Do you allow wire transfer applications via fax machine? what type of authorization is signed. We currently have customers that we allow to do this, we only had them sign our normal telephone authorization form. what special verbiage is needed for fax or email wire requests?

Without a formal wire transfer agreement that establishes commercially reasonable security procedures for wire transfers agreed to by both parties, this is a very dangerous practice. Under the UCC4A, all the the customer would have to do is say they never sent the FAX nor authorized the wire transfer and the bank would basically have to eat it. Depending on the size of the transfers that you allow - it could break the bank.

I agree with Randy. Our Wire Transfer Agreement includes a waiver of liability for facsimile originated wire transfers. Of course, the Customer is responsible for using a six digit security code with all facsimile requests and larger dollar amount require call-back verification to the business. We try to discourage the service, as we have an internet based approach which offers greater security.

Can anyone tell me where I might find a sample wire transfer agreement form? We recently had an independent audit and that was one of their recommendations...that we utilize one...especially for business customers. I have been looking everywhere I can think of, to no avail. Thanks in advance!

Google "wire transfer agreement" and you can get some examples. However, you should engage your legal counsel in the actual drafting process.