In December 1999 the FRB issues an amendment to Subpart C of Regulation CC. In reading this rule suggests that a check can be returned electronically if the bank truncates. I remember reading something recently that indicated that a check returned electronically would not be covered under Reg E, but that any fee imposed for the return would be.

I've reviewed Reg CC and I really don't see where it allows this. Does anyone know if we can make returns electronically when a check has been issued originally and we have access to the check?

If so...where can I get information on this.

NACHA has a number of good publications available - see
http://pubs.nacha.org/echeck.html

The Regulation E provision referred to above indicates that an ACH "RCK" (Represented Check) entry is not covered by Regulation E, because it originated as a paper check. The RCK entry is an ACH debit originated by the payee (or his agent) of a bounced check to collect the amount of the check. By similar logic, electronic return of a check would not be covered by Reg. E.