Deluxe Payment Protection Systems, Inc., the company that provides SCAN check verification, Monday announced the introduction of R-Check. R-Check expedites and improves the re-presentment and recovery process for returned checks by turning a paper check into an automated clearinghouse (ACH) transaction.
“Retailers spend millions of dollars and thousands of hours collecting dishonored checks. R-Check is an electronic solution to improve retailers’ overall check management programs and recovery ratios while greatly reducing costs,” said Tim Birk, president, Deluxe Payment Protection Systems, Inc.
With R-Check, a retailer uses Deluxe Payment Protection Systems (DPPS) to re-present its returned checks electronically. Because checks can be re- presented up to two more times electronically, R-Check increases the likelihood that more checks will clear through electronic re-presentment and decreases the number of checks requiring traditional manual collection methods.
R-Check Process
— A retailer using R-Check receives its first deposit returned checks and forwards the data on these checks immediately to DPPS.
— DPPS “scores” the returned check data and separates checks that are likely to clear through re-presentment from those that are less likely to clear.
— Checks identified as not re-presentable are immediately listed on the SCAN network, providing immediate point-of-sale loss prevention value to other SCAN members. These checks are also sent through the collections process, which improves the likelihood that the retailer will get paid.
— Checks identified as re-presentable are submitted through the automated clearinghouse (ACH) and the re-presentment process begins electronically.
— Depending upon the situation, up to two R-Check transactions can be initiated on a returned check item. If the process recovers funds, the retailer’s account is automatically credited.
— If no funds are collected, that information is shared with the SCAN network. The collections process then begins on these uncleared checks.
“Because we score and separate re-presentable checks from those that are not, we improve the re-presentment and collections process, saving retailers time and money. R-Check also improves the timeliness of the data contributed to the SCAN network that is accessed by its retail members,” said Birk.
Deluxe conducted an R-Check pilot with several top retailers, including a large home retailer in southern California. This pilot partner was able to recover 75 percent of its NSF checks by using R-Check. Of the $382,100 in returned items sent to SCAN, $289,900 was recovered. This result represents a great improvement in the dollar amount recovered and in the speed of recovery.
R-Check complies with NACHA (National Automated Clearinghouse Association) rules that set the standards for ACH transactions. NACHA rules regarding electronic re-presentment were sanctioned on September 18, 1998.
“Deluxe is committed to leveraging our data and delivery competencies to help the payment industry minimize risk and maximize profitability, “said Kim Anderson, Senior Group Product Manager, Deluxe Corporation. “R-Check is the first product in a suite of products to come utilizing check conversion technology that will dramatically reduce the risks associated with check acceptance and the costs related to payment processing.” Anderson said.
Deluxe Payment Protection Systems, Inc., a subsidiary of Deluxe Corporation (NYSE: DLX), provides a full range of check management solutions to retailers and supermarkets including point-of-sale check verification, returns management, overall check program management, and full-service collection services. The SCAN network is used by more major retailers and supermarkets than any other check verification service, representing more than 74,000 retail locations. In 1997, SCAN verified nearly 3 billion transactions.
Deluxe Corporation is a leading provider of integrated risk management, electronic transaction services and paper payments to the financial services and retail industries. Deluxe’s decision and analytic capability, Debit Bureau(SM), uses a data warehouse that integrates debit data from Deluxe’s various business units to enhance products and services. Debit Bureau combines the most comprehensive source of debit data to help retailers and financial institutions make better decisions. Founded in 1915, Deluxe is a Fortune 1000 company headquartered in St. Paul, Minn., and employs more than 15,500 people worldwide. More information about Deluxe can be found at
