What is the maximum dollar limitation for RCK Entries?

What is the maximum dollar limitation for RCK Entries?

• A. $1000
• B. $2500
• C. $5000
• D. $10,000

Answer: (B)

The maximum dollar limitation for RCK (Re-presented Check) entries is indeed $2,500. RCK entries are used by financial institutions to collect funds from a check that was originally returned due to insufficient funds or other reasons. The limit is set to protect consumers and ensure that the ACH network maintains efficiency and minimizes risk. By keeping the RCK entry limit at $2,500, the payment system can help reduce potential loss scenarios for both consumers and financial institutions while facilitating the re-collection of returned checks effectively. In contrast, other higher amounts listed in the choices exceed the established limit for RCK entries, making them not applicable. The $1,000 limitation is a too low threshold and does not reflect current regulations. Therefore, the correct maximum dollar limitation aligns precisely with the established guidelines for RCK entries in the ACH Network.

The maximum dollar limitation for RCK (Re-presented Check) entries is indeed $2,500. RCK entries are used by financial institutions to collect funds from a check that was originally returned due to insufficient funds or other reasons. The limit is set to protect consumers and ensure that the ACH network maintains efficiency and minimizes risk. By keeping the RCK entry limit at $2,500, the payment system can help reduce potential loss scenarios for both consumers and financial institutions while facilitating the re-collection of returned checks effectively.

In contrast, other higher amounts listed in the choices exceed the established limit for RCK entries, making them not applicable. The $1,000 limitation is a too low threshold and does not reflect current regulations. Therefore, the correct maximum dollar limitation aligns precisely with the established guidelines for RCK entries in the ACH Network.