affidavit that
notice was not provided) by transmitting the return entry through the ACH system in
accordance with the ACH Rules.
8/21/01
COLLECTION FEES
Electronic entries for re-presented checks may be originated only for the face amount of
the check. No collection fees may added to the amount of the item when it is transmitted
as an ACH entry.
Merchants that use an ACH authorization stamp on the check being used for payment of
goods and services must abide by the following requirements for the practice to be
compliant with the NACHA Operating Rules:
o An authorization placed on the check must be signed and not initialed.
o The signature must be stand alone and not be stamped in close proximity
to the check writer’s signature on the check;
o The authorization must be readable and identifiable as an ACH debit
authorization and must clearly and conspicuously state its terms;
o The authorization on the check must contain information that explains how the
check writer may revoke the ACH authorization. [This does not preclude or
prevent the merchant from charging a state allowed return fee, but merely revokes
authorization to collect the fee electronically via the ACH];
o The merchant must provide the check writer with an electronic or hard copy of the
authorization, and;
o The merchant must retain the original or a copy of the authorization for two years
from the termination or revocation of the authorization.
Authorization language, if stamped on the back of the check, must be in the
endorsement space and not lower on the back of the check. Before stamping the back
of a check with anything other than an endorsement, merchants must ensure that they
understand and are in compliance with both the NACHA Operating Rules and all
regulation that govern the collection of checks.
RETENTION OF ORIGINAL ITEM OR COPY OF THE ITEM
The images of the checks will be stored at the Chexpedite™ Electronic Check Representment Processing Center for seven (7) years. The check images are viewable and
printable from the Chexpedite™ ECR Online Reporting website.
*** END ***
8/21/01