A set of rules governing the exchange of a new type of all-digital echeck will be released Electronic Check Clearing House Organization (ECCHO) The rules would permit banks to offer digital checks that work on mobile phones.   The rules would apply only to transactions between the 2,268 financial institutions that are ECCHO members.

An electronic payment order, or EPO used special software installed on a smart phone.  The software lets consumers create checks on the phone, fill in fields on a check image appearing on his screen and sign the instrument with a stylus. The software transmits the image over the wireless network to a the recipiant, who would deposit it electronically. The check image would clear and settle in the same way as any other check images.

ECCHO’s rules outline legal definitions of the EPO and describe how legal liabilities would be split among the parties to the transaction. The rules will help improve operational efficiencies and safeguard participants.

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