When-Is-Your-Check-Not-a-Check-When-Is-Your-Check-Not-a-Check by csgirla


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									When Is
   t a Check?Doe
   allow me to u
   more than on
John Doe                                        1234
111 Oak Drive
Hometown, ST 00000

ORDER OF                                  $


       Hometown Bank


  1234566789           7890   1234 0000
                                                                                 What is electronic check                          will be given a copy of the posted notice (or        have enough money in your account to
                                                                                 conversion?                                       a similar notice) that you can keep for your         cover the transaction, your check may
                                                                                                                                   records. This notice usually appears on your         be returned to the merchant for nonsuf-
                                                                                 Electronic check conversion is a process in
                                                                                                                                   sales receipt.                                       ficient funds (NSF), and the merchant may
                                                                                 which your check is used as a source of infor-
Suppose                                                                          mation—for the check number, your account
                                                                                                                                                                                        charge you a fee. This fee is similar to a
                                                                                                                                                                                        bounced-check fee.

you’re at a                                                                                                                        What are some of the differences

                                                                                 number, and the number that identifies your

store making                                                                                                                       between electronic check                            You have the right to receive a receipt

                                                                                 financial institution. The information is then

                                                                                 used to make a one-time electronic pay-           conversion and using my check                        when you make a purchase at a store. The
a purchase and
                                                                                                                                                                                        receipt will contain information about the

                                                                                                                                   as payment?
                           John k Drive 00000

                                                                                 ment from your account—an electronic fund
decide to pay                                               n
                           111 town, ST

                                                    Hom                                                                                                                                 transaction, including the


                                                                                 transfer. The check itself is not the method of    Your electronic transaction may be pro-
by check—                                                                                                                                                                                Date


                                                                                                                                     cessed faster than a check. Be sure you

                                                                                                                                                                                         Amount

at least, that’s                                                                                                                     have enough money in your account at the            Location
what you believe                                                                                                                     time you make a purchase.                           Name of the merchant
                                                                                 How will I know that my check                                                                         You have the right to have this same
you’re doing. But                                                                is being used for electronic check                 Your financial institution will not return any
                                                                                                                                                                                        transaction information included as part of
then the clerk runs                                                              conversion?                                         checks that are converted, even if you
                                                                                                                                                                                        the regular account statement from your
your check through a                                                                                                                 normally receive your original checks or
                                                                                 When you provide your check, you must be                                                               financial institution.
                                                                                                                                     images of those checks with your state-
machine and hands the voided check                                               given notice that information from your check                                                         You have the right to ask your financial
back to you with your receipt. Later,                                            may be used to make an electronic payment                                                              institution to investigate any electronic
                                                                                 from your account. The notice is required by       You have different consumer rights in an
when you get your bank statement,                                                                                                                                                       fund transfers from your account that you
                                                                                 the federal law that applies to electronic fund     electronic check conversion transaction
                                                                                                                                                                                        believe are unauthorized or incorrect.
that check isn’t listed with your other                                                                                              than you do when you use your check as
                                                                                 transfers, the Electronic Fund Transfer Act,
check transactions. Instead, you                                                                                                     payment. For example, in an electronic
                                                                                 and by the Federal Reserve Board’s Regula-                                                           What should I do if I have a
notice an electronic debit to the store                                          tion E.                                             check conversion, you have the right to an
                                                                                                                                     investigation by your financial institution
                                                                                                                                                                                      problem with an electronic check
for the amount of the transaction.                                               You may receive notice in different ways.                                                            conversion transaction?
                                                                                                                                     when an error occurs.
                                                                                 For example, a utility or credit card company
What happened? Did you pay by                                                                                                                                                         Always review your regular account statement
                                                                                 might put a notice in your bill stating that if
                                                                                                                                                                                      from your financial institution. You should
check or not? Why did the clerk return                                           you pay by check, your check may be used          What are my rights in electronic
                                                                                                                                                                                      immediately contact your financial institu-
the check to you? The answer is, you                                             to make an electronic fund transfer from your     check conversion transactions?
                                                                                                                                                                                      tion if you see a problem. Were you charged
just experienced electronic check                                                account.                                           You have the right to receive notice that if     the wrong amount? Were you charged twice
                                                                                 If you pay with a check at a store or other         you provide a check as payment, informa-
conversion.                                                                                                                                                                           for the same transaction? You have only 60
                                                                                 place of business, you will receive notice in       tion from the check may be used to make          days (from the date your statement was sent)
                                                                                 two different ways. First, a merchant must          an electronic payment from your account.         to tell the financial institution about a prob-
                                                                                 post a sign–typically at the register–notifying    When you provide your check, you have            lem. Depending on the circumstances, the
                                                                                 you that if you pay by check, you are agree-        the right to receive notice of any fee that      financial institution may take up to 45 days
                                                                                 ing to let the merchant make an electronic          the merchant will collect from your account      from the time you notify it to complete its
                                                                                 fund transfer from your account. Second, you        electronically. For example, if you do not       investigation.

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