Merchants who choose LML’s electronic check processing services can additionally select a specific recovery option for transactions that are returned by the consumer’s bank.

These merchants will typically see significant benefits from lower collection costs and write-offs.

The first step to reducing losses is LML’s authorization system. The system incorporates stricter criteria for first-time consumer usage, with less restrictive criteria applying to consumers with a successful transaction history.

Further benefits result from faster electronic clearing that identifies returned checks days earlier – usually within 48 hours instead of 7 to 15 days for paper checks. The returned item automatically updates the negative database, radically reducing the opportunity to pass another NSF check; the earlier start to collection activities increases chances of recovery.

To meet the needs of different merchants, LML offers three recovery options:

• Under "Assured Payment," all risk and liability for returned items passes to LML. The merchant is assured of payment, just like a credit card transaction: the merchant has no collection or recovery activities and no need to make applications for reimbursement as required by a check guarantee company. Pricing for LML’s "Assured Payment" is typically below the threshold cost of accepting payment by credit card;
  
  
• Under "Automated Recovery," the merchant retains liability for returned items but LML will attempt to collect returned items on behalf of the merchant by resubmitting the returned items electronically. Returned items are reversed against the merchant’s account, but if automated recovery is successful, funds recouped are credited 100% to the merchant. LML assesses a collection fee against the consumer’s account, authorized by the consumer’s signature on the transaction receipt;
  
  
• Under "At Risk" (client retained) processing, the merchant retains liability for returned items and takes responsibility for collections and recovery.

For more information about our services, contact LML Payment Systems – consumer friendly, merchant driven.