A consensus appears to be emerging over the benefits of fully electronic checks. Fully electronic checks are check payments that start out as electronic instructions instead of paper documents. They get processed through interbank networks the same as RDC items and checks imaged at the bank of first deposit, which now account for nearly all deposited checks.
These items – known by several acronyms, including EPOs (for electronic payment orders) and ECIs (for electronically created items) – have been clearing through the banking system for years, indistinguishable from other check payments, experts note. Yet, they are not explicitly addressed by any laws or regulations. The Federal Reserve Board had been considering amendments to Regulation CC (which implements check laws) that could address these concerns, but those now appear to be on the back burner.
A new poll suggests broad industry support for fully electronic checks, however. Nearly 8 in 10 responding to the latest poll by RemoteDepositCapture.com see a place for electronic checks in banking and cash management. Just 17% do not.
RemoteDepositCapture.com regularly polls visitors on their views about issues related to RDC and payments. The polls are part of a feature called Poll Central. As of January 17 there were 294 responses to the current Poll Central query: Should the industry allow fully electronic checks. “That 79% said yes shows overwhelming support for electronic checks,” said John Leekley, Founder and CEO of RemoteDepositCapture.com. “Despite polling an industry with an inherent bias toward keeping the paper check around, the vast majority voted in favor of fully electronic checks. It is especially telling that at a time when many in the industry are pursuing faster payments with new electronic networks, checks remain resilient.”
Visit Poll Central and vote:
- The tally has been reset but you can still vote in the electronic check poll: “Should the industry allow fully electronic checks?”
- Here’s your last chance to vote in the next poll: “For Mobile Deposit users, what is the value of Mobile Deposit to you, per transaction?" The results of this poll will be the focus of next month’s Poll Central story.