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Archive 2012 · FS: What is the deal with banks and checks?
  
 
snapsy
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p.1 #1 · FS: What is the deal with banks and checks?


I deposited a check for a large ticket item I sold here on FM. My bank made the funds available the next day, so I called to just confirm that the check actually cleared that fast. They said no, that doesn't mean the check cleared, it just means they made the funds immediately available because I'm a customer in good standing. So I asked the obvious question, how do I know when the check clears? And they told me there is no way to know. Come again? They said the department which handles the checks does not communicate with other aspects of the bank, and that the only way to know if a check clears is by knowing when it doesn't clear..ie, when the check is rejected for whatever reason and the funds get "un-deposited" from my account. They recommended I check my account daily to see if the deposit is still there to know if there's an issue.

Am I the only one who thinks this is ridiculous? This seems like such a basic function of banking. This was BoA btw. I spoke with my local Wells Fargo manager and he basically told me the same thing. He said the issue is that even if the funds clear, a check can come later for any number of reasons, all of which would cause the deposit to be backed out of the account. He listed reasons like fraud, fake checks, etc... I asked him if that's the case, how can we ever know when the check is actually good and there's no risk of a chargeback? He told me you can't ever know, and it's a dirty little secret of banking. To me this makes checks worthless as a means of exchange.

I'm interested in hearing other FM'ers experience with this.

Edited by Fred Miranda on Sep 11, 2012 at 03:09 AM · View previous versions



Sep 11, 2012 at 02:18 AM
1KIND
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p.1 #2 · FS: What is the deal with banks and checks?


HSBC and Citibank also makes funds available after 2 business days. After 5-7 business days, I ship items. This is typically how long it takes to officially clear. never had a problem.


Sep 11, 2012 at 02:22 AM
SteveF
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p.1 #3 · FS: What is the deal with banks and checks?


Wells Fargo says 10 business days.


Sep 11, 2012 at 02:24 AM
Chris Cooke
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p.1 #4 · FS: What is the deal with banks and checks?


this is why when i get a check i just go cash it at the bank it is drawn on. if i cant do that....i dont accept a check.


Sep 11, 2012 at 02:27 AM
snapsy
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p.1 #5 · FS: What is the deal with banks and checks?


SteveF wrote:
Wells Fargo says 10 business days.


They say 10 business days but the branch manager told me checks can be returned back anytime in the future in perpetuity, and that the depositing customer would always be responsible if that were the case. He said after 2 weeks there's rarely an issue but he said the bank wont indemnify you against loss even after months have gone by.



Sep 11, 2012 at 02:28 AM
jaybird555
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p.1 #6 · FS: What is the deal with banks and checks?


What about a wire transfer


Sep 11, 2012 at 02:32 AM
ChrisDM
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p.1 #7 · FS: What is the deal with banks and checks?


Checks are so 20th century. There are more efficient methods now...


Sep 11, 2012 at 02:33 AM
bigbluebear
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p.1 #8 · FS: What is the deal with banks and checks?


paypal ftw?


Sep 11, 2012 at 02:35 AM
cheem
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p.1 #9 · FS: What is the deal with banks and checks?


I am in Canada and it is totally up to the bank. In my case they will release funds immediately but that does not speak to whether or not the cheque is good or not.

I have heard that is how the scammers work with unsuspecting victims. I saw a 60 minutes story that it can take 45 days to sort it all out.



Sep 11, 2012 at 02:35 AM
jaybird555
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p.1 #10 · FS: What is the deal with banks and checks?


ChrisDM wrote:
Checks are so 20th century. There are more efficient methods now...

OK, the suspense is killing me!!!



Sep 11, 2012 at 02:38 AM
 

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jaybird555
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p.1 #11 · FS: What is the deal with banks and checks?


I'm surprised that we haven't been notified by the "Buy & Sell police" that is not an appropriate subject for this forum


Sep 11, 2012 at 02:48 AM
thedigitalbean
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p.1 #12 · FS: What is the deal with banks and checks?


jaybird555 wrote:
What about a wire transfer


When the money appears? My understanding is that wire transfers are a done deal the instant the money shows up in your account.



Sep 11, 2012 at 02:51 AM
jaybird555
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p.1 #13 · FS: What is the deal with banks and checks?


thedigitalbean wrote:
When the money appears? My understanding is that wire transfers are a done deal the instant the money shows up in your account.

Not so fast, someone can send you wire transfer and the funds will be available instantly,it doesn't mean the funds cleared, the person that send the wire transfer could use a bogus check to make the deposit and it could take time for the bank to find out (It is called flashing) BEWARE.



Sep 11, 2012 at 03:04 AM
Wobble
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p.1 #14 · FS: What is the deal with banks and checks?


The only way to come out even, one would think, would be to go to the bank upon which the check is drawn and cash the check like Chris Cooke said above. If it is drawn on your bank, they write your account number on the back of the check and may/will hold the funds on your account for their arbitrary time period and do a charge back if the check is no good.

If it is not your bank, they may charge you a POS non-bank customer fee for cashing the check, and you think that you have your money free and clear, but they took down your contact information and possibly fingerprint to know who to come after.

When you give out your account number for an incoming wire transfer, it may also give them permission to do an outgoing wire transfer also. Many paychecks are direct deposited, and if an error is made, they suck the original amount right back out.




Sep 11, 2012 at 03:27 AM
jaybird555
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p.1 #15 · FS: What is the deal with banks and checks?


jaybird555 wrote:
I'm surprised that we haven't been notified by the "Buy & Sell police" that is not an appropriate subject for this forum

BUSTED !!!



Sep 11, 2012 at 03:29 AM
thedigitalbean
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p.1 #16 · FS: What is the deal with banks and checks?


jaybird555 wrote:
Not so fast, someone can send you wire transfer and the funds will be available instantly,it doesn't mean the funds cleared, the person that send the wire transfer could use a bogus check to make the deposit and it could take time for the bank to find out (It is called flashing) BEWARE.


Not so sure about that. It would up to the sender's bank to verify availability of funds. Once the wire transfer is complete my understanding is that it can't be reverse (i.e. your bank isn't just to wire the money back). If the sender used a bogus check and then sent the wire, I believe they would be the ones left liable, not you.



Sep 11, 2012 at 12:37 PM
jcolwell
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p.1 #17 · FS: What is the deal with banks and checks?


thedigitalbean wrote:
When the money appears? My understanding is that wire transfers are a done deal the instant the money shows up in your account.


In my experience, yes. Wire transfer is instantaneous. They won't make the wire transfer unless your account has sufficient unencumbered funds.



Sep 11, 2012 at 07:54 PM
anthonysemone
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p.1 #18 · FS: What is the deal with banks and checks?


I was just notified by my bank, Wells Fargo, that their and Bank of America customers can transfer funds to each other and that such a transfer appears to be "same day" though limited of course by the accounts balance. This option is not a wire transfer but rather, apparently, an EFT. I've tried to find a fee schedule in WF's TOS but so far no joy. Anybody else here with WF? or BoA? care to chime in?


Sep 11, 2012 at 08:43 PM
Mickey
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p.1 #19 · FS: What is the deal with banks and checks?


What you say is standard practice. The "check clearing" we are concerned about is clearing the others person's account, not your's and we just don't know when that happens. Usually 10 days will take care of it. A wire transfer is quite different. The bank sending the transfer will not send the money until they have pulled it out of the senders account. Very safe way to send and receive money just not 100%. You always have to be on the alert for fraud.


Sep 11, 2012 at 10:06 PM
Mickey
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p.1 #20 · FS: What is the deal with banks and checks?


anthonysemone wrote:
I was just notified by my bank, Wells Fargo, that their and Bank of America customers can transfer funds to each other and that such a transfer appears to be "same day" though limited of course by the accounts balance. This option is not a wire transfer but rather, apparently, an EFT. I've tried to find a fee schedule in WF's TOS but so far no joy. Anybody else here with WF? or BoA? care to chime in?



"no joy" How many of you folks out there know where that phrase comes from?



Sep 11, 2012 at 10:08 PM
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