- Joined: October 2000
- Location: Flushing, MI
- Post Count: 1,895
Re: Someone explain check holds to me...
My bank will put a hold on a check if there isn't enough in my account to cover it.
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- Joined: October 1998
- Location: Boise ID
- Post Count: 7,206
Re: Someone explain check holds to me...
There was a new set of banking laws passed a couple of years ago. These laws speeded up the process of servicing checks considerably. I don't recall the exact number but it used to be that the banks could hold checks for something like 3 weeks but the new law cut it down to a couple of days, PLUS making processing the physical paper check optional to the banks. Nowadays there isn't much legal difference between a paper check and a debit card transaction slip.
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- Joined: February 2002
- Post Count: 10,068
Re: Someone explain check holds to me...
It does seem odd that in an age where most any retail store or other business can scan your paper check and debit your account immediately, that banks don't seem to have this same ability and have to take days to figure out if the money is available to cover a check.
But most banks do enforce this waiting period.
Uncle Joe: I'll never marry you, Selma Plout! You may as well take off that wedding dress and put it back in your Hopeless Chest!
--Petticoat Junction--
- Joined: September 2005
- Post Count: 940
Re: Someone explain check holds to me...
Banks suck. I remember back in the day when Bank One was around and we had an account with them, they actually charged us if checks we wrote were cashed out of order. How the hell are we in control of when a business cashed our checks? They also charged us $7 every time our account went under $500, which happened oftened because we had to pay bills and usually never had more than $100 after paying them all.
We finally switched banks. Now we bank at a place that doesn't charge us stupid fees for stupid things that are out of our control.
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- Joined: February 2002
- Post Count: 10,068
Re: Someone explain check holds to me...
Quote:
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Originally Posted by Jimi C
Retail stores cant tell.
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Some of the larger chains are now processing checks electronically at the register, just like a debit card. They scan the check, their computer processes the account number and pulls the money from the account immediately. Some stores will actually hand the paper check back to the customer with their receipt (no need for them to keep it, the transaction is already processed and money received).
This is why people should not count on "a couple days" for the check to clear, thinking that they can write a check on Tuesday and their Thursday paycheck will cover it. Depending on where you shop, you could be in for a rude surprise in the form of overdraft fees from your bank.
Uncle Joe: I'll never marry you, Selma Plout! You may as well take off that wedding dress and put it back in your Hopeless Chest!
--Petticoat Junction--
- Joined: October 1998
- Location: Boise ID
- Post Count: 7,206
Re: Someone explain check holds to me...
Shopping around for banks is really helpful. I have savings in several banks (because of the FDIC limits) and I've been able to find some really nice ones. Zions Bank (formerly the private bank of the LDS church) pays good interest and is really helpful at waiving fees. Same with Idaho Central Credit Union.
Feline videophiles Susie and Dukie.
