p.2 #2 · FS: What is the deal with banks and checks?
Mickey wrote:
"no joy" How many of you folks out there know where that phrase comes from?
That phrase is actually included in DOD's official dictionary, JP 1-02. In air intercept, it's a code meaning, "I have been unsuccessful," or, "I have no information."
p.2 #4 · FS: What is the deal with banks and checks?
I have bought many items which were paid by checks.Most members were told
to wait a week to 10 days "to clear",which is utter BS...My experience has been
that the check clears the same day deposited or the next day,period.
To show proof I usually take a screen capture(snipe) of the back of the check
taken from my online bank account and send it to the buyer where he can see
his endorsed signature.The only down side is the time it takes for the check
to get to the seller,snail mail etc etc.
My 2 cents...
p.2 #5 · FS: What is the deal with banks and checks?
Armee
could you explain the purpose of the taking a screen capture of the back of the check? I too have had no difficulty whatever with folks who have sent me checks. they clear into my account the next day. However, my bank has told me that the person issuing the check could put a stop order on it, or, when the check arrives at his bank, if there are no funds to cover it, then I'll in fact have those previously deposited funds withdrawn from my account.
Certainly one way to address this issue is for the person who is sending funds to go to his bank and have a bank cashier's check drawn up. Wells Fargo tells me that when that instrument is used, funds to cover it must be in the in their account, so, when all the signatures are in place, and the bank cashier's check is authorized, the funds are immediately withdrawn from his account, effectively then placed in the bank's account and it is that source from which the funds are withdrawn when the instrument is presented them for payment. However, my bank also told me that even under those circumstances, for reasons he did not make clear, that bank cashier's instrument could bounce as well. WHEW
p.2 #6 · FS: What is the deal with banks and checks?
I'm surprised that not many people, including most of my friends, know how check clearing actually works. Most believe that, when it shows up as available balance in their account, all is good. And this is the reason why there is a scam with personal check that still works.
Like many have already said, fund appears in your account because your bank honors you as a good customer. This is just like the bank gives you some credit for it. But it will take around 10 business days for a check to actually clear. (Just imagine that they will have to examine the check if it's real and authorized by the account owner. So, it's not quite possible that fund could be available the very next day.)
If the check is rejected, the bank will simply deduct the amount from your account. It's that simple (for the bank to do).
The moral is to accept checks only from someone you know or you're sure that you will get the money. Otherwise, wait for at least 10 business days first.
p.2 #7 · FS: What is the deal with banks and checks?
anthonysemone wrote:
Armee
Anthony....
By taking a screen capture of the back of the check ,it shows that the check has cleared the account,when you deposit a check you have to sign on the back to endorse it,if I can send you a pic of that signature,it means the check cleared my account and the the monies were withdrawn.
Of course a bit of DD is always required .
I have used this method of payment quite often lately with zero problems.
In all my transactions on FM ,I got taken once ,and that was when I paid by Paypal and the member
did not send the lens,he emptied his account and Paypal said whenever he puts money back in,they
will pay,which never happened.So Paypal is far from perfect,again getting a small perspective of
whom you are dealing with is always advisable.
p.2 #8 · FS: What is the deal with banks and checks?
anthonysemone wrote:
Armee
could you explain the purpose of the taking a screen capture of the back of the check? I too have had no difficulty whatever with folks who have sent me checks. they clear into my account the next day. However, my bank has told me that the person issuing the check could put a stop order on it, or, when the check arrives at his bank, if there are no funds to cover it, then I'll in fact have those previously deposited funds withdrawn from my account.
Certainly one way to address this issue is for the person who is sending funds to go to his bank and have a bank cashier's check drawn up. Wells Fargo tells me that when that instrument is used, funds to cover it must be in the in their account, so, when all the signatures are in place, and the bank cashier's check is authorized, the funds are immediately withdrawn from his account, effectively then placed in the bank's account and it is that source from which the funds are withdrawn when the instrument is presented them for payment. However, my bank also told me that even under those circumstances, for reasons he did not make clear, that bank cashier's instrument could bounce as well. WHEW...Show more →
The bank cashier's check could bounce if it's a fake....often there's a phone number that can be called to verify that the cashier's check/bank draft is valid. Never forget that it's trivial these days to make anything look 'official'.
p.2 #9 · FS: What is the deal with banks and checks?
yep, i expect that's why the customer service person went to the phone and dialed up a number and came back and told me that it could be deposited as "cash."
p.2 #10 · FS: What is the deal with banks and checks?
1KIND wrote:
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.
I DONOT ship items that are paid via ANY style check until I see the funds deposited into my bank account. Yes there are exceptions if I feel the FMer is OK.
Other than that..no ship until funds show on account deposit record.
I make that abundantly clear to the buyer upon sale and in my FS ad. Never had a buyer refuse.
Dan
p.2 #11 · FS: What is the deal with banks and checks?
The point is Dan that the money being in your account means nothing. If its a bad check it'll bounce about 8 days AFTER it cleared your account. Then your bank will take the amount back out of your account.
p.2 #12 · FS: What is the deal with banks and checks?
Indeed, Mickey; when I was in private practice and routinely accepting checks from folks in payment, I had one check that bounced after two weeks!!! It was large enough so that, having depended upon it for paying my own bills, it caused quite a cascade of bounced checks from my account. When it was all tallied up, given the amount of cash the person had to pay me, including bounced check fees I had to pay, well, I doubt that he did that again. He certainly didn't with me. TWO WEEKS
p.2 #13 · FS: What is the deal with banks and checks?
Mickey wrote:
The point is Dan that the money being in your account means nothing. If its a bad check it'll bounce about 8 days AFTER it cleared your account. Then your bank will take the amount back out of your account.
Not so with my bank. Sorry! Check your bank maybe it is different...with my bank if funds have been deposited aka "cleared" into my account a "Pending Details" is placed on my account deposit balance but NOT added to it.. Then the payors funds are withdrawn from his account, transferred to my bank and then placed in my acct. When the exchange of funds between banks has already taken place, The "Pending Details" is removed from "My Account Status" and amount added to balance total. "Bounced checks, cancelled checks(which after funds are deposited then withdrawn, incurrs a fee) and insufficient funds" is another matter. My bank labels a fund/check deposit "Pending" until actual money is transferred/deposited by payors bank thereby forgoing ANY ISF/bounced check fraud.
According to my bank, and I rechecked this after your statement, this is done to forego any depositor being hit with fees for bounced/ISf checks. It does take a few days longer to be deposited, not cleared but actual deposited, and as I stated above, the buyer is made WELL aware that this is how I do business here and anywhere. Never had ANY problems with cashiers or personal checks in over 50 years of doing business. Banks has changed names 3 times but policies on checking account has not.
Dan
p.2 #14 · FS: What is the deal with banks and checks?
jaybird555 wrote:
What about a wire transfer
Wire transfer's are immediate and can't be withdrawn once received by the receiving bank.
Regardless of what banks say, with the FEDRESERVE system we have, checks are cleared in 4 days Max. The banks use your money on the secondary money market, which they make interest on in the overnight market.
You get squat. IMHO banks are bigger crooks than the Mafia.
p.2 #15 · FS: What is the deal with banks and checks?
lukeb wrote:
Wire transfer's are immediate and can't be withdrawn once received by the receiving bank.
Regardless of what banks say, with the FEDRESERVE system we have, checks are cleared in 4 days Max. The banks use your money on the secondary money market, which they make interest on in the overnight market.
You get squat. IMHO banks are bigger crooks than the Mafia.
Correct! and as Dan sez..my bank here in Penna, does the same thing! All my deposited checks are "Pending" until actual cash transfer is done between banks THEN "Pending" cash is added to my balance.
The banks use this time period to make interest on that money prior to an also after adding to acct holders acct.
Angelo
, Mickey
It was large enough so that, having depended upon it for paying my own bills, it caused quite a cascade of bounced checks from my account. When it was all tallied up, given the amount of cash the person had to pay me, including bounced check fees I had to pay, well, I doubt that he did that again. 
He certainly didn't with me. TWO WEEKS