TELECOM Digest OnLine - Sorted: Re: New Electronic Check Law Sinks 'Float'

Re: New Electronic Check Law Sinks 'Float'

Isaiah Beard (
Tue, 02 Nov 2004 10:57:16 -0500

DevilsPGD wrote:

>> Quite the reverse actually. If they send the check along
>> electronically, then the original is destroyed.

> Interesting -- So if I say I wrote a different dollar value on the
> cheque, and the electronic copy isn't sufficient to provide proof one
> way or the other, does the transfer of funds get reversed?

Not sure I understand. The digital copy is going to be an electronic
check image (similar in nature to what you get in online banking tools
today). Basically a scanned black and white copy of the check you
wrote. Do you mean what would happen if the check image wasn't of
sufficient quality to be readable?

I do know that the new law offers provisions where a bank must credit
funds while a dispute and investigation are pending. And I would
guess that if the image isn't usable or clear enough to figure out
what happened, they would treat the situation as if a physical check
had somehow been mutilated beyond recognition in transit (does anyone
know how banks handle such a situation? I can imagine it has to have
happened at somepoint).

> Nothing is fool-proof to a sufficiently talented fool.

I agree. It's going to be interesting. I have a check card and
occasionally use electronic bill payment, but I used to prefer sending a
check out in the mail to pay bills. Not because of float, but because I
liked the idea that a physical, tangible paper copy of my payment was
available, as well as a physical endorsement acknowledging receipt of
payment on the same piece of paper, in case there was ever any dispute.

Now, there's no guarantee of even that.

So I guess I'll be using my Visa check card for bill payments for a
while, since it claims zero liability in disputes. At least that'll
be the case for a few months, until any bugs with the new check
clearing system is ironed out.

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