Just a reminder that Check 21 goes into effect Thursday. From that point on, assume that any check you've handed a business is cashed immediately. No more writing checks in the hopes that they won't clear until your paycheck gets in.
Basically, treat a check like a debit card.
Having floated more than a few checks in my day, I thought I'd pass the word along.
Posted by Farmgirl (Member # 5567) on :
Yeah -- working for a bank here, we are getting daily "information" e-mails on how to respond to customer questions about this. It is getting a little redundant. But I read them anyway....
Farmgirl
Posted by Dagonee (Member # 5818) on :
Yes - good warning.
Just don't expect the checks you deposit to clear more quickly. I think a vast majority of them will, but not with enough regularity you can count on it.
Dagonee
Posted by xnera (Member # 187) on :
So, does that mean when I add funds to my PayPal account from my checking account, the funds will transfer faster? I hate having to wait DAYS for the money to hit. I tend to transfer funds on Fridays, as that is when I get paid, and the funds don't become available until next Wednesday.
Thank God I do transfer funds, though, because otherwise I would have been stuck downtown yesterday! I had forgotten to call the credit union to ask them to take the hold off my account so I could withdraw money for bus fare, and had to rely on the PayPal debit card to get some cash. Whew! But then, this is exactly why I've been making sure I have a little balance in the PayPal account. Never know when you will need access to cash fast.
Posted by Farmgirl (Member # 5567) on :
I don't know that this will affect PayPal at all, xnera, since that is already an electronic transaction. I'm not sure why there is a delay on PayPal deposits.
All this does is allow banks to communicate debits (checks) to each other electronically and have it accepted as legal.
So if I were in Chicago and wrote a check -- instead of it taking a couple of days for the bank up in Chicago to send my paper check to my bank here in Kansas to have clear -- the bank in Chicago could just electronically send an image of the check to my bank, and my bank would have to recognize and pay it. The image is as good as the real thing now.
So it could clear within 24 hours, without the paper check ever actually reaching here.
Farmgirl
Posted by Arthur (Member # 4026) on :
They did issue a warning on this- Make sure the check only clears once - on test runs banks have been clearing the electronic check and also the paper one after it is received and it is up to you to make sure that you don't pay for something twice.
Posted by Chris Bridges (Member # 1138) on :
Deposits won't be any faster -- although the feds will look at increased speed as a result of this change to see if permitted deposit holding times need to be reduced.
However, many banks have already been clearing deposits faster than they're legally required to. I suspect it'll become a competitive service, like free checking.
[ October 26, 2004, 01:40 PM: Message edited by: Chris Bridges ]
Posted by Belle (Member # 2314) on :
Well, it annoys the heck out of me, the way our bank puts a mandatory five day hold on any check over $5000.
Which, we get a lot of, in our line of business.
I've considered changing banks just on the hold times alone.
The thing that is annoying is that they clear the deposit usually before then, but don't release the hold. If I call and stay after them, usually I can get them to release it earlier, say in two days. Frankly, I don't like having to hound my bank to release my funds - I think they should do so as soon as the check clears.
Posted by sarcasticmuppet (Member # 5035) on :
Glad to hear it. I hate writing checks--I much prefer using my debit card, so it can be cleared immediately.
Posted by pooka (Member # 5003) on :
The first time Wal-mart turned my check into a debit transfer I got that "mark of the beast" thrill.
![[Smile]](smile.gif)
I think a vast majority of them will, but not with enough regularity you can count on it.![[Mad]](mad.gif)
![[Evil Laugh]](graemlins/evillaugh.gif)