The Federal Payments division of the ePayments Group of Companies, a leading electronic payments processing and support services company, has announced the acquisition of Federal Check Recovery of Columbia, Mo.
Under terms of the agreement, ePayments Corp.'s Federal Payments division will acquire the electronic check recovery accounts of Federal Check Recovery, increase staffing and continue to work with the former company management.
"Recovery of NSF checks through electronic transactions is revolutionizing payments processing," said ePayments Corp. CEO Paul Lufkin. "Government agencies and municipalities that struggle with bad check collection represent a tremendous growth opportunity, and our Federal Payments division along with subsequent acquisitions will strengthen our penetration into this market."
National Automated Clearing House Association (NACHA) rules allow checks returned for non-sufficient funds (NSF checks) to be recovered electronically. ePayments Corp. leverages the power of the Automated Clearing House (ACH) Network to recover funds from the check writer's account for the amount of the check and also recovers state-allowed processing fees.
Lufkin explained that account management will be handled through ePayments Corp.'s Denver offices, with additional staffing expected to be added due to the rapid growth of the Federal Payments division. He added that the former owners of Federal Check Recovery will continue to be affiliated with the growth of the business, focusing on developing new marketing channels to expand payment processing services.
A privately held company founded in 2003 in Columbia, Mo., Federal Check Recovery is a pioneer in the check recovery and payments processing industry. Federal Check Recovery delivers services throughout the United States through trade associations as well as through direct sales to merchants.