nsf checks and declined ach transactions
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4 THINGS YOU SHOULD KNOW ABOUT NSF CHECKS AND DECLINED ACH TRANSACTIONS
eCashflow Services, Inc.Laurie Winiarskihttp://lauriew.ecashflowservices.comLaurie.Winiarski@ecashflowservices.com
WHAT IS AN NSF CHECK?• NSF Check
• Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a check cannot be honored because insufficient funds are available in the account on which the instrument was drawn
Statistics:
90% of small businesses accept checksSource: Capterra Finance
4%-9% of checks are returned as NSFSource: eCashflow Services, Inc.
WHAT DOES AN NSF CHECK COST A MERCHANT?
Returned Check Fees range between $20-$40Legally, unless otherwise notified, banks re-present NSF Checks and
Declined ACH’s within 24 hours
Total Cost $40-$80
WHAT IS THE IMPACT OF A DECLINED PAYMENT TO MY BUSINESS?
Reduced or lost profit- Declined payments cost real money!
Example: $40 check returned as NSF. Accounts Receivable Clerk earns $20/hr and spends 1 ½ hrs chasing the payment. Soft Cost $30
Bank Returned Check Fee 1 - $20 Bank Returned Check Fee 2 - $20
NET -$30Can your business afford to lose money on transactions?
ADDITIONAL COSTS ASSOCIATED WITH NSF CHECKS
Cost of Product/InventoryCost of Service RenderedCost of In-House Collections
Data shows that in house collections is only successful 25%-35% of the time
Cost of 3rd Party Collections
Money doesn’t grow on trees – you need to understand the actual hard and soft costs of
declined payments!
CUSTOMER RETENTIONAcquiring new Customers costs 5-7% more than retaining existing Customers
Source: US Small Business AdministrationIncreasing Customer retention 5% increases profits 25%-95%
Source: Bain & CompanyExisting Customers are 50% more likely to try new products and spend 31%
more when compared to new customersSource: Invesp
1 of 8 Collection Calls result in cancelled accountsSource: eCashflow Services, Inc.
What is your Customer Retention Strategy?
IT DOESN’T HAVE TO BE THAT WAY
Re-present NSF checks 2 additional times with NO additional fees to merchants
100% of collected check amount is paid directly to merchants70-80% of all NSF Checks cleared in 21 days or lessFree check collection services for any payments eCashflow fails to clearOn-line portal access to monitor status of declines real time
Let eCashflow Services be your trusted advisor for declined payments!
What can eCashflow Services do for you?
THE “NO” SLIDENo Long Term ContractsNo Credit Card RequiredNo Hidden FeesNo Enrollment FeesNo Set Up FeesNo monthly chargeNo monthly minimumNo equipment lease or purchase requiredNo Collection fees for transactions eCashflow Services fails to clear
Does this sound too good to be true?There’s more!
WHAT ARE THE BENEFITS TO YOUR BUSINESS?
Significantly Reduce Bank Returned Check FeesEliminate/Minimize Collection FeesIncreased Cash FlowNo harassing collection calls to your client(s)Re-present NSF checks less than 6 months old*
(can only be re-presented a total of 3 times – if bank already re-presented twice clearing rates may be less effective)
Allows your employees to focus on core competencies
WHAT DOES ALL OF THIS MEAN?
eCashflow Services is 100% FREE to MerchantsTransparent Solution
Just set it and forget it- let eCashflow do the work for youRecover up to 78% of NSF checks is less than 30 days
WHY USE ECASHFLOW SERVICES?
Over 9,000 Merchants trust eCashflow Services to process their declined paymentseCashflow Services maintains a 96% customer retention rate since 1999
WHY – Because it just works!We maintain the highest levels of customer satisfactionIncrease your cash flow
100% of recovered checks credited to you immediatelyRecovery rates up to 78% in less than 30 days
No embarrassing phone calls to your clients
FOR MORE INFORMATIONContact Laurie Winiarski
Email: [email protected]: 908-268-8289
Sign Up: http://lauriew.ecashflowservices.com