Committee outlines steps to remove e-check barriers

A Federal Reserve System committee Sept. 7 outlined a series of cooperative steps the Federal Reserve and the private sector can take to remove barriers to the development of electronic check presentment in the United States.

The steps were identified at a workshop conducted by the Payments System Development Committee on June 29 at the Federal Reserve Bank of Boston.

According to a release from the Fed, the recommended actions include:

Further consideration of legal changes that would reduce legal barriers to the electronic collection or return of checks, while protecting the rights of consumers or others who wish to receive paper checks.

Further efforts to develop and implement technical standards for exchanging electronic or paper substitutes for checks.

Follow-up discussions between the Federal Reserve and the banking industry on the business case for electronic check presentment.

Discussions of new operational concepts involving electronic check presentment and check imaging and of potential ways to test the concepts.

Preparation of educational materials to inform depository institutions and the public about electronic check presentment.