Federal Automated Recovery Systems (FARS)……… The School System Solution

School systems across America are being fiscally responsible by partnering with FARS. FARS provides an efficient method of electronically recovering the NSF (Non-Sufficient Funded) checks that are passed through the school system accounts everyday.

The Problem: NSF check writers consider school systems without electronic recovery capability as easy or “soft” targets since the districts do not have the staff, time, resources, or training to efficiently recover this bad business. (This should not be the job of a bookkeeper or financial manager since every parent interface of check recovery is actually a public relations event). Bookkeepers and financial managers struggle with traditional methods of tracking, calling and dealing with NSF check writers throughout the school year. Calculate the number of worker hours spent during the school year at all staff levels (to include principals in many districts) chasing down “bad” business when their valuable time should be focused on their productive contributions in positive areas.

The Solution: Protect every bank account within the district (General Accounts, Food Service, Pupil Activity, After School Programs, PTO/PTA, etc.) by partnering with FARS to benefit from electronic check recovery for the fiscal protection of school accounts.

The Method: FARS utilizes the 1998 NACHA (National Automated Clearing House Association) rules for the Federal Reserve and banking industry that provides for merchant protection by electronically recovering dishonored checks. FARS serves thousands of merchant, professional, organizational, and school system clients. Two school district tailored options are available:

Our cornerstone service provides a Guarantee of all NSF checks with a face value up to $250.00. FARS electronically credits 100% of the face amount of the check to the originating business account at the district. In addition, when permitted by individual state law, FARS will credit the NSF bank fee charged to the school or district by the school’s bank back to the school or district’s account. This is done if the fee is recovered. The check writer’s phone number must be included on the check in order to receive the guarantee.

The District’s Cost For Service: None. The district pays not upfront, retainer or annually renewing fees for the protection. There is no budget appropriation necessary to review to enjoy the benefits of the FARS service. The NSF check writer pays for the district’s protection through the state’s mandated return check service fee. FARS receives revenue for services rendered through the state fee that is electronically recovered for each NSF check. This is the same state fee that all consumers are subject to when doing business by check.

Program Implementation: A streamlined implementation process enables FARS to begin electronic recovery generally within two weeks of the district’s decision to fiscally protect themselves for the benefit of those within their district community. Every account is provided a secure website to see the real-time status of each check being processed (including scanned images of all checks).

Any questions or to begin this program contact: J.D. Williams Insurance Marketing, Inc. 800.228.1406