- Is collecting checks electronically legal?
- What else do I need?
- Can I use a bubble jet printer?
- Do I need any other software?
- What do banks think?
- Can companies out side of the U.S.
use this program?
- What if my customer has concerns
about electronic check collection?
1. Is collecting checks electronically legal?
As of September 1998, Yes.
NACHA and the Federal Reserve made collecting NSF checks electronically
legal in all states. This became a rule in 1999.
2. What
else do I need to collect NSF checks?
An IBM compatible
computer, preferably at least PII-233 with 96MB RAM, 100MB free disk space,
dial up connection, printer and fax machine. A CD burner or zip drive with a UPS
is recommended.
3. Can
I use a bubble jet printer?
Many users
use Bubble Jet Printers or Ink Jet Printers. Our
company uses a HP Laser 4 Plus
to run our reports because it is less expensive.
4. Do I need any other software?
No. Our software is a stand alone software
but can integrate with other software such as Microsoft Access.
5. What
do banks think?
Since this is legal,
banks must accept the transactions. Banks also must honor their customers
requests and sometimes the transaction may be reversed. This is because
the customer is disputing the validity of the transaction. A new rule by NACHA
states that the customer faces perjury charges for making a false statement.
6. Can companies out side of the U.S.
use this program?
NACHA and the Federal Reserve
will only allow this to be done in the US on US banks.
7.What if my customer has concerns
about electronic check collection?
Why would they even be concerned
unless they know the check will be returned? You could also explain that
this is actually less intrusive and embarrassing than calling them to come
in and pay in person.
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