Remotely-Created Consumer Item Law and Legal Definition

Pursuant to U.C.C. § 3-103, remotely-created consumer item means an item drawn on a consumer account that is not created by the payor bank. Remotely-created consumer item does not bear a handwritten signature purporting to be the signature of the drawer.

A bank that transfers or presents a remotely created check would warrant that the check is authorized by the person on whose account the check is drawn. Generally, in place of signature, a remotely created check bears a statement that the customer authorized the check or bears the customer's printed or typed name. Remotely created checks can be useful payment devices. A debtor authorizing a credit card company to create a remotely created check by telephone enables the debtor to pay the credit card bill in a timely manner and avoid late charges. However, remotely created checks are open to fraud because they do not bear a signature or other readily verifiable indication that payment has been authorized.