Another Reason We Love our Check
In the last few issues (97:08:01 and 97:08:02) we provided an investigative look at ECP, and the reasons people have problems with it. One of the sticky points is the fact that merchants don't have the physical check and the consumer has 60 days to dispute the debit.
While it does not deal directly with ECP, a recent armored car robbery illustrates the nightmares a lack of a physical check can cause.
Among the loot in the Jacksonville, FL robbery were checks from a Wal-Mart store. Under Florida's Uniform Commercial Code, sellers of goods can recover the amount of a lost or stolen check. In an effort to recover the losses, Wal-Mart used EFT to debit the customers' account.
But complaints to the Florida State Comptroller indicate that consumers may have been debited even though they did not purchase by check at the store or they may have been charged twice because their check already cleared.
So, what is Wal-Mart to do? Customers have 60 days after discovering the transaction to go to their financial institution and request the transaction be reversed. Wal-mart does not have the check so they have no way to prove that a purchase was made and not paid for. This is the same problem ECP raises. If a merchant doesn't have a check, and the transaction is disputed, what proof do they have to regain their money?
