Bank Drafts

BACK TO MAIN FAQ PAGE

Are drafts legal?

Bank drafts are 100% legal. They look exactly like checks, except for the signature line. You don't sign bank drafts. ChecksNet imprints Pre-authorized Draft on the signature line. All you need is permission from a person who signs on that account. Permission can be verbal or written. Best way is someone faxing their check to you. You can also record permission on your answering machine or voicemail. This complies with FTC Regulation 16 CFR 310.

You deposit bank drafts just like checks. Put other people's money in your bank NOW! No waiting, no merchant fees, no transaction fees or additional fees of any kind. The Help Menu of ChecksNet includes more information and tips on bank drafts, which have been a legally accepted form of payment for almost 90 years. We think bank drafts are the most powerful payment tool ever created. We use it every day in our offices to sell our products and services. You can start accepting draft payments the minute you have ChecksNet.

History. Insurance companies started using bank drafts in the 1920's. Today you can pay your utility or credit card bill simply by giving your account information over the phone. Bank drafts are a normal way of life today. This is one reason why the Federal Reserve System recommends bank drafts to service the 70 Million plus Americans who don't have credit cards. Insurance agents still do bank drafts today. Allstate, Farmers and many independent insurance agents all across America have been using ChecksNet Software for years.

We use ChecksNet to sell ChecksNet and CheckToner. Credit cards are great for us as consumers but as a merchant, they can be a nightmare of fees and paperwork. Today, 93% of our ChecksNet Software clients and 61% of our CheckToner customers pay us using ChecksNet.

Mailing a signed check is MUCH more dangerous than a bank draft. News media routinely report checks being stolen from US mailboxes. Criminals have stolen entire mailboxes from the front of post offices. Criminals easily alter checks and copy your signature to commit other crimes.

More advantages of drafts. Depositing bank drafts is better than ACH (electronic transfers). There are merchant fees for doing every ACH, there are payment delays and an ACH payment can bounce for dozens of reasons. ChecksNet can be used to collect on bad checks without paying ANY collection fees. Complete details and many tips are included with ChecksNet Software.