When Is Yo t a Check?Doe allow me to u more than on John Doe 1234 111 Oak Drive Hometown, ST 00000 PAY TO THE ORDER OF $ DOLLARS Hometown Bank ti MEMO 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. RS you’re at a What are some of the differences DOLLA 1234 number, and the number that identifies your $ store making between electronic check You have the right to receive a receipt 0000 financial institution. The information is then 1234 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 7890 receipt will contain information about the 89 Bank as payment? 5667 John k Drive 00000 ment from your account—an electronic fund decide to pay n etow 111 town, ST 1234 Hom transaction, including the Doe MEMO Oa Home transfer. The check itself is not the method of Your electronic transaction may be pro- by check— Date 00 00 34 12 90 payment. 78 89 67 cessed faster than a check. Be sure you 56 Amount 34 12 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 ment. 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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