Consolidated Returns is the redirection of a returned check from your bank, referred to as the “Bank of 1st Deposit”, to a bank that charges a substantially reduced item fee. Depositing checks is done in the normal manner, but a customized deposit stamp on the back of the check notifies the Federal Reserve to divert any returned checks to e-CAP, instead of sending them back to your bank.
Normal NSF Check Flow
RESULT: Merchant’s bank now debits the merchant's account for $25.00, plus a $5.00 returned item fee for a Total debit of $30.00. | Consolidated Return Check Flow
RESULT: To regain its funds, e-CAP initiates a debit to the merchant’s account for $25.00 plus a small consolidation fee. |
Because the actual paper check never goes back to the merchant's bank, the typical $5.00 returned item fee is never charged. Instead, a much lower fee is charged by e-CAP to offset the cost of handling the returned item and debiting your account for the dollar amount of the return. This saves the merchant hundreds even thousands of dollars a month. |
