Check Drafts with No Signature Required:
How to create a check draft with no signature.
Do banks take checks with no signature?
How can I deposit the draft with no signature?
Because you are
printing a "draft"
of the check, no signature is requited. CheckWriter will
automatically print a standard signature disclaimer that will be
accepted by any U.S. bank. Check drafts are treated just like a
check you get through the mail or over the counter when you
deposit them into your bank.
Basic software creates a
of the check for deposit only into any U.S. bank. When creating
the merchant is creating what is known as a demand item that
will be accepted for deposit in any U.S. bank, and will be
treated just like a regular check, except it is for
deposit only, not for cash.
drafting is simply creating a valid legal copy of the customer's
check. Because it is created by the merchant, no signature is
Article About: "What is a check draft?"
More information about Checks vs. Drafts:
important to fully understand the language of check acceptance
before you begin to deposit drafts generated by CheckWriter™.
With CheckWriter™ 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."
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 generated by a third party.
Uniform Commercial Code permits the process of drafting by
defining signature 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,
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.
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.'
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
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,
Click the following link for more information about:
banks take check drafts?"
"Substitute Check Law" known as Check 21, has greatly increased
the use of check drafting.
Click this link for more information on Check 21 and Check 21
Checks by phone:
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