Fed Works on Legislation to Boost E-Check Usage

Share this content:
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.

Loading links....

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here