Is there any reason that a consumer telephone authorized draft printed in paper form at our bank depositor's site is not eligible for RDC image processing?  I can't think of a single reason why, but it just feels weird to me. :o
Part II of my question is whether this item would be eligible for ACH conversion in the RDC application. 

There was a good deal of concern stirred up about demand drafts, or remotely created checks (RCCs) earlier this year (see DT Article), especially after the Comptroller of the Currency ordered Wachovia to pay millions in connection with a telemarketer customer that used RCCs to fraudulently withdraw millions from unsuspecting consumers.  Although it appears that this particular incident could have been mitigated to some degree, RCCs still place Financial Institutions (FIs) in a position of greater risk.  In fact, the risk was deemed so great that my FI overwhelmingly agreed to not accept RCCs from any client, through any channel (over-the-counter, RDC, etc.).  With ACH readily available and reasonably priced, customers that need to generate an honest payment on behalf of their client have a much better option.