3 Practical Ways to Handle a Bounced Check
Categorised in: Our Blog
A bad check is a payment that doesn’t go through. It happens when the person or business who gives you the check doesn’t have sufficient funds to make the payment. Without the necessary amount of cash in their account, your request for cash bounces back. A bad check may also be called a rubber or bounced check as a result. At the bank, they use the acronym NSF for Not Sufficient Funds to indicate why the payment failed.
If you’re lucky, you don’t see this acronym very often, but as the pandemic complicates finances for people across the country, it may become a more frequent problem that undercuts your bottom line. Not only do you lose the payment that bounces, but you may also be forced to pay bank fees for unknowingly processing an NSF check.
As a debt collection agency that specializes in bank check recovery, we don’t think that’s fair. We understand how hard you worked for that payment, and we believe you deserve to receive what you’re owed.
Collecting this money is possible, even during this unusual economic climate. We recommend you try these methods right away. We know from experience these tips will help you recover what you’re owed.
#1 Get in Touch with Your Customer
Once you realize the check has bounced, you need to speak with your customer. This call serves two purposes. One, you’ll inform the customer of the situation. Two, you can arrange a new time and payment method.
While on the call, keep the tone of the conversation polite and professional. Don’t jump to any conclusions about why this has happened. In some cases, a bad check comes down to bad timing. Unfortunately, this mix-up comes with consequences. In 2016, consumers paid a collective $15 billion in fees for bounced checks and overdrafts.
There may be a lot of reasons why this happens. Sometimes, you receive and deposit the check faster than your customer anticipates. Other times, they have to move funds around from several accounts, and their bank may put an unanticipated delay on these transfers.
Try to be patient and give your customer the benefit of the doubt. If they don’t have the right amount of money available yet, they may still have it in the near future. By being calm yet assertive, you’ll have a greater chance of receiving what you’re owed without damaging your relationship.
#2 Partner with a Collection Agency
If your phone calls go unanswered, or if your conversations amount to nothing, then it’s time to call one of the best debt collection agencies in the country. At Summit A*R, we offer a cost-effective approach to bad check recovery. We get you the money you’re owed without costing you time, frustration, or your customer.
A small percentage of debt collection services rely on aggressive tactics that skirt the law. In the span of a short phone call, these abusive practices can sour an otherwise amazing relationship that’s taken years to establish.
Here at Summit A*R, we champion a “P.H.D. Philosophy” when collecting debt. Short for Preserve Human Dignity, P.H.D reminds us to treat accounts with sensitivity, compassion, and respect.
This approach helps us do more than just follow the rules and regulations of our industry. It inspires us to take a respectful approach that preserves your relationships with customers and vendors.
An ethical approach to bad check recovery is needed now more than ever as the country goes through economic upheaval. Few people want to write a bad check. Most want to pay off what they owe, and they’ll appreciate our fair approach as conscientious collectors.
Usually, our campaign of letters and phone calls is enough to persuade most delinquent customers. But don’t confuse our ethical mandate with indifference. Our diplomatic approach is just as suited for more challenging accounts, and we have the tools necessary to convince even the most stubborn customers.
If your customer doesn’t respond to polite reminders to pay, we can add pressure by reporting debtors to one of the three major credit bureaus. Many individuals and businesses will change their tune when they realize their bad check could negatively impact their credit score.
Don’t worry if your customer seemingly disappears. Our talented skip tracing team has turned the art of locating people into a science, so we can find people who have skipped town or changed their names.
#3 Outsource Your Accounts Receivable
With a success rate like ours, we’re confident we can recover your bad check and bank fees. But before you put us on the case, we recognize you may have invested a lot of time in chasing down these delinquent accounts. That’s why we offer accounts receivable consulting and pre-collection services to round out our debt collection. If we’re involved in your AR cycle from the start, we can intervene before you waste any of your valuable time.
Accounts Receivable Consulting
Our experienced accounts receivable management professionals can help you increase cash flow by focusing on reducing bad debt write-offs. More still, we understand the value of the “patient experience” and keeping it positive in ways that can improve customer retention.
Our pre-collection services take over such tasks as patient billing, telephone and insurance follow-ups, and other customer-facing interactions. No matter what, you’ll be represented professionally by a company you trust with no complaints from your customers. By handing off all the “busy-work” of your current AR cycle to our seasoned professionals, your in-house collections department can focus on other important tasks within your organization.
With nearly a quarter of a century in the business, we have perfected every step of the collection process — from AR consulting all the way to skip tracing. If you need help at any of these stages, let us streamline your AR department and recover lost revenue.
Here at Summit A*R, we believe you deserve to be paid for all your hard work. If you’ve run into NSF issues, get in touch with us today. We’re ready to give rubber checks the bounce once and for all!