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. Electronic Check

    A form of payment made via the internet that is designed to perform ...
  2. Bounced Check

    A slang word for a check that cannot be processed because the ...
  3. Check Conversion

    A reformatting service offered by banking merchants. Check conversion ...
  4. Check

    A written, dated and signed instrument that contains an unconditional ...
  5. Electronic Check Presentment - ...

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

    A local Federal Reserve facility where checks that are drawn ...
Related Articles
  1. Personal Finance

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  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. Investing

    What is a Cashier’s Check?

    A cashier’s check is a check written on a financial institution’s funds.
  4. Financial Advisor

    Trendlines

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

    A Guide to Bank Accounts

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

    Top Premium Checking Accounts of 2015

    Which banks offer the best deals for premium checking accounts – and what do you have to do to qualify for one?
  7. Personal Finance

    5 Useless Financial Products That Will Disappear Soon

    Bank deposit slip: what's that? Everyday tools of our financial life that went from indispensable to obsolete.
  8. Managing Wealth

    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. Investing

    The Best Small Business Checking Accounts in 2016

    Accounts with big banks offer frills, such as mobile and text-based banking – but for small businesses, local banks and credit unions can save money.
  10. Small Business

    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.
RELATED FAQS
  1. How long does it take a check to clear?

    It usually takes two days for a check to clear, but in some cases it may take longer. Discover how banks treat large deposits ... Read Answer >>
  2. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  3. 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 >>
  4. In what ways has technology helped to reduce float?

    Learn more about the impact of float on the U.S. monetary system and how technology has changed the amount of float as measured ... Read Answer >>
  5. 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 >>
Hot Definitions
  1. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  2. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  3. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the ...
  5. Border Adjustment Tax

    A tax levied on goods based on where they are sold – exported goods are exempt from tax; those imported and sold in the ...
  6. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
Trading Center