From: frissell@panix.com (Duncan Frissell)
Date: Thu, 28 Jul 94 06:03:13 PDT
To: Jim Hart <hart@chaos.bsu.edu>
Subject: Re: Voice/Fax Checks
Message-ID: <199407281302.AA03998@panix.com>
MIME-Version: 1.0
Content-Type: text/plain


At 04:43 AM 7/25/94 -0500, Jim Hart wrote:

>Isn't this kind of like writing them a blank check?  If I tell
>them to make the check out for $20 and they make it out for
>$100, how do I repudiate that?  Not only that, how do I prevent
>them from writing and cashing more checks by increasing the
>sequence number?

Nothing.  Just like I can obtain your check info (by getting you to write me
a check) and forging a physical check using DTP technology (Forbes cover
story of several years ago).  You can disavow the check though and demand a
credit from your bank.  

If you don't complain, the transfer stands.  If you do, you get your money
back. 

I don't think they ever passed the Uniform Commercial Code proposal that
would have made checks just like electronic payments where you are liable
for $50 if you don't make a timely report of the problem.  Traditionally,
you *never* had to challange a check and you could get all of your money
back if the bank paid a check on a "forged drawer's signature."

DCF