Canceled checks, ‘float’ soon to disappear

[freetobegay]

Every night, millions of cashed checks fly around the country, headed for their home bank. Starting in October, technology will start to ground many of those flights. And it may ground some consumers, too — those who try to sneak an extra day or two of "float" out of their checking accounts.

Consumers trying to stretch their money have become accustomed to taking advantage of "the float," the time it takes after they write a check for banks to deduct from their accounts. It's a bit of a secret loan, but it's about to be shut down for good.

Also about to be historical artifacts: bank statements packed with canceled handwritten checks.

The new era of banking begins in October. Banks will slowly get away from the business of flying checks around the country each night. Instead, checks will be cleared electronically, and often destroyed when they are cashed.

http://www.msnbc.msn.com/id/5880440/

______________________________________________________________

I have mixed feelings about this, I like getting my canceled checks back!

[radwriter0555]

1. One thing that WILL continue to slow checks down is tearing the check

and writing the signature down through the codes at the bottom.

When that happens, the check has to be set aside and manually entered both by the receivor and the bank.

You get 2 more days.

[ronnykmarshall]

9. Buzzz!

Wrong.

Sorry but I've worked in item processing for a bank for almost 20 years.

Writing on the MICR line (the bottom of the front of the check) does nothing to delay the processing of the check.

It may slow down the process of a check for a few minutes, but not two days.

Unless the entire MICR line is remove from the check, the check will be processed and sent to the bank it is drawn on. And if entire MICR line is gone, whoever excepted that check is an idiot.

Save the ink.

[frankly_fedup2]

33. Well maybe. . . .

I once worked in a banks data entry department. When the sorter (big machine that broke down ALL the time) threw out a check it could not read, we put them into separate piles for data entry before the end of the day. It didn't give anyone any extra because we had to get it done by the end of the day for all the reports that were run to match up. Also, we had a room of woman that just did data entry entering the appropriate codes, then we had to run it through the sorter (which printed out each sorts information). As long as the reports all matched up, then the checks were sent on through to microfilm (another big machine), and then they still (at that time) had storage for the paper checks but not at the bank.

I no longer work there. I had a supervisor tell me (when I made an error on one report while I was still in my 90-day training period)that my position was considered an error-free job. I was expected to NEVER make an error. I looked at her, thought about it, then I told her, "You don't pay me enough in the first place and second, I'm a human being, just like you, and I'm sure you make mistakes, right? She said yes but her job was not considered to be an error-free position. I looked at her again, told her good luck in finding a perfect human being, because that was just too much stress for me, especially being paid minimum wage, but since it was an office job, well you know how the women at the banks have to dress. The bank I worked for barely paid me enough to afford the clothing. Luckily, before I worked there, I had worked at another office job for years so I had plenty of dress shoes and clothes.

[donco6]

2. So, will the stop payment float disappear, too?

They usually take their sweet time stopping payment on checks.

[ronnykmarshall]

11. What's a stop payment float?

Are you talking about a hold on a deposited item?

If so, from what I've been told the fed (Federal Reserve) has not yet changed the hold requirements. (Surprise, huh?)

However, they are SUPPOSED to do so soon.

Note to anyone reading this thread, many of the effects of this law (Check 21 as it's called) will slowly take effect in banks.

It depends on where you bank and how geared up they are for this.

[mhr]

3. Thousands Of Pilots Will Lose Their Jobs Over The Coming Months

As the airplanes normally used for this service sit idle.

[ronnykmarshall]

12. Not really.

Many banks use commercial flight to transport checks.

Yes, a lot of banks use chartered flights. But they also have other cargo on those planes as well.

It's not like is will happen overnight. Banks have to have an agreement between each other to have "Image Exchange" (which is transmitting of check image bank to bank) and from what I've seen, most banks are trying to get set up to the technology at this point.

Most smaller banks could give a rats ass about this. It's not worth the expense to try and save a day or so on clearing a check.

[mhr]

14. I Used To Fly Night Freight Carrying Canceled Checks

There are several small niche companies that will no longer exist because of this. Their pilots will be out of work.

[ronnykmarshall]

20. Ameriflight is one too.

It sucks. I agree. There really isn't that much of a gain from all this.

The damn ability to recieve the image transmissions cost so damn much. Just flight the damn checks!

[mhr]

24. Yes Ameriflight - I Flew For Them - We Ran Checks Between

Dallas and New Orleans Monday through Friday.

[ronnykmarshall]

26. Ameriflight rocks

So many times late at night we had problems with work flying in from parts of California and they whupped ass locating it.

99.9% of the time it was the ground transport that messed it up.

[mhr]

29. Yes, They Do Run A Mighty Tight, Lean Ship

Our on-time delivery performance was 99.8 %

Let's see the airlines beat that!

One night we flew into Centennial near Denver.

From touchdown to the next takeoff took only 14 minutes.

That included, restroom break for both pilots, getting the new weather, new flight clearance, unloading the plane, refueling and restarting the plane, and running all the checklists. Sounds impossible but we did it regularly in less than 20 minutes.

I enjoyed my time with them in Texas.

[ronnykmarshall]

32. They sure do.

When my bank was still in SF (Bank of California ... before the merger w/ Union Bank), we were running late w/ our large dollar items for the east coast banks.

I was able to call Ameriflight and they were so cool. They said as long as we got the work to them within 15 min of the deadline, they would make sure we got the work on the plane.

The dispatcher even CALLED me when the work was checked in at the airport.

They fuckin' rock.

They saved my ass that night.

[Warpy]

4. I've had a cheapo account for years

and I keep carbon copies of checks, and the bank photographs my checks on microfilm and then destroys them.

The two times I've needed to get cancelled checks to prove payment, I've gotten photocopies within a week, no hassle at all.

I'm not sure how this will be handled if the bank never gets the physical copy of my check, though.

[WoodrowFan]

8. my credit union

my credit union provides an electronic copy of the cancelled check available when I log onto my account.

[ronnykmarshall]

13. Images of check

What really kicks ass is if you bank provides electronic images of your checks.

The quality of the check is 1000000000% better and it's easier to locate.

Our adjustment and photo retrieval department at my bank love it.

Plus some banks provide internet copies of your checks if you have on-line banking.

[ellie]

5. This is fine and all

but what if the company's bank (who you wrote the check to) makes a mistake and posts the check for the wrong amount? This recently happened to me and the bank had to wait for it to come through the system. How will I be able to prove they made a mistake?

[ronnykmarshall]

15. Make sure you check your statement.

or if you have on line banking, check you posted checks.

I am ANAL about monitoring my account.

With the new processing of checks, it should help if a check is posted for the wrong amount.

Hell, it really should be any difference now. But some banks have stick up their asses when it comes to researching posting errors.

I raised a stink over at 10 cent difference one time when a credit card company posted my payment for 10 cents less (I was paying off my balance). My credit card was at fault and one of their customer "service" people tried to tell me it was my banks fault. WRONG!!

My advice to people is this: Keep good records of your checks. If you have the ability to check you accounts on-line, do it!

One of my biggest pet peeves when I worked in a branch were people that didn't have a CLUE as to what check number or what the dollar amount of a check. I actually had a customer say to me "how can I be over drawn? I still have CHECKS?"

[serryjw]

6. I lost my Visa/MC float on my debit card 2 years ago

at US Bank....You know insated of hit debit at the machimne you hit credit......For years I had a float because it had to go thru the Visa/MC network NOT the debit network......well US BANK decided THEY WANTED that 3 day float.....They take the 'available money' out of my account even so THEY don't pay Visa/MC for 3 days....thats the shits!

[ronnykmarshall]

16. US Bank sucks.

I've read more horror stories just on DU about them.

They bought out Bank of Santa Monica and really don't know how they keep that branch here in West Hollywood open.

Same with Citibank. They took over Cal Fed and within months of the merger, they service charged us out of there. We walked across the street to BofA (this is our vacation/'I don't wanna pay an ATM Fee since RKM'S bank doesn't have that many ATMs' accounts) and the folks as BofA (Bank of America) said they had TONS of people do the same.

[mountainvue]

17. US Bank

is the worst. You should check out a friendly local bank.

[ronnykmarshall]

19. If there are any left there, Stevie Nicks fan!!

:loveya:

Pisses me off that some many local banks are gone.

I'm in between a rock and a hard place. I work for a large bank (Union Bank of California), but in my department we support smaller banks to do item processing with us. I LOVE small banks. My clients (the small banks) are the greatest people. They care about (and KNOW) their customers.

[mountainvue]

36. I love small

banks too. I use Compass and used to use US Bank because they bought Colorado National.
I bet Stevie likes small banks too.:P

[Junkdrawer]

7. Damn. There have been numerous times when a canceled check...

proved I paid a bill someone said I didn't.

I have canceled checks going back 15 years...

[ronnykmarshall]

18. Damn!

You really don't need to save them that long. To be on the safe side, save check for really important things like rent, mortgage, insurance and stuff like that.

Word of advice. Banks only save photos/images of check for 7 years (some longer if they have the storage ability).

[Junkdrawer]

21. LOL. I bought a banker's box, and that's how many years it holds...

Nevertheless, I still want my canceled checks.

[Ms. Toad]

27. You can still get a paper equivalent...

The image at the top of the thread is the legal equivalent of your check. The bank that converted the check from the actual paper you wrote to the electronic image is required to make a bunch of guarantees that make it the legal equivalent. You should be able to get paper copies of the electronic image (check your bank account terms and conditions). You may need to get new files, though, since the images are scaled to commercial check size, rather than personal check size.

[ronnykmarshall]

28. My step mom's the same.

Many small banks will NOT charge to get your checks back. Being on "the inside" I can get images (copies) of my checks when ever I want for free. I used to be able to dig through the vault and pull out my checks and take them. Now, I don't have a clue as to where those puppies are.

[Cleita]

10. I decided to give my bank the benefit of the doubt and not

get my cancelled checks back because I really lack storage space for files and such. When my propane dealer accidentally posted my payment onto someone elses account, the hassel of getting a readable picture of the check and endorsement to prove I had paid the bill was more than I wanted to fool around with in the future. The Bank does not make the effort to make readable microfilms of the checks a policy so the results will vary as I found out. I get all my cancelled checks back now.

[vetwife]

22. I heard this today but you know what?

There are some still little groceries stores who won't take all their deposits to the bank until the next day and then when they deposit, in their account, it will still take a day to withdraw from yours. Just write checks after 2 or 4PM and get he money in by the next day before 2:00. It is the only way poor people can eat sometimes.

[ronnykmarshall]

30. Thank god for the small stores, huh?

I sometimes feel like the evil banker man (ala Mr. Drysdale in the "Beverly Hillbillies") since I work for a bank.

But small little mom and pop places still deposit checks later in the day.

Those are people that I love. They show up with their deposit, chat it up with tellers and still have the smarts to have the deposit in balance.

*sigh* The good old days, huh?

[serryjw]

35. That ONLY workd when........

they don't do business with YOUR bank....if they do.....you are out of luck....I got caught ONCE doing that.

[AP]

23. In the UK, the bank holds on to the float for a few days and makes money

off of it. The payor has the money removed from their account, so they're not getting interest, and the recipient doesn't get the money, so they're not getting interest (presuming it's an interest bearing account). The bank gets free money for three days.

I read somwehere that this is worth millions a year for the banking industry merely in money they don't have to pay intereste, and then they make more millions from using the money.

[cally]

25. The IRS requires a copy of the cancelled check

to prove a donation. A carbon copy of the check is not enough. I wonder if they will change the rules.

[ronnykmarshall]

31. Not true

A photo or image of the check (front and back) from the bank are proof enought for the IRS.

My step-dad is a CPA.

Yeah, the carbon copies are not excepted, but a bank provided copy is fine. I don't know about an internet printed copy however.

[Piltdown13]

38. Out of curiosity, is there anything that the carbons are good for?

My bank offers regular checks or the "carbon" ones, and since they charge extra (or at least they used to) to provide you with images of your cancelled checks, I've been going with the carbons. I check my accounts online usually every couple of days and have never had a problem, but it occurs to me that it could be a different story if I were to actually have to *prove* I paid something (of course, I pay most bills online these days...).

[ronnykmarshall]

42. There only good for keeping track.

People use them when they don't record checks in their check registar.

[markus]

34. You can get a copy of the imaged check

You'll just have to pay for it.

Hell, I haven't gotten a paper check back from a bank since the late 1980s.

[malatesta1137]

37. I sure hope Saddam still has the canceled checks

of the WMDs he purchased from Donald Rmsfeld in the 80s. They'll come in handy during the trial.

[TorchTheWitch]

39. i haven't gotten a real

canceled check back in a few years. With my monthly statement comes some kind of electronic photocopy of each check... they're minature in size, there are no cancellation markings that are in any way readable (mostly due to the reduced size and quality of copy), and several appear on the same sheet of paper. I hate it. I want my original cancelled checks back. Obviously, the bank doesn't give a crap what I want.

[Yupster]

40. My credit union stopped

sending my checks back a couple of years ago.

[Sugarbleus]

41. This new banking crap is outrageous for me!!!

I don't "float" checks..I only write checks when I have the cash. That part isn't an issue for me.

The part that is going to blow my fuse is NOT SENDING BACK MY CANCELLED CHECKS. I NEED them for my records.

I'm disabled. I send someone else to the bank to make occassional deposits..I have direct deposits for the rest. I do not use online banking because I don't trust it and it's more trouble than it's worth for my lifestyle.

I MUST have hard copy checks to show; to verify payment for certain things quarterly. Electronic transfers won't cut it. I may be able to get away with the statement proof of check for some things but certainly not for others. This is going to screw up my already difficult life some more. I'm pissed.

My cancelled checks ARE MY RECEIPTS!! I don't want to PAY to have them copied (if my bank does that) or schlepp back and forth for the service in any case! I paid for the damn things in the first place, I want them back when they are cancelled!!!!!!!!!!

Is anyone else kinda "over it" with all the constant "changes" in services we see almost daily??????? Every time I turn around, something has been removed or added....it's INFURIATING. I LIKE constancy. SOME change is a good thing. Continual change is RUINOUS.

I've heard that I can go to a "local" bank and do better. That sounds good. However, my local bank won't have the services I need like: Universal ATM/check writing services if I'm on vacation for example.

Corporate America, Leave us the Hell alone! Geeez, I'm so furious.

[ronnykmarshall]

43. Use internet banking.

A lot of banks offer images of clearned checks via the internet. You can print out the checks you need copies of and store them.

What stinks is that people that want their checks back have to pay for them now.

[ronnykmarshall]

44. Use internet banking.

A lot of banks offer images of clearned checks via the internet. You can print out the checks you need copies of and store them.

What stinks is that people that want their checks back have to pay for them now.