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LEGAL INFORMATION:
Accepting checks by fax, phone or internet was established by the Federal Reserve Bank and is regulated by the Federal Trade Commission.
Telephone checks and checks by fax and Internet are established as a legal method of payment under the Uniform Commercial Code, Title 1, Section 1-202(39) and in Sections 3-104 and 3-401 and 3-403: Code of Regulations, Title 12, Chapter 11, part 210 and Regulation J, Federal Reserve Bank, Part 2, Sections 4a-201 to 4a-212.
Also see Romani vs Harris 255 MD.389.
New FTC Regulation: As of January 1, 1996 regulation 16CFR Part 310 was placed into law. This requires that those who accept checks over the phone either record verbal authorizations or a notice be sent to anyone who purchases with a check by phone.
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