Check Writers

Theres a new law that is going into effect on 10/28. From what i'm understanding is that when you write a check, it is immediately is cleared electronically. http://www.consumersunion.org/finance/ckclear1002.htm
Lord knows, i'm the worst at balancing my checkbook, have been known to float a check or two...not any more. Its actually pretty scary when you think about it.
Jen

What about us with more kids than income? LOL I have known for a while that I can write a check at the grocery on Wednesday after 5 and it will not clear until the following Tuesday. What will this do to ME? LOL

Hate to say it, but it will bounce : (
The one thing that REALLY gets me is that they havent perfected the system yet and people run the risk of both checks clearing, the paper one you wrote and the electronic one that is generated. Now how FAIR is that.
The article goes on to say that the ONLY ones that benefit are the banks......with all the bounced checks they are counting on.

My SIL knows my system and warned me about this. I would die if both cleared. I don't know how they can charge you though if it goes through twice. If this actually happens, why not just use credit or debit! Sigh!

Man, one time this double-clearing happening on a big check (or even a small one if you're cutting it close) could be disasterous!

I use to float checks all the time and now I'll going to have to wait until the money is really in the account. The worst part of this is that deposits are not always immediately credited to your account. Many banks send off all money recieved to a money market so they can make a few bucks on it. They have up to 5 days to credit your account.

i havent balanced my checkbook in yrs
its like life-a guessing game! ;0

I must have money... there are still checks in my checkbook, LOL.

Yeah, it will be a bummer. I probably only write 2-3 checks a month anymore, and those are for bills I cannot pay electronically. I either pay bills with http://checkfree.com (free) or use my debit card for things like groceries.

Darius, I absolutely love "check free". I have never had a problem with it and I would highly recommend it to anyone. You can sit down one day and pay all your bills at one time on the days you want them paid and be done with it until next month!!! I've been with them for many years now. I won't own a debit card, but do still write out many checks. We have a few places that have been doing the electronic check system for a while now, but only if your check is more than $20. In 15 years of doing farmers' markets, we have never had one check bounce. The bank can't believe it when I tell them that. I should go knock on wood....but I am grateful. I have had one or two ask me to hold a check for a few days and I always do.

Why won't you own a debit card? It's just a paperless check.

Because my checks are duplicates and I'm not so good about crediting my register right away. I used to own an ATM card many years ago, for one month and that was all she wrote. I just think for me, it is safer to write the checks, LOL.

Yeah, I do have to be careful about remembering what I've spent and not entered in the checkbook. :)

I don't have a problem with them doing instant clearing on the checks I write IF the do the same with checks I deposit! And if they have the ability to do one they have the ability to do the other! So they no longer have any excuse for holding a deposit for 3 to 5 days as far as I can tell.

But gee, what ya want to bet that what is good for the goose is not good for the gander in this case....

There's a couple stores in Sioux Falls that already do the electronic check thing and it is printed on the back and then they hand it back to you as your receipt so I don't see how it could go through twice if they give you the check back. Can it?

Bobbie was telling me about this the other day. I guess I won't be buying many plants for a while. They get us everyway we go.

WalMart here already does that. It surprised me the first time they gave me the check back. Although, it does not clear immediately as you would think it would.

Such as this .. will definitely affect those of us .. that are a once-a-month and fixed income schedule folks, for sure!

TIs definitely gonna affect many many folks .. and in far more ways .. that any of us may be fully realizing ...

If ya stop and think about it ..
How many of us have put our check payments in the snail mail, toward the end of the month .. a bit in 'advance' of the actual DUE dates of bill ABC and XYZ .. in order to ensure that our payment 'is there' for that particular bil, etc. that's 'due' the next month ... feeling sure that by the time the payment is rec'd by each creditor and goes thru their companys' payment processing, then (their banks ) .. and, still is then sent to (your bank) - - feeling most certain and confident .. that your 'direct deposit' retirement income .. will have been already been deposited and posted to your bank account to cover any and everything ... ? ?

Will definitely and drastically affect the way many of us have had to cope with handling our monthly incomes and liabilities!

^ THIS new check law .. changes things drastically, from what I comprehend ... And chunks a mitey nice and significant kink into such things .. for
the minute the check payment/s are rec'd by their (the payor/merchants/financial institution) bank ... it is immediately considered 'payable' on THAT specific DATE > BY YOUR BANK ..

And, if per chance .. the electronic 'check' date of payment .. doesn't coincide with any 'adequate' funds/balances reflected in YOUR account ON THAT DAY .. (and hence, may NOT be 'paid/payable' depending upon your current balances ON THAT specific day your 'check' was accepted ... then > " BAM " ... There you have it !!

Yep, this was initiated to supposedly .. to aid the citizen/consumer ... by lessening the risks of the 'paper' checks having to be handled, and be misplaced, and irretrievable by being blown up and lost from plane crashes, auto wrecks, and from being stolen ... during transport/delivery to banks, finanical institutions, etc. - via couriers .. air/land/and sea, etc.

This is supposed to be another significant part of the Patriot Act, that has come about since 9/11 .. that is supposed to serve to help protect the USA citizens. Uh huh .. yeah, right !!

Some of this mess just has such a familiar odor to it ...

- Magpye

I understand what people are saying about floating a check for a few days but the last 5 years or so, most checks get to the bank within one or two days anyway. So I guess I don't see why people are getting upset about it. Pretty much like paying cash, on the spot. You have the goods, you pay!

This check writing is something that you don't see elsewhere. When family is visiting from Canada they are just amazed that I can write a check anywhere, even hundreds of miles from home. We're really spoiled here and like most people, don't like change, but change is inevitable, and time marches on. We can't change it, so we have to adjust to it and for some, it will be difficult. What it has to do with our security and the Patriot Act, I'm not sure, would have to look that up and since we can't discuss politics here, I'll quit now. :)

I'll tell ya what - If my bank took 5 days to credit my account with a deposited check, I'd switch banks!

So, if you write a check with this new system, would you still have to wait 10 days to return something? I guess if this is going to be the new system, I will use my debit card more often. What's the difference? I don't get my checks back now. My bank stores them. I read that link in it's entirety and it looks like a ploy for banks to make more money. The link itself says it will also make it harder to catch forgers and thieves. That is a bit scary.

I have online banking so I can see when a check clears. Two years ago, wrote a check to the IRS and dropped in off at the post office on a Friday afternoon. That check cleared on Tuesday morning. I was stunned!!!

The IRS wastes no time :)

We're always checking our account online. It sure makes balancing the checkbook easier.

I check mine online frequently too... because I forget to enter debits in the checkbok, LOL.

We switched banks last year, this winter I asked for the online info to get that set up and got, oh, we aren't online and don't plan to be any time soon. RATS!! Should have asked first - no clue what's in there now. Since we both carry a book of checks, it was so easy to go online and see what was left (if any!) :(

Even my tiny community bank with just 4 branch offices is online. Change banks.

May I ask, what is "floating" a check?

"Floating" or "Kiting" a check is writing one before the actual funds are in your account, hoping your paycheck or whatever will be deposited before the check gets to the bank and your account.

The feds view kiting as much more serious than floating.

Does direct deposit guarantee the funds will be in your account immediately or can they 'hold' them for 'clearance' like a paper check?

My SS check is direct deposit and the funds are available immediately.

My credit union credits my direct deposit paycheck the same day that it is issued.

Direct Deposit funds are supposed to be guaranteed (most definitely SAFER!!) ... and dd's oftentimes reach our banks and financial institutions .. a full day ahead of time (and I've seen it sometimes two days in advance) .. but the d.deposits are posted and labeled, as 'PENDING' .. the actual funds/monies' DATE PAYABLE ... So those such dd funds, are not available to access and/or use .. until the actual date payable!

In the event checks/debits come thru .. and, altho' your 'pending' D. Deposits are essentially 'there' - your account/s can, and will be charged accordingly .. if the actual account balances won't allow the amount of said check/debit presented, to be paid. The other exclusion to this, is if your bank offers overdraft protection. However, you'll still be charged for any NSFs - but, your check or debit will be honored and paid .. as opposed to being returned to the merchant. In somewhat legalese - the banks cannot and will NOT honor any such 'pending' direct deposits .. to cover any NSF/returned checks or EFT debits, of any form ..

- Magpye

Payroll Wages and Salaries, as such .. are definitely treated differently .. with Direct Deposit!!

I bank in 2 different banks. One is a large operation with banks all over the place, grocery stores, bank buildings & whatall. There I can deposit & it is immediatly avaiable. There is a wait if it is a certain type of check you deposit.
I've never had that probelm, as it also depends on your balance.
The other bank is a hometown type, with a branch in another town. If you deposit at the maun bank it is credited right away. At the branch, if you are there before 2PM it is credited that day. After 2PM it is credited next day.
My wife has a DD check. It is always there on the day it is supposed to be.
If your bank isn't on these kind of schedules, I would find a new bank.
On debit cards, the best thing that ever came along! I buy lots of supplies online. Order in middle of the night, product will be in your yard one day later.
Order your seeds online, the seed companies can't get them to you fast enough! Never waited over 48 hours! Send them a check & they wait untill it clears before they even try to fill your order.
Also at a store, it is so much easier to punch a four digit pin # than to write a check & sign your name.
I have a spot in my wallet that all debit card receipts goes in, when I get home they are entered, no probelm.
Bernie

Sadly enough, the days of playing "beat the bank" are over. When I was in my 20's I had it down to a fine art! LOL

With these new changes concerning checks, it is best to speak with your bank and ask questions. The bank I previously dealt with was going to charge an additional $3 a month just to receive cancelled checks. I found another bank where there wouldn't an additional charge, and promptly closed our accounts. Why am I so funny about having a cancelled check in hand? Because a checkbook carbon copy and a bank statement to match numbers wasn't good enough when we needed it - we had to pay the bank $4 for them to research and give us "their so-called official copy" of each specific check, to prove we were right.

Another reason to check with your bank is because of overdraft protection. Some will not charge you any overdraft fees if you have direct deposit, a savings account, or a mortgage with them. The differences between banks in the same area can vary.

As for personal checks, I will continue to write them every month and mail them out instead of paying them online. This is my personal opinion ONLY, but the more I use technology to pay my bills I feel I may be increasing the odds of someone's job disappearing. Okay, I am off my soap box concerning that. :o)

I know this doesn't directly relate to this thread but ......I also use a debit card, and after I swipe it I hold it face down when I put it back in my wallet. There has already been reported cases of fraud because of cell phones that can also take pictures. So many places don't ask for the 3 digit number on the back of your card when paying by phone, so it's easy to take advantage of someone's account should the numbers on front fall into the wrong hands.

Banks do not like to handle checks and charge businesses a fee for each check deposited. This added banking expense gets added on to the price of everything we buy.

We have places here that only take debit cards/credit cards or cash--no checks at all. And it was great on the way to the Round Up to just use my debit acard--even at mc Donalds!

In a few years, handwritten checks won't exisit. they will start adding fee to fee until electronic will be the cheapest way to go.

I really like this new thing. The pet store is the only place I know that does it already and I think it's great to not have to wait and for it to show up in my account right away. I'm sooo bad at keeping a checkbook. I always miss money somewhere and have to have my mom look it over and compare.

I have not knowingly floated a check in years but still wanted to make certain this would not affect us. I spoke to our bank about it and found out that since we switched to direct deposit our funds are available immediately and are even there early if payday falls on a holiday. We also have overdraft protection at no charge, which I was not aware of!

While we were talking I also discovered that if I switch my major credit cards to them I will lower my interest rates by 6 percent and they reinstated our free checks status which they had dropped last month for some reason.

I do use a debit card most of the time but have found that when I travel I still prefer using cash for small purchases such as fast food since many places still do not accept debit cards or worse charge a percentage of the total for the privilage. We got burned at a burger joint where they charged us a 3.00 dollar 'fee' on a 6.00 dollar order! Now that should be against the law!

It's amazing how things can vary concerning checks depending where you live or who you bank with. I am not charged an additional fee by our bank on our small business account for accepting/depositing a personal check.

There is a separate fee for a business if a check verification company is used. If things haven't changed recently, there also fees for honoring a credit card as well. No matter how you chop, slice or dice it up, I feel the consumer will always be paying some kind of indirect charge no matter what form of payment is used.