Don't Forget Check21 Starts This Month With US Banks
 

This new system allows bank to legally clear checks using transmission of an electronic image without having to deliver the physical check itself between banks to clear them.

What this means is that checks can literally clear in minutes now.

So floating will become a thing of the past.

Vice versa banks will no longer be able to justify putting holds on deposits, although they aren't under a legal requirement to do that under the new law. (which was written by the bank lobbyists obviously so they can still benefit from the float on your deposits that they get away with).

It will also be harder to put a stop payment on a check now.

This system begins October 21.

cool. i hope it works and works smoothly.

this is great now i won't have to wait a week or so for some of my checks to clear

Is this internal to the USA only, or can banks outside of the USA also verify cheques? Some banks hold on to USA funds for 30-45 days, or wait until the cheque comes back cleared (via slow paper mail)

good info, thanks man :thumbsup

cool

wish they'd do that shit in canada

The way this works is instead of banks physically transporting 40 billion checks a year between the paying bank and the receiving bank, now all they will do is scan the check into an image file and then send that image between themselves electronically.

The banks will then destroy the original paper check and the digital image of the check becomes the legal proof of payment.

Banks will save billions of dollars by no longer having to move checks back and forth.

The plan was started after 9/11 when the FAA shutdown all the airtraffic and the entire check clearing process came to a standstill for several days as a result.

Banks will also make a fortune on NSF fees since many people write checks before they do the deposit hoping by the time the check clears it will be covered. With the new system within minutes after its scanned it will be digitally cleared so the float will no longer be available.

It will also make it very difficult to stop payment on a check.

And if you need copies of your checks they will be in jpg format now.

That's excellent

more info about it here

http://www.snopes.com/business/bank/check21.asp

the article says it starts on 28 Oct, not sure which date is the correct, no big deal

Yes and no. I predict a ton of NSF checks from this change.

Plus when you deposit a company's check and they floated you get hit with a fee also when the deposit goes NSF. So the banks make money both sides of the bounce.

Finally! Im still learly about using wires or any online payment system like paypal or espassporte so i still get checks.

dont ask..


But this is pretty cool. No more waiting 7 days for canada checks to clear or 3-5days for US.

finally

someone should make paypal fund accounts quicker when using a check they hold you money for 5 days when in fact they have it within 12 hours

Hahaha yeh that'll be the day. PayPal is a master at using the float.

How will this affect check billing for paysites?

0 this is for paper checks

no doubt. Overall at least for a period of time won't be positive

you'll prolly still have to wait for canadian cheques to clear. chances are canadian banks don't have the system.

thanks for the info :D :thumbsup

so i wonder, if at all, how this will affect our industries current issues with online check transactions....

sure hope this will work with international checks! Would be nice!

Wow.. thanks for letting me know.. that's some pretty cool shit man

So if somebody gives me a check and it bounces when I deposit it I get charged?

How does that work?

Question is only how many banks will tell their customers that they have that international check cleared within a few hours. Robbers as most of them are they may still prefer to apply the usual 7-45 days hold. In that time, it's money for the bank, over all the transactions it adds up to billions one can use to play on the stock markets or to secure loans, I doubt they will get rid of that advantage voluntarily.

:glugglug

KRL..Thanks..
:thumbsup

It depends on your bank, but usually they do charge both parties in a bounced check situation. The writer of the check and the depositor.

I had some loser bounce a $15,000 check once in my account.

My bank appears to already be prepared for this. As of last month I can go online and see a scanned copy of my cleared checks :thumbsup

Wait a minute....

I remember reading somewhere the definition of a check is pretty liberal. Like it doesn't have to actually be YOUR check, it just needs YOUR authorization and the correct information on it.

IE..
http://www.terrence.com/java/cboard.html

So you could incorporate a java based signature file creator where people could take the time to get their signature as close to their real signature as possible (using their mouse) and then save it (or download it) for future use with that or other payment systems.

Then your system would autmoatically generate the image of a check with all of the users submitted information for the transaction, slap their signature on it and send over to whoever clears it.

I guess that's how the new check payment systems will probably go down.

:glugglug

Its the smaller banks that will take some time because the equipment is pricey. Most of the major money center banks are all ready to go or in process on implementation.

LOL, before they implemented ACH online, I setup my own system for people to authorize their checks digitally. I printed their checks and did the SIGNATURE ON FILE legal requirement and deposited them like a regular check. My bank was totally cool with it and accepted them as valid depositable checks.

:Graucho

you dont even need that, check by phone or web u can just print a draft

Yeah I've thought about all kinds of interesting (but legal) things to do with digital signatures like that in the past.

I'm sure it will be used a lot in the future.

Yeah... I remember all that... like ATS and whoever else processes checks does.

But with these new rules, having a signature (apparently?) allows for you to have the funds clear right away... the way I'm understanding this thread anyway.

I'm glad other people try out shit like this before I do. I'm sure the scammers/hackers will blow huge holes in this process at first and some people will get fucked. Eventually they'll fine tune it but I'd be willing to bet a good chunk of change that the original system they come out with has some major vulnerability.

If you use a good bank you wont wait for any checks to clear anyway whats wrong with you.

This is really nothing new alot of companies were doing this individually already.

Yeah I haven't had my bank hold a check in years. If you always have more money with them than the amount of the checks, why would they.

28th is correct.

If you were Wig's neighbor like I am, you've been hearing about this ALL THE TIME for the last year :thumbsup