What happens to checks that cannot be processed?

When checks cannot be processed, they are typically sent to a checks collections department. This department specializes in managing and collecting on funds that are not successfully processed. The reasoning behind this is that unprocessed checks may indicate insufficient funds, account closures, or fraudulent activity, and the collections team has the expertise and resources to handle these situations appropriately. By routing these checks to a dedicated department, the organization can ensure that follow-up actions are taken to recover the funds or to address any issues more thoroughly. This process also helps protect the organization from potential losses associated with unfulfilled transactions.