Is taking checks by fax legal?
Check demand drafts, or “drafting” funds from a second party’s checking account, have been a method of payment for more than 8 years, usually in collections. Telephone checks (pre-authorized paper bank drafts) are completely legal. The primary requirement is that the checking account holder (your customer) must give you verbal or written pre-authorization, such as faxing you their check. Once you’ve received pre-authorization, you really don’t even need a signature on the paper-draft, just as you don’t need a signature on a phoned in credit card order. Paper drafts are explicitly established as a legal method for payment as provided in: Uniform Commercial Code, Title 1, Section 1-201 [39] and Title 3, Sections 3-104, 3-403, 2-403 Code of Federal Regulations, Title 12 Chapter II, Part 210 Regulation J, Federal Reserve Bank, Part 2, Sections 4a-201 to 4a-212 Also see Romani v. Harris, 255 Md. 389. The Federal Trade Commission in late 1995 proposed rules that became law in January 1996 (R
Check demand drafts, or drafting funds from a second party’s checking account, have been a method of payment for more than 8 years, usually in collections. Telephone checks (pre-authorized paper bank drafts) are completely legal. The primary requirement is that the checking account holder (your customer) must give you verbal or written pre-authorization, such as faxing you their check. Once you’ve received pre-authorization, you really don’t even need a signature on the paper-draft, just as you don’t need a signature on a phoned in credit card order. Paper drafts are explicitly established as a legal method for payment as provided in: Uniform Commercial Code, Title 1, Section 1-201 [39] and Title 3, Sections 3-104, 3-403, 2-403 Code of Federal Regulations, Title 12 Chapter II, Part 210 Regulation J, Federal Reserve Bank, Part 2, Sections 4a-201 to 4a-212 Also see Romani v. Harris, 255 Md. 389. The Federal Trade Commission in late 1995 proposed rules that became law in January 1996 (Reg
