HB 272 Summary

• Expands Mississippi's bad check law to include electronically converted checks (checks converted to electronic ACH transactions) and electronic commercial debits initiated through the ACH Network for commercial purposes.

• Defines "electronically converted check" as a single entry electronic debit initiated with a physical check and cleared through ACH as an Accounts Receivable Entry, Point of Purchase Entry, or Back Office Conversion Entry.

• Defines "electronic commercial debit" as an ACH debit for commercial purposes where the payor signed an agreement providing their bank account information and the payee delivered goods or services in reliance on that agreement.

• Requires dishonor notices for electronic transactions to follow NACHA Operating Rules and maintain the existing $40 service charge and 15-day payment deadline that applies to traditional bad checks.

• Applies existing criminal penalties for bad checks to these electronic payment methods, ranging from misdemeanor charges for amounts under $100 to felony charges for amounts of $100 or more or third and subsequent offenses.

• Effective July 1, 2015.