Check Acceptance Policies and Guarantee:

    - Will the check be good?
    - Do banks accept checks by phone?
    - Will all banks accept CheckWriter drafts?
    - Are banks required to accept my deposits?
    - Is there a funds guarantee?

Overview:
CheckWriter™ software creates a draft of the check for deposit into any U.S. bank.  When creating a check draft, the merchant is creating 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.

Check drafting is simply creating a valid legal copy of the customer's check. Because it is created by the merchant, no signature is required. A check draft, also called a demand draft is for deposit only.

The Uniform Commercial Code permits the process of check 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, Exceptions.

Reasons for denial include, but are not limited to the following:

1. History of making deposits that are returned for stop payment, NSF, refer to maker, UTL, unable to locate, invalid MICR or other returns.

2. Creating suspicion about the items for deposit. This includes asking the teller or manager if the item is legitimate, asking if the item is likely to clear or be returned, questioning the legality of the deposit.

3. Depositing one or more improperly printed items.

If a bank official thinks there is any reason to refuse your items for deposit, they can refuse the deposit under Federal Reserve regulation J. Banks are as likely to refuse certain cash deposits for the same reasons.

For example, if you go into the bank with a $2,000 deposit and explain to the teller while your deposit is counted that some very suspicious characters came into your store today and you think some of the bills you are depositing may be counterfeit.  This will cause red flags to go off - the teller could refuse the deposit, or allow the deposit but put a 7 or 14 day hold on the funds, pending authentication of the bills where suspicion was created.

Another example would be going to the bank with $200 in quarters rolled in paper rolls.  Depositing these item with confidence would cause no suspicion, but making a statement like, "my 10 year old son rolled these up, I wonder how accurate he really was?", would cause the teller to either refuse the items, or spend considerable time counting or weighing the coins.  Some banks may impose a surcharge or require the account number then be stamped on every roll.

This can also happen with checks or check drafts.  Going up to a teller and asking if drafts you created at your business are legitimate, or if they are accepted at the bank will immediately raise flags.  The natural reaction of most teller, bank managers, and bank call center representatives would be to tell the client, "no". Check drafting requires no special license, only the permission of the account holder. 

CheckWriter™ brand software 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 a relationship already exists.

Conclusion:
CheckWriter™ software will automatically format the check draft to comply with all current banking regulations.  When used properly, pending any suspicion the end user may cause on their own, drafts printed by CheckWriter™ brand software are guaranteed to be accepted by your bank.

Checks by phone:
Learn how to take checks by phone.

Not convinced? Click Here to see why you should choose CheckWriter™.