prolly a retarded question
 

but we still let TSB post - - so I'll ask anyway.

why don't Banks have more of a problem with refunded checks??

we had less than half a percent of our cc charges - refunded last month

but we had like 25% of our checks return/refunded.

Don't banks have costs associated with processing and especially dealing with returning checks?? when are they gonna get around to sticking their hand out?

Kimmy Kim answered this a while back, she does know this side of the industry inside out, it is due to (I think) the check is more of an IOU so if when ccbill or whoever present it at the bank there are fuck all funds you do not get your money.

with a credit card, we can verify and authorize the funds right away...


with online checks, after the fraud scrub, we verify the routing number and send it through to the bank...If the bank account does not have any funds in it, or the account number is incorrect, then it gets returned, in most cases within 3 business days.

There has always been a high return rate on checks, but if you use them as a compliment to your credit card option, its worthwhile to have them. They normally rebill longer than credit cards do

Just remember a retarded question is a question never asked

because people realize they can "float" virtual checks... and debits are manually done by the banks.

If you can beat the clock, sometimes, the really really SLOW clock... ya can get in there before they cash it, and stop payment...

Er, atleast thats what I think? shrugs.

there are no retarded questions...only retarded people.......

I could swear there are BOTH... :Graucho

hey now... even retarded people have feelings...

I know that's the way the system works, but with the ACH system as efficient as it is today - and with, for example, debit card transactions doing auto-deducts from checking immediately, why is this system still so inefficient?

My guess would be due to potential fraud concerns. I mean say someone double or triple charges some credit cards....that money can always be traced and charged back.

Now say same said individual does it with checks instead getting instant funds from it...he could then run off with that money and the person stuck with the bill will be the consumer...not the bank. And let's say even if the bank does manage to get the money back....that's $50, $60, $70+ dollars out of the customer's account they won't have access to until the bank finishes the investigation...what if they needed that money for food or for rent?

Until there's some way of strict verification, check debits online will have to be manual. With the debit industry today in the real world, you're protected by you're PIN....well who in their right mind would put their PIN on any website as verification =)