Faxed or "Virtual Checks"
100% Legal Per The Federal Reserve

Checks created by any other than the checking account holder are called "paper drafts". Telephone checks (pre-authorized paper bank drafts) are also completely legal. Check demand drafts, or "drafting" funds from a second party's checking account, have been a method of payment for more than 8 years, usually in collections.

The primary requirement is that the checking account holder (the customer) must give a verbal or written pre-authorization, such as faxing their check with his or her signature, or digitally uploading it with a statement of authorization. Once the pre-authorization is received, the signature on the paper-draft isn't a requirement, 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.  Also see Romani v. Harris, 255 Md. 389.

If your bank has any questions, refer to the Uniform Commercial Codes referenced above.

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