E-Sign Act: Switching from Paper to eStatements

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Question:

We would like to start a campaign to encourage our Merchant Service customers to switch from paper statements to e-statements. First Data does not require anything other than an email from us once we have received the merchant's verbal approval. Does switching our merchants from paper to e-statements require we comply with the E-Sign Act?

Answer:

Answer by Richard Insley: The ESIGN consent provisions only apply to e-delivery to consumers.

Answer:

Answer by Jim Bedsole: You may want to look at your contracts with the merchants. Does your contract stipulate that you will provide statements in writing? If so, does the contract contain any language as to whether electronic delivery can substitute for writing? If not, you may want to consider amending your contract with the merchants to make that stipulation. I'd recommend you consult the bank's legal counsel.

First published on BankersOnline.com 3/11/13