Fed publishes guide on electronic check conversion

Bank News, May, 2002 by Anonymous

A guide to help consumers better understand their rights and responsibilities with regard to electronic check conversion transactions has been published by the Federal Reserve Board.

The guide, When Is Your Check Not a Check? Electronic Check Conversion, discusses what electronic check conversion is, how consumers can tell if a check will be electronically converted, some of the differences between a regular check transaction and electronic check conversion, consumers' rights in an electronic check conversion transaction, and what consumers can do if they have problems with such transactions.

In an electronic check conversion transaction, a consumer authorizes the use of a check to obtain information for initiating an electronic debit from the consumer's account. The...