Overview

flowchart LR
    A[Merchant/LMS] -->|1: Dropoff files| B[Files]
    B@{ shape: docs}
    B -->|2: Files sent to Flex| C[FLEX]
    C -->|3: Confirm receiving of files| A
    C -->|4: Transaction info sent| D[Bank]

RCC Transactions

RCC stands for Remotely Created Check. This is a digital version of a paper check that your business can create and submit on behalf of a borrower, without needing their physical signature.

These checks are legally authorized by the borrower through verbal, electronic, or written agreement, and are processed through the U.S. check clearing system. RCCs are especially useful when:

• A customer authorizes a payment over the phone or through a digital form
• A compliant fallback method for collecting loan payments is needed

Typical Use Cases

• You’ve received verbal or written authorization from a borrower to debit their account
• The borrower’s bank account doesn’t support ACH or real-time payments
• You’re collecting a one-time payment via phone or manual entry

How Does It Work?

1. You collect the borrower’s routing and account number.
2. You initiate the payment request through your LMS or dashboard.
3. Our system creates a compliant digital check and sends it through national check clearing systems (and a physical check is kept on file).
4. The borrower’s bank reviews and processes the check.
5. You receive a status update: the check either clears successfully or is returned (e.g., for insufficient funds).

Benefits of RCC Include:

• No need for physical checks or signatures
• Faster fallback when ACH is unavailable
• Still supported by most banks
• Useful for manual or phone-based collection workflows

Things to Keep in Mind

• You must retain proper borrower authorization
• RCCs can only be voided before they are submitted to the check clearing system
• Settlement time is typically 1-3 business days
• Returns may happen if the account is closed, overdrawn, or disputed

RCC vs. Other Payment Types

Feature	RCC	ACH	RTP / InstaPay
Requires tokenized data?	No	Yes	Yes
Real-time processing?	No	No	Yes
Can be voided?	Yes (depends)	Yes (depends)	No
Requires borrower signature?	No	No	No
Speed	1-3 business days	1-2 business days	Seconds

Summary

RCC is a powerful fallback tool that gives your business flexibility in how and when you collect payments. While it’s not real-time, it remains a reliable, legal, and compliant way to debit borrower accounts, especially when authorization comes through phone or manual entry.