Please understand the language of check acceptance before you begin to deposit drafts generated by CheckWriter™. With this software you are accepting the customer’s check information, and creating a "DRAFT" of their check for deposit. 

Because no signature is required once you obtain authorization by phone, fax or over the Internet, you can create a draft with "No Signature Required."

No bank will accept a "CHECK" that does not have a signature, or without special magnetic ink in the MICR code line. However, banks will process a "DRAFT" this way. Drafts differ from checks because although they are authorized by the accountholder, they are generated by a third party.

The Uniform Commercial Code permits the process of drafting by defining signature in the following regulation: Uniform Commercial Code, Title 1, Section 1-201 (39). 

This regulation only makes check drafting possible,  not "required." Your bank may deny your items for deposit if they have reason to be suspicious. Suspicious items are covered in Regulation CC 229.13, Exceptions.

Check drafting requires no special license, only the permission of the account holder. 

CheckWriter™ will help telemarketers comply with the FTC Regulations 16 CFR 310 in regard to proper record keeping.  This regulation only applies to outbound telemarketers, and does not cover inbound calls or transactions between customers where and relationship already exists.

These drafts comply with all known U.S. standards and should only be printed on security bond check paper: Federal Reserve Board of Governors Regulation 'CC.' 

If you approach your branch, be sure you word your questions carefully. Most branch managers and tellers do not know much about this technology, and may even tell you they do not accept such items. 

Asking questions of your bank where you raise doubt as to the validity of the items may cause the bank to to hold items under Regulation CC 229.13, Exceptions.

Specifically: Regulation CC 229.13 (e) Reasonable cause to doubt collectibility--(1) In general. Sections 229.10(c) and 229.12 do not apply to a check deposited in an account at a depositary bank if the depositary bank has reasonable cause to believe that the check is uncollectible from the paying bank.

Reasonable cause to believe a check is uncollectible requires the existence of facts that would cause a well-grounded belief in the mind of a reasonable person.

The new "Substitute Check Law" known as Check 21, has greatly increased the use of check drafting.  Here is more information.

We recommend you try a test draft first if you are unsure of your bank's handling of these items. Print a copy of one of your own checks from CheckWriter™, and deposit it into your own account. Endorse the draft and fill out a deposit slip as you normally do.  Bring it to the teller, or deposit it into the ATM or night drop.  It will clear in just a couple days, just like a regular check. 

Drafts must be printed properly to be accepted.  Improperly printed drafts will be returned to you without question.  Do not deposit any draft unless you are positive that it is printed properly. If you have any questions about the validity of  your item before deposit, please contact technical support by calling the number on the front of your CD, or email http://yourfavorite.com/help .

See the symbology section of this manual if you have any other questions about coding the MICR line of your drafts.

Before using CheckWriter™ for the first time be sure to Register CheckWriter™ and read, then agree to the License Agreement.

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CheckWriter™ Enterprise Edition
CheckWriter™ Network Edition
CheckWriter™ Single User Version
CheckWriter™ Basic

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