Are there any special laws I need to comply with in using ChekFaxx?
YES! On January 1, 1996 a new law became effective from the Federal Trade Commission. Any telemarketing firm accepting check information over the telephone, FAX, or other electronic means, must have a verifiable procedure in place. Any of the following are acceptable procedures for producing customer bank drafts: 1. Receive written authorization from your customer by fax or mail. 2. Tape-record the authorization with your customer’s knowledge and approval. 3. Mail out written notice to your customer prior to depositing the check in your bank account. Notice must be in the mail prior to you making the deposit. ChekFaxx complies with item #3. By simply mailing the Check Authorization Notice portion of the printed check to your customer prior to depositing it for collection, you are meeting the above requirement of the law.
