FSTC’s eCheck effort has been designed with cautious consideration paid to the financial institution operational and business points. It will result in proposal of an open trade standard, in mid-1998, for electronic checks, once the system’s effectiveness is demonstrated. In the previous several years there have been a large quantity (over 50) of various Internet fee efforts and new proposals.
Under the Check law, a cost (examine) is an obligation of the issuer, not of the bank. In truth, the depositing financial institution might apply a funds availability schedule to its clients to restrict entry to the funds till they’re really collected from the paying bank. Banks are comfortable with these risks, and may permit any customer with an account to deposit checks.
Electronic verify processing is somewhat similar to paper verify processing, only sooner. Instead of a buyer manually filling out a paper check and sending it to the … Read More
