Common use of CHECK COLLECTION Clause in Contracts

CHECK COLLECTION. MERCHANT authorizes SPS-EFT to represent all items that are returned to SPS-EFT and to originate an electronic entry for the amount of any allowable recovery fee. SPS-EFT shall have sixty (60) days from the date of a return check to complete the representment process. If this Agreement is terminated for any reason, SPS-EFT will retain the right to complete the representment process for all return check items prior to said termination. Any collection fees received by SPS-EFT in collecting returned checks shall be the sole property of SPS-EFT. SPS-EFT shall present the ENTRY no more than two times. SPS-EFT, for non- guarantee service, shall be entitled to assess a transaction fee (as set forth in the schedule of fees) from MERCHANT for each representment. If a check is returned unpaid after the second presentment, SPS-EFT shall be entitled to debit the MERCHANT’S account or offset such return amount from the next scheduled merchant settlement for the amount of the check (non-guarantee service only).