Don't Forget Starting Thursday Checks Clear Same Day
 

Thursday banks begin clearing checks digitally. They no longer need the physical check to debit your account.

Checks will be able to clear the same day you write them, sometimes within minutes after you write them.

So if you write a big check in the morning thinking it will be covered by a large deposit later in the day, it doesn't work that way anymore.

The money has to be there ahead of the check now.

I can't wait to see this in action. Banks are going to make a fortune on NSF fees and account balances are going to be all messed up til people get used to this new era of banking.

Holy shit. That's gonna create some problems for a lot of people. lol

Is this only for paper checks or will we also have realtime verification for online check payments?

Cool, we might be getting closer to real-time e-check processing then :thumbsup

a check can be cleared just minutes after you write it? how is that supposed to work...how is the bank supposed to know you just wrote a check lol...

That would kick so much ass. :thumbsup

If you write someone a $10K check and they go and deposit it in their bank and you're thinking it'll be ok because you're depositing a $15K check before 2PM, the typical cutoff point and it will all sync at midnight (the old way) those days are gone.

:1orglaugh :1orglaugh :1orglaugh

It's really silly this isn't widely available now. Even the little computer store in town automatically debits your checking account as soon as they get a check from you. They run it through and hand the check right back to you.

I think he means if the person you wrote it to cashes it immediately, it will try and take the cash right away or bounce....

The purpose of this new system is to elimate the need for banks to transport and handle paper checks after they are written.

Now when you deposit someones check your bank will make a digital scan of it and then electronically send that digital image to their bank and the clearing process occurs in real time.

Your bank then destroys the paper check and the digital image becomes the legal copy of the check.

In the old system banks had to physically transport checks from bank to bank to clear. This costs them billions of dollars.

This new concept came about because on 9/11 when the FAA shut down the air transport system the banks couldn't clear checks because all the checks were stuck on planes.

I've had some companies promising it for 2 years now...."we expcet it to be available next month"....

Is this a national standard that's taking effect or is it up to each bank now to determine what kind of time frame to process a check?

WG

You would thing that for the amount of money involve dthey would have been all over it. Silly stuff.

that would be nice.

Perhaps the banks weren't ready to jump in on the idea....thinking they'd lose fees on returns? I don't see any other reasons to not do it....

Nationwide new system. The major banks already have systems in place. The smaller community banks have something like 6 months into 2005 to get the new system implemented.

thanks for the heads up. i didnt
know this was happening---you
just saved me alot of NSF fees!

lol

:thumbsup

so its basically like using a debit card now, lol

Awesome

They certainly aren't doing a good job of notifying the public about this.

I'm totally amazed since this completely changes the nation's entire method of check clearing and will impact everyone with a checking account.

Yep, you have to think like that now.

They want people to find out the hard way. it means millions for them.

I dont even have checks :1orglaugh

A hacker is going to make a killing on this.

Seriously, it's going to be a nice change, except for the fees we're going to be seeing because of it.

It will be interesting to see banks try and say that payments will still post in 3+ days....lol

Still doesn't answer my question. :) I'm interested as a webmaster, not a consumer (I'm outside the USA anyway).

With the online check system there are still bits of paper floating around between banks, right? That's why it takes several days to bounce. I'm wondering if this new system will shave a few days off that delay.

edit: by online check system I mean a consumer paying for a pr0n site via ccbill check

They kept the deposit laws intact. So they can still float your deposit money legally.

yea, you'd think our banks would
have had the courtesy of sending
us out a note or something. :(

but then again, they wouldnt make
NEARLY enough money then, fuckin
banks. :helpme

Wow - Misinformation at its finest. The proposition is called Check 21, I recommend that if you are really interested you Google it and read.

It does NOT require banks to do anything. It merely changes the law to allow banks to use electronic replacements. Plenty of banks will not use it, some will find it a god send.

I have been dealing with this mess for the last few months because I run websites that sell check paper and MICR toner.

My major check manufacturer was having a pain dealing with it, because it does NOT require change, so they were trying to save money by not testing things. I finally got them to give me a list of which ones were compliant and which ones werent, as a majority of the anti fraud technology in the checks are used to defeat scanning and this new way is to scan the check in.

For a short read try the Federal Reserve Board:
http://www.federalreserve.gov/paymen...on/default.htm

a small quote to prove the point:
The law does not require banks to accept checks in electronic form nor does it require banks to use the new authority granted by the act to create substitute checks.

Actually let me correct myself it DOES require the recieving bank to accept the check imaging method if the bank who has the check chooses to send it that way....

The biggest impact of this is that you will not be able to get your original checks back, and it has some changes in how fraud and recredits are handled.

This will not make a check clear immediatly. My fucking debit card payments can take more than a day to go through, you think a check will be faster? And if it did go through in 10 minutes, then so would my deposit and since I am not a shitfuck who lives week to week it will be me who gets the benefit not the bank.

that's word.

LOL, ok you think the major money center banks are not going to take advantage of a law that lets them save billions of dollars?

Wake up, who do you think got the law written in the first place? Bankers are as bad as lawyers when it comes to thieving and manipulating the laws for their financial gain.

Oh I know it will come about, it is actually the next logical step for check processing and is far behind in coming about.

The costs in terms of implementing this new solutions are quite high though, and out of reach for the community credit unions and smaller banks. As long as they dont convert over the large banks will still get stuck dealing with the paper trail. They already will save large chunks of money because they wont have to return the paper checks to the consumers or even keep them in storage for any amount of time. Internally they can scan them and then destroy the originals.

I know this just from talking to the banks I service as customers. The software we sell allows banks to make starter checks for thier customers, and we have smaller branches and credit unions that order all thier supplies from us. In talking to them 90% of them didnt care if the checks they were ordering were check 21 compliant at this time.

What I called misinformation is that it will all happen on Thursday, it will be years before this becomes fully implemented throughout the US.

Are you an adult webmaster?

I do some adult, but most of my money now comes from the mainstream sites. My new wife didnt like the adult work so I moved to branch out mainstream.

I still keep up with the boards, mostly because the adult community is on a higher curve as far as web related marketing and such, I always look to learn wherever I can