Skip to content
BOL Conferences
Thread Options Tools
#2156904 - 12/12/17 04:11 PM SnapCheck- HELP!
M&M Offline
Platinum Poster
Joined: Nov 2003
Posts: 530
Midwest
Our Treasury Management groups wants to onboard a company called SnapCheck. Apparently they facilitate digital checks for B2B or P2P payments, which avoids the ACH rails. From everything I've read, these digital checks aren't subject to Reg E or Reg DD. So, I'm struggling to understand what regulation, if any, applies? UCC? I know Bank of the West is listed on their site as a partner...

From SnapCheck's FAQ's, they say it is- "SnapCheck is a high speed, highly secure, and universally accepted solution dedicated to eliminating paper checks. SnapCheck’s financial service platform enables consumers, businesses, and partners to digitize payments by creating paperless checks. A SnapCheck can be written and sent instantly and works just like a papercheck when depositing it at an ATM, with a teller, or by an institution’s mobile app."

Any help or insight anyone can provide would be appreciated.

Return to Top
General Discussion
#2156928 - 12/12/17 04:50 PM Re: SnapCheck- HELP! M&M
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
What the website doesn't say is that the payee has to agree to accept SnapCheck payments. And if the payee wants to deposit a SnapCheck at an ATM or teller, I have to assume it would have to be printed out and the bank would have to agree to accept it. The idea that a SnapCheck could be deposited via an institution's mobile app is intriguing. It could mean it would have to be printed and then captured using the standard mRDC process. I am not aware of any mobile app will accept an image already on the depositor's phone (such as a SnapCheck image saved to the phone's Photos Gallery).

Or perhaps the payee's bank has to be signed up with SnapCheck to accept these payments.

I think that "universally accepted solution" is more than a bit optimistic. And I am not willing to sign up with SnapCheck to find out more.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2156931 - 12/12/17 04:59 PM Re: SnapCheck- HELP! M&M
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
There is an FAQ (https://gosnapcheck.com/?page_id=363) on SnapCheck's site. It confirms my suspicions regarding how a payee deposits a SnapCheck payment -- it needs to be printed out first.

We already get a lot a questions from bankers about accepting what are sometimes called "eChecks." Even Deluxe had or has a product that allows the emailing of a check (that has to be printed out to deposit it). What this sort of service does is allow for on-the-spot "issuance" of a check-like payment to virtually anyone, and it eliminates the lag time for mailing. What it doesn't do is guarantee that the payee will be able to negotiate the check once it's received and printed. After all, no one has to accept a check as payment, and there is certainly some skepticism out there about this sort of check delivery.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2156976 - 12/12/17 07:08 PM Re: SnapCheck- HELP! M&M
M&M Offline
Platinum Poster
Joined: Nov 2003
Posts: 530
Midwest
Thanks John. So, are these items subject to any regulation- E, DD or CC? I have a hard time embracing this vendor when I don't quite know the compliance risk associated with the clearing items.

Return to Top