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Check demand drafts, or "drafting" funds from a second party's checking account, have been a method of payment for more than 8 years. Fax, E-Mail, and Telephone checks (pre-authorized paper bank drafts) are completely legal. The primary requirement is that the checking account holder (your customer) must give you verbal or written pre-authorization, such as faxing you their check. Once you've received pre-authorization, you really don't even need a signature on the paper-draft, just as you don't need a signature on a phoned in credit card order. Paper drafts are explicitly established as a legal method for payment as provided in: Uniform Commercial Code, Title 1, Section 1-201 [39] and Title 3, Sections 3-104, 3-403, 2-403 Code of Federal Regulations, Title 12 Chapter II, Part 210 Regulation J, Federal Reserve Bank, Part 2, Sections 4a-201 to 4a-212. The Federal Trade Commission in late 1995 proposed rules that became law in January 1996 (Regulation 16CFR Part 310) that requires businesses who take checks over the phone to have a "verification" procedure in place.

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