Abstract: One method of the present invention includes presenting a prepared bank check, in relation to a point-of-sale transaction, to the merchant. The merchant, using a point-of-sale terminal, scans the prepared bank check to retrieve consumer bank account information and using the terminal may enter transaction information. The information is then transmitted to a third party's central database for authorization or rejection of the check transaction. The third party may thereafter present the information to an originating depository financial institution for electronic settlement. The merchant further retains the paper check and forwards it to the third party to secure the electronic settlement. If the consumer cancels the electronic settlement in bad faith, the third party may thereafter present the paper check as a negotiable instrument to the originating depository financial institution.