Fed Works on Legislation to Boost E-Check Usage

Share this article:
The Federal Reserve is working with trade and consumer groups on draft legislation aimed at increasing the use of electronic checks, the Fed said yesterday.


Current law often requires original handwritten checks to be transferred between banks, unless the banks involved have agreed to transmit check information electronically. Fed vice chairman Roger Ferguson said difficulties in getting large numbers of banks to sign such agreements have slowed down the process of presenting checks for electronic payment.


Under the draft legislation, banks could substitute a machine-readable digital copy of a check that would be the legal equivalent of the original paper document.


Ferguson said the law would allow banks more flexibility and could increase the number of banks that accept electronic checks for collection and presentment.


Share this article:
close

Next Article in Opinions

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Opinions

The One-to-One Future Is Now

The One-to-One Future Is Now

Editor-in-Chief Ginger Conlon offers her take on what it means to make an impact on the marketing industry.

Leading by (Poor) Example: Answers

Leading by (Poor) Example: Answers

The VP of marketing has been a little lax in his definition of the term "business expense" and it shows. See how our readers would handle this thorny situation.

Attention Marketing Consultants: Protect Yourselves

Attention Marketing Consultants: Protect Yourselves

A lot can go wrong when you're a marketing consultant—but there are plenty of ways to safeguard yourself if you're smart about it.