Acceptable Use Policy

Remotely created checks are a recognized, lawful form of payment instrument under the Uniform Commercial Code (UCC Article 3, Article 4) and Regulation CC (12 CFR Part 229). Generating a check based on a customer's actual authorization — given by phone, fax, or web, and documented as required by law — is a normal, legal business practice used across many industries, including debt collection, insurance premium billing, membership dues, and other recurring or phone-based payment relationships.

Drafsense is built specifically to support this lawful use case: every draft is tied to a documented authorization record, encrypted storage, and an audit trail designed to protect both you and your customers. Businesses using Drafsense as intended — with real, obtained authorization for every check — have nothing to be concerned about under this policy. The obligations below exist to protect legitimate users from the minority who would misuse the Service, not to discourage ordinary, lawful use.

Drafsense may be used solely to generate remotely created checks (RCCs) for legitimate business purposes, and only where the account holder whose bank account is referenced has actually authorized the specific payment being drafted, by phone, fax, web form, or other method permitted under applicable law.

By creating an account, you represent and warrant that:

You may not use Drafsense to:

Drafsense generates check drafts only. Drafsense does not hold, transfer, process, or have custody of funds at any point. Responsibility for depositing, clearing, and honoring any check generated through Drafsense rests with you and your financial institution, the same as any check you create by hand.

Drafsense reserves the right to monitor account activity for signs of fraud or misuse, and may suspend or terminate any account, without notice, if Drafsense reasonably believes this policy has been violated. Drafsense reserves the right to report suspected fraudulent or unlawful activity to law enforcement, financial institutions, or other relevant authorities, and to cooperate with any resulting investigation.

Creating a check drawn on an account without the account holder's actual authorization is not a policy violation alone — it may constitute a criminal offense under federal and state law, independent of any action Drafsense takes. Depending on the circumstances, this may include:

Separately, under UCC Article 3 and Regulation CC, the party who creates an unauthorized remotely created check bears warranty liability to the paying bank and may be independently liable to the account holder and the financial institutions involved, regardless of any criminal proceeding.

Financial institutions are independently required to file Suspicious Activity Reports (SARs) with FinCEN when they identify potentially fraudulent check activity. Drafsense's audit trail, encrypted records, and authorization documentation may be provided to law enforcement, financial institutions, or regulators in connection with any investigation into suspected misuse of the Service.

You agree to indemnify and hold harmless Drafsense, its officers, employees, and affiliates from any claim, loss, liability, or expense (including reasonable attorneys' fees) arising from your use of the Service in violation of this policy, including claims brought by a payer, a financial institution, or a regulatory authority.

If you become aware of any unauthorized use of your account, or any check created through Drafsense that was not properly authorized, you must notify Drafsense promptly at support@drafsense.com.