1. For every 100 checks returned unpaid, approximately 79 are returned for non-sufficient funds, (“NSF”). The rest we call Hard Money checks, a term we use to describe checks such as “Stop Payment”, “No Account Found”, “No Such Account”, “Fraudulent” and more. Because most NSF checks are honest mistakes on the part of the check writer, more than 83% of all NSF checks are cleared on the first re-deposit. Another 5% to 6% will clear on the second re-deposit. NSF is easy money. The face amount of the check plus a state allowable returned check fee is swept directly from the check writer’s account electronically. When the funds are received and cleared, you get paid the full face amount of the check. The check collection company keeps the fee.
   
   
2. Companies that guarantee checks will make even more money processing your NSF checks. They sell or lease you expensive equipment and charge you swipe fees for every check you run through the scanners, including all your NSF checks. Even though checks will bounce, they know 89% of all NSF checks will eventually clear.
   
   
3. But what about the loss your check guarantee company takes on those Hard Money checks that don’t clear?

Oh, well they make up the loss by charging you monthly equipment and swipe charges!

BUT ... DIDN’T YOU KNOW THAT?