Answer:
This requires a little explanation. In the past, the rule of thumb was that if the withdrawal originated on paper it was exempted from Reg E but the coverage rules under Section 205.3(b)(2) tell us that checks used to initiate a one-time transfer (electronic check conversion) are included. The check itself never enters the payment stream. It was simply the access device used for the transaction.
First published on BankersOnline.com 1/15/07