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.