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ECT News Community   »   E-Commerce Times Talkback   »   Re: New Rule Book for Web Shopping with Electronic Checks



Re: New Rule Book for Web Shopping with Electronic Checks
Posted by: ECT News 2001-03-16 15:01:16

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With the goal of encouraging Web merchants and
shoppers to use personal checks for e-tail sales, the
Electronic Payments Association instituted new rules Friday
for how electronic checks are processed.
The new rules will govern how Internet merchants accept
payments by check sent through the association's
Automated Clearing House network (ACH), which processes approximately
32 million electronic checks a year.


"As e-commerce matures, consumers and businesses will expect
to have payment choices, just as they do in the bricks
and mortar world," said Elliott C. McEntee, president
and chief executive officer of the not-for-profit
association.


Re: New Rule Book for Web Shopping with Electronic Checks
Posted by: chris in atlant 2001-03-16 15:06:39 In reply to: ECT News
The big advantage of credit card over cash-based transaction is "mistake protection."

If I buy a $10.00 item, but somehow the merchant misses the decimal point, my account is going to be hit with a $1000 check. It takes weeks for the banking system to rectify such errors. In the meantime, I am out the cash taken by mistake.

Should the same occur with a credit card, I lose no cash, but only submit a dispute.

When the banking industry will accept protections for consumers similar to those in credit cards, then the use of e-checks and debit cards online might rise significantly. However, I expect pigs to fly through frozen hell first, given banking's long-standing aversion to customer service.

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