Version
7 User's Guide
About CheckWriter™ & Check Drafts
CheckWriter™ is a very powerful software package. It gives you
the ability to print a draft of your customer’s check after you
obtain authorization to do so. You MUST use
this technology responsibly.
Please understand the
language of check acceptance before you begin to deposit drafts
generated by CheckWriter™. With this software you are accepting
the customer’s check information, and creating a "DRAFT"
of their check for deposit.
Because no signature is required once you obtain authorization
by phone, fax or over the Internet, you can create a draft with
"No Signature Required."
No bank will accept a "CHECK" that does not have a signature, or without special magnetic ink in the MICR code line. However, banks will process a "DRAFT" this way. Drafts differ from checks because although they are authorized by the accountholder, they are created by a third party.
The Uniform Commercial Code
permits the process of drafting by defining signature ["signed"] in the
following regulation: Uniform
Commercial Code, Title 1, Section 1-201 (39).
This regulation only makes check drafting possible, not
"required." Your bank may deny your items for deposit if they
have reason to be suspicious. Suspicious items are covered in
Regulation CC 229.13, Exceptions.
Check drafting requires no special license, only the permission
of the account holder.
CheckWriter™ will help telemarketers comply with the FTC
Regulations 16 CFR 310 in
regard to proper record keeping. This regulation only applies
to outbound telemarketers, and does not cover inbound calls or
transactions between customers where and relationship already
exists.
These drafts comply with all known U.S. standards and should only be printed on security bond check paper: Federal Reserve Board of Governors Regulation 'CC.'
If you approach your branch, be sure you word your questions carefully. Most branch managers and tellers do not know much about this technology, and may even tell you they do not accept such items.
Asking questions of your
bank where you raise doubt as to the validity of the items may
cause the bank to to hold items under Regulation CC 229.13, Exceptions.
Specifically:
Regulation CC 229.13 (e) Reasonable cause to doubt collectibility--(1) In general. Sections 229.10(c) and 229.12 do
not apply to a check deposited in an account at a depositary
bank if the depositary bank has reasonable cause to believe that
the check is uncollectible from the paying bank.
Reasonable cause to believe a check is uncollectible requires
the existence of facts that would cause a well-grounded belief
in the mind of a reasonable person.
The new "Substitute Check Law" known as Check 21, has greatly
increased the use of check drafting. Here
is more information.
We recommend you try a test draft first if you are unsure of your bank's handling of these items. Print a copy of one of your own checks from CheckWriter™, and deposit it into your own account. Endorse the draft and fill out a deposit slip as you normally do. Bring it to the teller, or deposit it into the ATM or night drop. It will clear in just a couple days, just like a regular check.
Drafts must be printed properly to be accepted. Improperly printed drafts will be returned to you without question. Do not deposit any draft unless you are positive that it is printed properly. If you have any questions about the validity of your item before deposit, please contact technical support by calling the number on the front of your CD, or open a support issue at http://checkwritersupport.com.
See the symbology section
of this manual if you have any other questions about coding the
MICR line of your drafts.
Before using CheckWriter™ for the first time be sure to Register CheckWriter™ and read, then agree to the License Agreement.
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