We get between 4-7 per year on average. We usually send a letter and charge the fee the bank charges us. Sometimes it takes a second letter and then a call. We do not usually send it registered, although, that is probably the correct way to do it.
Tim, what would an automated system be like? Could you elaborate... never heard of something like that. It sounds like a good idea though.
We proably get 3-4 bounced checks per year. We send a letter to the person notifying them of the situation and request that they pay us the amount of the check plus any fees our bank charges us. Usually they respond right away.