A single entry debit initiated by Originators to re-present paper checks electronically after the paper checks have been returned for insufficient or uncollected funds.
The Company must provide notice to the check writer, prior to the receipt of each check, that:
A check returned for insufficient or uncollected funds may be re-presented electronically via the ACH Network; and
Receipt of their check will be authorization for the check to be used as a source document for an ACH debit entry to their account.
The notice must be clear and readily understandable, and must be provided in a prominent and conspicuous manner at the point-of-sale.
A copy of the front and back of the source document must be made available upon request for seven (7) years from the Settlement Date of the transaction.
The Company may initiate an RCK entry only in relation to an item that meets the following criteria:
It is indicated on the face that it was returned due to “Not Sufficient Funds,” “NSF,” “Uncollected Funds,” or comparable language.
It is dated 180 days or less from the date on which the RCK transaction would occur;
It has not been previously presented:
No more than two times through the check collection system; or
No more than one time through the check collection system and no more than one time as an RCK entry.
It contains a pre-printed check serial number;
It is in an amount of $2,500 or less;
It is completed and signed by the check writer;
The routing number, account number, and check serial number are encoded in magnetic ink;
It is payable in U.S. currency only; and
It is drawn on a consumer account.
Checks that do not meet all eligibility requirements;
Checks that contain an Auxiliary On-Us Field in the MICR line (large format business checks).
Checks payable to a person other than the Originator;
Check that accesses credit card account, home equity line, or other form of credit;
Check drawn on an investment account;
Check that is an obligation of a Financial Institution (e.g. Cashier’s check, Travelers Check, Money Order, Official Check);
Checks drawn on the Treasury of the United States, a Federal Reserve Bank, or a Federal Home Loan Bank; and
Checks drawn on a state or local government that are not payable through or at a Participating DFI.
Responsibilities of Originators
As an Originator, it's crucial to understand and fulfill your responsibilities when initiating RCK entries. To ensure compliance with the rules and regulations governing RCK transactions, follow these key steps:
Authorization and Notice: Obtain proper authorization from the Receiver before initiating RCK entries.
Eligible Items: Select checks for RCK Entries that meet the eligibility criteria, such as checks that were returned due to insufficient funds or other qualifying reasons.
Retention: Retain a copy of the item used as the basis for the RCK Entry for the specified period as per the NACHA rules. Be prepared to provide a copy of this item upon request to the ODFI or RDFI (Originating or Receiving Depository Financial Institution).
Provide Eligible Source Document Copies: Be ready to provide a copy of the eligible source document upon request.
Prompt Response to RDFI Requests: When the RDFI (Receiving Depository Financial Institution) submits a written request for a copy of the front and back of the Eligible Source Document, provide a clear copy within ten Banking Days of receiving the request. This must be done if the request is received within seven (7) years of the Settlement Date of the RCK Entry.