FARS Check Recovery

Unfortunately, school districts occasionally receive checks that are returned due to insufficient funds. The Federal Automated Recovery Systems (FARS) helps educational organizations successfully recover funds.

FARS, a subsidiary of the Infinity Business Group of Companies, is governed by the National Automated Clearing House Association, as are banks. It helps schools recover checks that are returned NSF (not sufficient funds) or are otherwise dishonored by the bank.

The Arkansas School Boards Association endorses this program and encourages school districts to participate. This keeps school employees from having to track down parents and employees to recover funds.

Districts are never billed for NSF checks recovered electronically. The check writer pays the NSF check fee as allowed by state law.

For checks that cannot be collected electronically due to age of check (over 6 months old), closed account or stop payment, FARS will initiate “hard collections” on your behalf. Because this process is complicated and costly, FARS will forward 75 percent of the face amount of the check to the district, keeping 25 percent to defer costs.

All NSF checks collected are paid daily (FARS reimburses each business day after holding funds for seven days as required by law). FARS cannot guarantee when or if a check will be collected. Experience shows collection of up to 85 percent of received checks. This collection rate varies by organization.

Click here to view the FARS brochure. For more information, e-mail ASBA at arsba@arsba.org or call 501.372.1415.