QUESTION: What's the scoop on e-checks? Do you think they are a good thing for
financial institutions, or a bad thing? Do we need to revise our
deposit account agreements to protect ourselves? What do we need to
know?
ANSWER: It's hard to say at this time whether it's a good or bad thing. The electronification of payments is continuing to increase, however, so the best thing to do is learn to properly and efficiently accommodate this form of payment.
Two things you need to be concerned about: l) We're hearing lots of reports of customer confusion about electronic check conversions. Some cashiers are not doing an adequate job of explaining to the customer what will happen with the item, so customers don't understand it when they see it on their account statement. 2) There have been some glitches, with merchants sending through both an electronic debit and the check, meaning the customer's account gets debited twice. You may want to initiate your own education effort to inform customers about e-checks. Also, make sure your system properly reflects these transactions for statement purposes!
BankersOnline is a free service made possible by the generous support of our
advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all
banking professionals. Support our advertisers and sponsors by clicking
through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
