Electronic Banking

Some time ago I was paying for something by check at Office Depot.  The cashier began to convert my paper check into an electronic check.  I stopped her.  I then paid by credit card.  The cashier asked me why.  So, I asked her a question.  If there is a mistake in the electronic check process, do you know what the account owner’s legal rights and liabilities are?

She just stared at me.  The next two customers in line were listening to the conversation, and neither of them said anything — they just put their checkbooks up and pulled out credit cards.

USAToday.com has an article today on small and mid-sized businesses being hit by electronic banking fraud.   According to this article more than half of businesses reported some kind of fraud in the last year, 58% of those involved online banking.  In 87% of those cases the banks were unable to fully recover the lost funds.  More than a quarter said they were not reimbursed at all by their banks.  More than half said they were not reimbursed fully by their banks.

So, tell me, when you use a debit card, make a deposit electronically, or allow a paper check to be converted into an electronic check; do you know what your rights and liabilities are in the event of either error or fraud?  If not, why are you doing it?


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