Check Representment

DEFINITION of 'Check Representment'

A system wherein a check that bounced or did not clear when it was first presented because the account on which it was written had insufficient funds, is re-presented when sufficient funds are available in the account. In the check representment process, the bounced or returned check is usually converted into an electronic item for representment. Many banks and financial institutions offer check representment services to their business clients at no charge.

BREAKING DOWN 'Check Representment'

The benefits of check representment services are manifold. It gives businesses another opportunity to collect payment for products supplied or services rendered, thus reducing the time and expense of going through the collections process or managing bad debts.


Also, the electronic nature of check representment means that repeat offenders with regard to multiple NSF checks can be flagged. This would give businesses advance notice of potential non-payment, and they can therefore insist on 100% advance payment from such clients.


As well, electronic items have an advantage in that they are re-presented more quickly and also receive priority over paper checks. Electronic items also have lower handling costs and much shorter processing times than paper checks.

RELATED TERMS
  1. Rubber Check

    Another name for a "bounced check." A rubber check is a slang ...
  2. Electronic Check Presentment - ...

    A process that allows financial institutions to exchange digital ...
  3. Regional Check Processing Center ...

    A local Federal Reserve facility where checks that are drawn ...
  4. Float Time

    The amount of time between when an individual writes and submits ...
  5. Cashier's Check

    A check written by a financial institution on its own funds. ...
  6. Certified Check

    A type of check where the issuing bank guarantees the recipient ...
Related Articles
  1. Personal Finance

    What is a Bounced Check?

    Bounced check is a slang term to describe a check that cannot be processed because its writer has insufficient funds.
  2. Personal Finance

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  3. Trading

    Banking: Managing Your Checking Account

    By Amy FontinelleBecause your checking account is the nexus of all your banking activity - the main place that your money flows in and out of - you'll need to do a few things to keep an eye on ...
  4. Trading

    Trendlines

    Trendlines are a visual representation of support and resistance in any time frame.
  5. Markets

    Explaining Taxation Without Representation

    Taxation without representation is a situation in which a government imposes taxes on citizens who have no representation to voice their views.
  6. Markets

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  7. Managing Wealth

    10 Checking Accounts the Ultra Rich Use

    These accounts – created specifically for the wealthy – come with special extras such as personal bankers, waived fees and the option of placing trades.
  8. Personal Finance

    2015's Top Checking Account Promotions

    Open a checking account in 2015 and the bank could give you a cash bonus. Check out these top offers.
  9. Retirement

    How To Do a Background Check on Prospective Employees

    Discover why background checks can be extremely costly, tips for small businesses conducting checks on a budget and if professional checks can be avoided.
  10. Investing

    Banking: Making Deposits

    By Amy FontinelleMaking deposits is a key part of having a checking account. If you don't make deposits, your checking account will eventually run out of money and you won't be able to use it ...
RELATED FAQS
  1. How does bouncing a check affect my credit score?

    Learn the many indirect effects on your credit score when you bounce a check. Read Answer >>
  2. Could I deposit a check I received from Edward Jones, cancelling my IRA account, ...

    I had a SIMPLE Individual Retirement Account through Edward Jones while working for M. Potteiger, Inc. I stopped working ... Read Answer >>
  3. What is the electronics sector?

    Learn more about the electronics sector and the challenges and opportunities presented to electronics companies by new and ... Read Answer >>
  4. Can a checking account go negative?

    Find out about negative checking account balances and the ramifications. There is a price to pay, but smart consumers can ... Read Answer >>
  5. What US banks offer free checking accounts?

    Quit wasting money on monthly fees associated with your checking account and get a free checking account from reputable national ... Read Answer >>
  6. How do government-issued stimulus checks affect the economy?

    Stimulus checks are payments given to individuals by the government based on taxes paid in the previous year. The hope is ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center