Major changes to how banks clear checks

[EscortBiz]

http://moneycentral.msn.com/content/...ing/P90617.asp

[EviLGuY]

Thats kind of interesting.. checks are pretty much outdated anyways.

[fr8]

Damn good thing im already using plastic for everything.

[James White]

Good to see banks getting with technology

[crockett]

Originally posted by EviLGuY
Thats kind of interesting.. checks are pretty much outdated anyways.

kinda sucks because the float can be helpful sometimes.. but I have always wondered why in the hell it takes so long to process a check. I wonder if this will make using checks more popular online. Maybe it wil help us in the long run, as a way to bypass visa if a check can clear in less than 24 hours..

worst case if it dosen't clear, you only gave away a 24 hour trial..

[WiredGuy]

I like the idea of most aspects, I'm not sure how well fraud control will work out without the original check anymore though. It is time that technology caught up to the banking sector. As the article said, billions should be saved in processing fees, but fat chance banks will pass those savings on to customers.

WG

[EscortBiz]

Originally posted by WiredGuy
I like the idea of most aspects, I'm not sure how well fraud control will work out without the original check anymore though. It is time that technology caught up to the banking sector. As the article said, billions should be saved in processing fees, but fat chance banks will pass those savings on to customers.

WG

yeah they better have some solid security in place

[JustinF]

Originally posted by EviLGuY
Thats kind of interesting.. checks are pretty much outdated anyways.

Not according to that article: "banks process about $200 billion in checks every business day".

[BRISK]

I like the idea of checks clearing faster.

[Illicit]

I write a check maybe once every 6 months... its plastic and online banking for me

[Mr. Mike]

I was surprised to know that it takes this long to clear a check. I deposit a check by 4pm, it shows up the next day. Been like that for years.

[extreme]

checks suck.

[Stamen]

Sounds like a good thing to me.

[EscortBiz]

banks are going to make a fortune in boucned check fees, here is why:

millions of people write checks knowing that it will take 2-3 days to hit their account and then they plan on the next day or so to put the money in to cover it.

They will be in shock when all of a sudden same day boom they get hit with a fee for a bounced check

[Oracle Porn]

Am I the only one who is being trusted by their bank and add the funds imidiatly to my account?

If I have $10,000 on my account and deposit $1,000 in checks... I immideatly see $11,000 balance....

[KRL]

Does that also mean when we deposit 6 figure and up checks they don't get to play the bank's scammy float game where they put a 7 business day hold until funds clear?

Let's see if that stops too. And if not what bs excuse they'll use to play with your funds for 7 days.

[EscortBiz]

Originally posted by KRL
Does that also mean when we deposit 6 figure and up checks they don't get to play the bank's scammy float game where they put a 7 business day hold until funds clear?

Let's see if that stops too. And if not what bs excuse they'll use to play with your funds for 7 days.

wondering the same

if a bank needs an excuse all they say is "well its our policy blah blah blah..."

[EscortBiz]

Originally posted by Oracle Porn
Am I the only one who is being trusted by their bank and add the funds imidiatly to my account?

If I have $10,000 on my account and deposit $1,000 in checks... I immideatly see $11,000 balance....

and its avilable right away?

im thankful that I really dont care in these days, but i remember the days when every day made a difference

[SpeakEasy]

Good article Escort Biz .very interresting to say the least.

[zzgundamnzz]

In a nutshell, the law frees banks from having to handle paper and instead allows them to process electronic images of your original checks


This is nothing really new... back when I worked for EDS we processed all those checks the same way. Only difference was that they got copied on to micro-film instead of on hard drives.

The big difference is the speed though. It took forever to process everything into the micro film but doing digital images should speed everything up.

[EscortBiz]

Originally posted by SpeakEasy
Good article Escort Biz .very interresting to say the least.

thnx

[woj]

I write maybe one check a month, all electronic here... I guess it would be cool to get sponsor checks cleared sooner, but doesn't really matter though...

[BRISK]

Originally posted by Oracle Porn
Am I the only one who is being trusted by their bank and add the funds imidiatly to my account?

If I have $10,000 on my account and deposit $1,000 in checks... I immideatly see $11,000 balance....

I have that too, but only up to $1000. If I deposit a check for $10,000 they will clear $1000 immediately but they will hold the other $9000 until the check clears.

[Shoplifter]

It's already like this in Canada and other places. The checks clear overnight.

[Easton]

i didn't think anyone used checks anymore, then i moved to the US... i can write the gas pump attendant a check here, it's crazy

[EscortBiz]

Originally posted by Easton
i didn't think anyone used checks anymore, then i moved to the US... i can write the gas pump attendant a check here, it's crazy

reminds me of a funny story

This guy who just moved from russia to america was at my house to do an installation of a phone system.

He told me before he started that cash only, it was just 250 bucks why not.

Then he told me that a week after he arrived to america he installed an phone system, remote garage door system, alarm system for someone and he charged them 2000 dollars.

when it came to pay the guy said all he has is a check for 6000 so the customer offers him take the 6K check and give me 3500 in cash as change and keep the 500 bucks for the trouble.

You can figure out the rest the check bounced

[Oracle Porn]

Originally posted by EscortBiz
and its avilable right away?

im thankful that I really dont care in these days, but i remember the days when every day made a difference

been with this bank for 2 years, and after 1 month of use they clear checks immidiatly....

[Oracle Porn]

Originally posted by BRISK
I have that too, but only up to $1000. If I deposit a check for $10,000 they will clear $1000 immediately but they will hold the other $9000 until the check clears.

nop, no limit.

[BRISK]

Originally posted by Oracle Porn
nop, no limit.

Try depositing a check for $1,000,000 and see if they'll clear it immediately.

[Oracle Porn]

Originally posted by BRISK
Try depositing a check for $1,000,000 and see if they'll clear it immediately.

sure, send me one and I'll tell you how it goes, you know the address right?

[speakthetruth]

Originally posted by KRL
Does that also mean when we deposit 6 figure and up checks they don't get to play the bank's scammy float game where they put a 7 business day hold until funds clear?

Let's see if that stops too. And if not what bs excuse they'll use to play with your funds for 7 days.

If they are placing a hold on your 6 figure checks you do not have enough $ in the bank. Banking is about relationships, and how much $ you have in the bank. If my bank told me they were placing a hold on any check I would close my account right then and there.

[KRL]

Originally posted by speakthetruth
If they are placing a hold on your 6 figure checks you do not have enough $ in the bank. Banking is about relationships, and how much $ you have in the bank. If my bank told me they were placing a hold on any check I would close my account right then and there.

I've only been with one bank that credited any size check right away, which was an LA bank specializing in the entertainment industry so they got lots of large checks. We usually kept about $250,000 to $500,000 in that checking account. Most banks though do have a policy of 5 to 7 day hold on large checks unless its certified or a cashiers check.

[gage]

with direct deposit.. wire transfer, etc... i haven't written a check for ages.. -g

[Trixxxia]

Don't know about the American banking system but haven't seen it at the bank I worked - the only time checks were held on big amounts were with questionable accounts or cheques drawn on US banks cuz they can return the cheque NSF up to 30 days later whereas Canadian banks have a limit of 3 business days.

[psyko514]

Originally posted by TopBucksTrixxxia
Don't know about the American banking system but haven't seen it at the bank I worked - the only time checks were held on big amounts were with questionable accounts or cheques drawn on US banks cuz they can return the cheque NSF up to 30 days later whereas Canadian banks have a limit of 3 business days.

mind if i ask what bank you worked at?

[Trixxxia]

CIBC - Main branch

Your GF works at Visa, right?

[Snake Doctor]

Originally posted by KRL
I've only been with one bank that credited any size check right away, which was an LA bank specializing in the entertainment industry so they got lots of large checks. We usually kept about $250,000 to $500,000 in that checking account. Most banks though do have a policy of 5 to 7 day hold on large checks unless its certified or a cashiers check.

I've noticed my bank holds funds whenever I have a substantial increase in business.
If I deposit roughly the same amount of money every week, regardless of how much it is, they credit it right away.

If I have a really good week, or don't make a deposit one week and deposit double the amount the next week, there's a hold on a portion of the funds.

I think it has something to do with the amount of the deposit VS your average daily balance.

[psyko514]

Originally posted by TopBucksTrixxxia
CIBC - Main branch

Your GF works at Visa, right?

both of us do, as a matter of fact. i work for TD and she works for CIBC, also at the main branch... you two probably crossed paths a few times!

i'm assuming you used to post here as Trixxxia? i just now put two and two together. congrats on the new position

[Trixxxia]

Originally posted by psyko514
both of us do, as a matter of fact. i work for TD and she works for CIBC, also at the main branch... you two probably crossed paths a few times!

i'm assuming you used to post here as Trixxxia? i just now put two and two together. congrats on the new position

Actually I think I stopped working at the branch when she started - I left that branch in 93-94 and went to the one on St-Jacques for a year or two, then went to Place Versailles.

Yes, that is me & thanks for the
!

[C_U_Next_Tuesday]

Originally posted by EscortBiz
banks are going to make a fortune in boucned check fees, here is why:

millions of people write checks knowing that it will take 2-3 days to hit their account and then they plan on the next day or so to put the money in to cover it.

They will be in shock when all of a sudden same day boom they get hit with a fee for a bounced check

bingo, they know this and are probably salivating on the chance to make more money off of their clients.

[aiken]

banks are going to make a fortune in boucned check fees, here is why:

Perhaps, but decent banks offer you a way around that. I bank with Citibank, and automatically get a credit line for about 3x my average balance. I can write checks based on funds that haven't arrived yet, and as long as I make a deposit to cover them within a few days, there's no interest.

Now, the formerly-cool, now-crappy credit union I used to bank with just moved to 5-day holds for any ATM deposit, regardless of amount, balance, or banking history. *They* were definitely looking for NSF fees.

Cheers
-b

[wdsguy]

interesting read

[Paul Markham]

Originally posted by BRISK
I like the idea of checks clearing faster.

They can take 5 weeks to clear here, the banks keep telling us they have to go back to the issueing bank to checked for the signature and funds, etc.

Even checks from Hustler and PRO, who both have more money then the banks and the check is signed by a computer.