An incentive to accept electronic return checks

Answered by:

Question:

Is there an incentive for a depositary bank to accept returned checks electronically?

Answer:

Yes. A paying bank or returning bank may be liable to a depositary bank for failing to return a check expeditiously only if the depositary bank has arrangements in place allowing the paying bank or returning bank to return the check electronically, directly or indirectly, by commercially reasonable means.

--------------------------

Learn more about John Burnett’s

Regulation CC: Check Collection webinar.