[tdy721]

This system you are calling ACH is also just called an "eCheck". If you write a check at say WalMart, they just scan it at the register and do an "ACH". Like others here have said: "KYC" know your customer rules make it hard to do fraud this way without getting caught.

People do abuse this all the time, look for the bad check writer program in your county. It's not switching over to ACH, that's how it has worked all along. I recommend Catch Me if you Can by Frank Abagnale.

[wiredfool]

There are a couple of ways this transaction can go, with different rules. There is an ACH truncation on checks, with follows ACH rules of reversability. In that case, they're only sending the MICR line of the check, not capturing an image.

There's also Check21, which is much more likely to be what they're doing. That takes a front/back image, and is essentially electronic settlement of checks, using check settling rules. For true fun, the electronic image can later be printed out on a larger piece of paper with it's own MICR, and now it's an IRD (image replacement document) and it can go back into the legacy paper settlement system.

[ejstronge]

I don't believe eChecks and ACH are the same - eChecks are associated with a check number but this isn't the case for the many ACH transactions I have seen. Additionally, every eCheck I've encountered also had a required consent question ("Do you authorize us to...") whereas this isn't the case for ACH transactions.