Check recovery is one of the most annoying aspects of being a merchant or retailer. And since Americans write almost half a billion bad checks each year, it's a serious problem. While banks just have to sit around and collect bounced check fees for up to $30, it's the business owner who has to divert resources toward check recovery services.

Because so many checks are bounced in the U.S. each year, check recovery is a frequently demanded service--more than ever before. However, for the business owner, paying a collection service isn't worth it, especially when the value of the bad check is less than the recovery fee. In the long run, the banks win and the merchants end up losing.

Alternatives to Check Recovery

One way to avoid recovering bad checks is to not accept them in the first place. While this is easier said than done, there are check verification services available; you've probably seen those little black boxes next to the cash register at the grocery store. They verify that the funds are in your account and then they take the check.

Another option that overworked business owners use is the most obvious: when they receive a bad check, they will redeposit it later and hope that it clears. There are also lending services that will recover bad checks without service fees or set-up charges. They claim to recover as many as 80 percent of the bad checks written to you, and the entire face value of the checks.