DEFINITION of 'Check Representment'

Check representment is a service offered by banks that resubmits a bounced check to the check writer's account until funds are available for payment. In the check representment process, the bounced 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'

For businesses that rely on incoming checks, there are many benefits of check representment. It gives businesses another opportunity to collect payment for products supplied or services rendered, eliminating the time and expense of the collections process.

It also enables a bank to flag accounts that have a history of bounced checks, allowing the bank to warn a businesses of potential non-payment, so that it can require advance payment. Representment also often gives checks priority over paper checks, and they have lower handling costs and shorter processing times.

  1. Check

    A check is a written, dated and signed instrument that contains ...
  2. Regional Check Processing Center ...

    Regional Check Processing Center - RCPC - is a local Federal ...
  3. Rubber Check

    A rubber check is another name for a "bounced check," which does ...
  4. Bad Check

    A bad check is a check drawn on a nonexistent account or on an ...
  5. Substitute Check

    A substitute check is a paper reproduction of a check that is ...
  6. Crossed Check

    A crossed check is a check that is crossed with two parallel ...
Related Articles
  1. Personal Finance

    Certified Check vs. Cashier’s Check: Which Is Safer?

    Cashier's checks and certified checks are both official bank-issued payments that offer more security than personal checks, but one may be safer.
  2. IPF - Banking

    How to Write a Check in 5 Easy Steps

    For those of you who are new to check writing, here is a step-by-step guide on how to fill one out.
  3. Personal Finance

    The 4 Most Costly Banking Mistakes

    It's difficult to avoid bank charges, but taking the time to avoid these four costly mistakes will save you money.
  4. Investing

    Best Checking Accounts for Small Businesses

    Accounts with big banks offer frills, such as mobile and text-based banking but for smaller businesses, local banks and credit unions can save money.
  5. Tech

    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.
  6. Personal Finance

    Is A Premium Checking Account Worth It?

    Premium checking accounts give you free checking and other perks in return for keeping a certain balance in the bank. Is that the best use of your money?
  7. Small Business

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business – and where to look.
  8. Personal Finance

    Your Second Chance at Checking

    If you've made a few banking mistakes in the past, several banks offer "second chance" checking accounts that overlook your history.
  1. What is the best way to measure the total market?

    There is a variety of market indices which function as statistical gauges of the market's activities. Many investors look ... Read Answer >>
  2. The Consequences of Overdrafting a Checking Account

    Checking accounts can become negative if you have an overdraft protection program without fund transfer capabilities, but ... Read Answer >>
Trading Center