[wig]

Originally posted by puchih@Jul 4 2003, 01:24 AM
Yes, we do, actually. We haven't done any "chargeback" type activity (i.e. customers who reverse a settled ACH transaction). What we are doing is going after customers for NSF transactions. In fact, we're very successful getting money from NSF transactions. Remember, in the United States it is a crime to bounce a check. I'm going to use you as an example wig...

Suppose you bounce a check with one of our clients. Our mission is now to recover the NSF fee for our client (usually about $3-4 depending on the processor) along with a little bonus. So, we do a little digging. By looking at your sign-up informtion and phone number, we will find out where you live. Let's say you live in Austin, Texas. I know that you're in Travis county. I also know that the county attorney for Travis county is David Escamilla. Our in-house collection agency has a copy of the NSF laws for every state, so I know that in the state of Texas, failure to pay me on an NSF check within 10 days after notice by certified mail is prima facie evidence of intent to defraud, which makes passing the NSF a misdemeanor crime under Sections 31.03, 32.41, and 132.9022.

I will then send a registered letter to the address I have on file for you stating what I just said above. I'll also be calling you just to make sure you know. My letter will state that if you don't pay me within 10 days, I will turn over all evidence of the NSF transaction for prosecution under Texas law to the office of:

The Honorable David Escamilla
314 W. 11th St., #300
Austin, TX 78701
Phone: (512) 854-9415
Fax: (512) 854-9316

Imagine for a minute you got a letter to that effect in the mail -- with a notice that the NSF would be turned over to your local county attorney. Would you pay? I bet you would. Most of our clients' NSF customers pay also -- they get back whatever the amount of the transaction was, plus a $20 NSF fee that we ask for. Usually their ACH provider is charging them way less than $20 for an NSF item, so they're making some money here.

Just like with chargebacks, we give them a polite e-mail first asking them to mail in payment. We never get nasty until the customers stop doing what we ask. Hope this clears things up with regards to ACH.

Thanks for the reply. WTS actually does all this currently for our Merchants.

Perhaps there is a strategic alliance opportunity for us in another area. Will you be in Florida?