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The advent of billing technology has allowed most companies to start taking payments from their
customers beyond the old standby of postal mail. Bills can now commonly be paid by submitting check or
card information over the phone, online, or even setting up an agreement to have the bill automatically
drafted from an account each month for the amount owed. While this has allowed for a great amount of
convenience for customers, many consumers are wary that such methods are prone to fraud in new
ways. Some worry that there is no guarantee that the customer service agent taking payment
information isn't just writing it down for their own use. And unlike a mailed payment, if an electronic
payment gets lost, there's no check to cancel and stop worrying about.
Fortunately, most banks and card companies have enacted policies and procedures to deal with
potential fraud. Nowadays, canceling or reversing an electronic payment made with your check
information is just as easy as disputing a charge appearing on your credit card. In most cases, the bank
will automatically reverse the payment when disputed. Just like balancing your regular payments, it's
your responsibility to check your bank statements and make sure electronic payments are submitted and
withdrawn correctly from your account.
The Federal Trade Commission has also passed two acts that include clauses aimed at fighting against
possible e-payment frauds. The Fair Credit Billing Act (FCBA) and Electronic Fund Transfer Act (EFTA)
enacted procedures to resolve discrepancies on credit and bank account statements. While these
procedures embody credit and debt card transactions, it is important to note that this act does include
Electronic Funds Transfer (EFT) payments from checking accounts.
Further EFTA guidelines state that any unauthorized withdrawal from your bank account must be
reported to your bank within 60 days, after knowing or receiving the statement showing that a problem
exists with your account. Notice in writing (recommend by return receipt) should follow to ensure proper
documenting of the existing problem. Your bank has the right to research and address the problem
within 10 business days, inform you of their findings within 3 business days and correct the error within
1 business day.
The entire EFTA can be found at http://www.ftc.gov.
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