bank charges
Senior User
Joined: Jan 2009
Posts: 219
Likes: 0
From: Maricopa, AZ
Thank you, it's a neat forum.
Thanks again!
I agree that there is some risk to the institution, and to the account holder. But, if the institution cannot offer a service with adequate security for both the bank, and their customer, they should not offer the service. If they offer the service, their account service fees to the account holder, and security processes, need to be designed to cover these odd circumstances.
Simply put, if the institution is going to provide the service, they need to provide the mechanism to do it correctly. I have no problem providing the institution whatever identification is required, and would (grudgingly) be willing to wait a reasonable amount of time for the institution to make sure that the transaction is bonafide. (If I don't get my money today, I at least want a receipt while the transaction is verified.)
Thanks again!
However...
Risk: Even though there may be funds in an account to cover a check, the bank is still assuming a risk by cashing it. Checks may be stolen and signatures falsified, and in such an event the bank will make it good back to the account holder, and the bank loses. They must evaluate the check based only on a signature. In some cases they may try to call the account holder. But that usually is only done for larger amounts, and will result in a delay. The point is, once the cash is gone they may have to eat the loss. Fees from somewhere must cover these losses.
Checks are far from secure, even bank checks or cashiers checks. Don't take them unless you can afford to cover the loss. No matter who it is from. Don't take them from friends unless their friendship is worth more to you than the fee or delay.
Risk: Even though there may be funds in an account to cover a check, the bank is still assuming a risk by cashing it. Checks may be stolen and signatures falsified, and in such an event the bank will make it good back to the account holder, and the bank loses. They must evaluate the check based only on a signature. In some cases they may try to call the account holder. But that usually is only done for larger amounts, and will result in a delay. The point is, once the cash is gone they may have to eat the loss. Fees from somewhere must cover these losses.
Checks are far from secure, even bank checks or cashiers checks. Don't take them unless you can afford to cover the loss. No matter who it is from. Don't take them from friends unless their friendship is worth more to you than the fee or delay.
Simply put, if the institution is going to provide the service, they need to provide the mechanism to do it correctly. I have no problem providing the institution whatever identification is required, and would (grudgingly) be willing to wait a reasonable amount of time for the institution to make sure that the transaction is bonafide. (If I don't get my money today, I at least want a receipt while the transaction is verified.)
Moderator
Joined: May 2007
Posts: 158,421
Likes: 11,984
From: Greenfield, MA
Ken, how do they know that "friend" actually wrote the check? Friend was not there to provide ID. If the OP had stolen the check, faked the sig, and then cashed it, the bank would be out the cash. It is my understanding that banks will reemburse the account holder, so long as he was not aware of the stolen check and acted responsibly.
No offense to the OP, just using an example.
No offense to the OP, just using an example.
The banks have images of your sig on file and can verify that the check is genuine...at least to an extremely high probability. Of course there is always the possibility of a stolen check and/or a forged signature. That's why they will require positive ID from the party cashing the check...as well as recording their image during the transaction. I deal with small home town banks and have never been charged a fee for cashing a check drawn on their bank...even if I'm not a client at that bank. On the rare occassion that I deal with one of the biggies...I can't remember being charged a fee.
Hotshot
Joined: Aug 2006
Posts: 17,398
Likes: 317
From: Whittier, CA
As long as we're discussing how banks **** us off, my own bank is really conservative with holding the funds on checks deposited. Like 10 days I think it is. Now, we all know today that these things are processed electronically over the net, and funds are transferred no later than the NBD. All I can figure is they want to make sure that they not only have the funds, but that the other account holder does not claim fraud. Meanwhile they are holding funds from seemingly reliable sources like credit union checks.
Fortunately they make exceptions for checks for my normal payroll.
Fortunately they make exceptions for checks for my normal payroll.
Senior User
Joined: Jan 2009
Posts: 219
Likes: 0
From: Maricopa, AZ
I've been lurking for a couple of weeks now, and I can say it's one of the best forums I have seen in both the content, and quality of posters, out there. I've already taken advantage of the technical forums quite a bit.
I am waiting to get my 97 F250 HD (plain-jane workhorse) out of the air conditioning shop (between Phoenix, and Tucson, AZ -- AC is a must), then I'll load up my gallery with a pic, or two, and hit the new member area.
Hotshot
Joined: Aug 2006
Posts: 17,398
Likes: 317
From: Whittier, CA
And is also why fingerprints are sometimes taken from non-customers. They hope to help law enforcement recover their money. I know I was offended by that practice early on.
Moderator
Joined: May 2007
Posts: 158,421
Likes: 11,984
From: Greenfield, MA
No worries, manners are optional!
I've been lurking for a couple of weeks now, and I can say it's one of the best forums I have seen in both the content, and quality of posters, out there. I've already taken advantage of the technical forums quite a bit.
I am waiting to get my 97 F250 HD (plain-jane workhorse) out of the air conditioning shop (between Phoenix, and Tucson, AZ -- AC is a must), then I'll load up my gallery with a pic, or two, and hit the new member area.
I've been lurking for a couple of weeks now, and I can say it's one of the best forums I have seen in both the content, and quality of posters, out there. I've already taken advantage of the technical forums quite a bit.
I am waiting to get my 97 F250 HD (plain-jane workhorse) out of the air conditioning shop (between Phoenix, and Tucson, AZ -- AC is a must), then I'll load up my gallery with a pic, or two, and hit the new member area.
How about posting your first name in your sig so we know who we're chatting with. Also take the time to check out the AZ Chapter and sign up for membership. There are a few folks from the Phoenix area that post there...and they have some pretty good get togethers. I'm sure you'll be welcomed with open arms!!!
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Moderator
Joined: May 2007
Posts: 158,421
Likes: 11,984
From: Greenfield, MA
Bill...I've never experienced that one...yet. As I mentioned...I deal with a small local bank...when I walk into the branch I generally deal with...the VP always addresses me by name...asks how my father is...etc. Same deal at the teller windows...and drive thru...they always give me a dog biscuit...even if Cujo isn't with me.
Hotshot
Joined: Aug 2006
Posts: 17,398
Likes: 317
From: Whittier, CA
I don't think he can do a sig until 25 posts, but it's a good point anyway. Also, you can put your location in your profile now so we will all know where you are from. Sometimes that is even important when the techies try to diagnose a problem.
Post Fiend
Joined: Aug 2008
Posts: 6,751
Likes: 3
From: Sin City
As long as we're discussing how banks **** us off, my own bank is really conservative with holding the funds on checks deposited. Like 10 days I think it is. Now, we all know today that these things are processed electronically over the net, and funds are transferred no later than the NBD. All I can figure is they want to make sure that they not only have the funds, but that the other account holder does not claim fraud. Meanwhile they are holding funds from seemingly reliable sources like credit union checks.
Fortunately they make exceptions for checks for my normal payroll.
Fortunately they make exceptions for checks for my normal payroll.
Senior User
Joined: Jan 2009
Posts: 219
Likes: 0
From: Maricopa, AZ
Agreed. 
(I am pretty thick-skinned, and you had no reason to apologize. You can't welcome everybody, although the effort is appreciated!)
Thanks for the suggestions, I'll look into the local section, and figure out what I need to do to change the sig/profile. In the mean-time, my name is Jim, but I will answer to "Hey! You!". Have a good one!
(I am pretty thick-skinned, and you had no reason to apologize. You can't welcome everybody, although the effort is appreciated!)Thanks for the suggestions, I'll look into the local section, and figure out what I need to do to change the sig/profile. In the mean-time, my name is Jim, but I will answer to "Hey! You!". Have a good one!
Hotshot
Joined: Aug 2006
Posts: 17,398
Likes: 317
From: Whittier, CA
I don't know of a limit. But I know they hold it a lot more than 5 days. They make sure you know it each time, even at the ATM, so I guess they figure you can go somewhere else if you don't like it.
You old timers probably remember when you could deposit a check and ask the teller "could you please credit my account immediately, I need to draw on the funds". If you didn't ask, it might not happen until the next day. And she would do it. Yeah, they were all sheilas.
Ah, the good old days.