When are checks actually deducted from one's checking account?

Discussion in 'Archived Threads 2001-2004' started by Jay H, May 23, 2002.

  1. Jay H

    Jay H Producer

    Joined:
    Mar 22, 1999
    Messages:
    5,654
    Likes Received:
    32
    Location:
    Pittsfield, MA
    Real Name:
    Jay
    Background
    Say, you have a checking account where you get charged a lousy $10 service charge anytime your account goes below say $1000.
    Situation
    Say you need to pay off your VISA bill but doing so will drop your account below the magical $1000 limit. However, payday is say in 3 days from now and then you'll have enough to cover the VISA bill. You can't procrastinate on the bill or else you'll pay late fees/interest. If you were to send out the check, when is the check actually debited out of your account, the day the payee cashes it or the date on the check itself? If I sent out the VISA bill knowing that it will take 4-5 days at least to get there and be processed, would I be safe in doing that knowing that I'll get paid in 3 days and my check will clear in about 4 days? Or do the banks use the date on the check and say "HA HA, sucka" [​IMG]
    Just wondering if I should post-date the check because of this...
    Jay
     
  2. Leila Dougan

    Leila Dougan Screenwriter

    Joined:
    Mar 27, 2002
    Messages:
    1,352
    Likes Received:
    0
    I do know that a lot of collection and credit card companies, etc, don't honor a "post date". They can cash the check once they get it. So, I'm inclined to think they cash the check when they get it, not according to the date on it anyway. You're taking chances, but I've done it a few times myself and have had no problems. Just put the actual date on the check and send it off. Hopefully you'll have already gotten paid before they go to cash it and you'll be fine.
     
  3. Ryan Wright

    Ryan Wright Screenwriter

    Joined:
    Jul 30, 2000
    Messages:
    1,875
    Likes Received:
    0
     
  4. Todd Hochard

    Todd Hochard Cinematographer

    Joined:
    Jan 24, 1999
    Messages:
    2,312
    Likes Received:
    0
     
  5. Danny R

    Danny R Supporting Actor

    Joined:
    May 23, 2000
    Messages:
    871
    Likes Received:
    0
    when is the check actually debited out of your account, the day the payee cashes it or the date on the check itself? If I sent out the VISA bill knowing that it will take 4-5 days at least to get there and be processed, would I be safe in doing that knowing that I'll get paid in 3 days and my check will clear in about 4 days? Or do the banks use the date on the check and say "HA HA, sucka"
    If you know it takes 4 days for the credit card company to get the check, and you get paid in 3 days, then you are fine. The check will pass through your account when they get notice from the feds that a check was issued. The actual date on the check or the date the company received it is meaningless.
    Banking 101: When you write a check, the company first has to process it to credit your account, update their own records etc. Often this may take a day. Then they send it on to a bank for deposit.
    With credit card companies, the company itself IS a bank, so that step is combined into one step.
    The bank then runs it through a machine that sends the info to the federal reserve, which handles the intrabank processing, automatically moving funds to and from banks.
    This step is eliminated if the bank that processes the check is the bank that the check is drawn from. This is why local checks can be cashed faster than out of state checks, because the bank the payee does business with might be the same bank you check from.
    Now for the legal stuff: writing a check which you know you don't have funds for is illegal. [​IMG]
     
  6. Malcolm R

    Malcolm R Executive Producer

    Joined:
    Feb 8, 2002
    Messages:
    12,939
    Likes Received:
    694
    Real Name:
    Malcolm
    Like they said about credit unions, or any bank with free checking. I have free checking from my local bank plus they pay me interest just because I have my paycheck deposited electronically.

    "Post dating" a check is a myth. Banks/creditors don't care what the date is; they'll cash it upon receipt regardless and your bank will honor it.

    And I'd be careful about assuming how many days it will take checks to clear. In the past few years, it seems to have become less and less. I've sent payments out of state that were charged back to my account in only 3 days. Some in-state payments are only 2 days.
     
  7. Chris Knox

    Chris Knox Stunt Coordinator

    Joined:
    Aug 10, 1999
    Messages:
    154
    Likes Received:
    1
    My current girlfriend works at a local bank here and has an unbelievable system for floating a check for years!!!

    Understand that you have to know how each individual business treats their books. Writing a check at your local Wal-Mart might take four days for it to clear. However, right next door at TGI Fridays might take a week. Your local mom and pop hardware store might take a day.

    She (my girlfriend) has ONE system where if she's tight on cash and a week before payday, she can write a check at, say Wal-mart. Then in three days go back to walmart and write another check for something else and becuase Wal-Mart will allow you to write a check over up to 25.00, she writes it over 25.00 and deposits the cash she gets into her account at work the next day.

    That money catches the old incoming check and the other check doesn't arrive for an additional 4 days!!! Her pay day covers that one!


    Boy, she'd be a mob accountant if they only knew some of her skills!
     
  8. Jay H

    Jay H Producer

    Joined:
    Mar 22, 1999
    Messages:
    5,654
    Likes Received:
    32
    Location:
    Pittsfield, MA
    Real Name:
    Jay
    Thanks for the info, I thought that was the case but wasn't sure.

    On a similar note, I've had this checking account since I was a freshman in college and I'm too lazy to change it, it's never really a problem keeping 1k in the bank, just that after paying the DMV NJ sales tax on a car, I know that it's would dip below $1k for a short bit. Not enough to overdraw my account but enough for a service charge.

    I've actually had a problem with a paycheck last year, because of our workschedule, we had a friday off that would normally be a payday, so our company gave us our paychecks on the thursday before the weekend.. However, the checks were still dated for Friday and I couldn't get any cash back from that check when I tried to deposit it into my account that same day because the date was in the future (the next day).

    Jay
     
  9. Malcolm R

    Malcolm R Executive Producer

    Joined:
    Feb 8, 2002
    Messages:
    12,939
    Likes Received:
    694
    Real Name:
    Malcolm
     
  10. CameronJ

    CameronJ Stunt Coordinator

    Joined:
    Feb 28, 2002
    Messages:
    244
    Likes Received:
    0
     
  11. Chris Lock

    Chris Lock Second Unit

    Joined:
    Jul 1, 1999
    Messages:
    258
    Likes Received:
    0
    > Writing a check at your local Wal-Mart might take four days for it to clear.

    And using a credit card gives you up to several weeks to pay, with no fear of bouncing a check.
     
  12. Ryan Wright

    Ryan Wright Screenwriter

    Joined:
    Jul 30, 2000
    Messages:
    1,875
    Likes Received:
    0
     
  13. Howard Williams

    Howard Williams Supporting Actor

    Joined:
    Mar 7, 2001
    Messages:
    521
    Likes Received:
    0
  14. Nathan*W

    Nathan*W Screenwriter

    Joined:
    Sep 9, 2001
    Messages:
    1,068
    Likes Received:
    0
    Real Name:
    Nathan
     
  15. Jay H

    Jay H Producer

    Joined:
    Mar 22, 1999
    Messages:
    5,654
    Likes Received:
    32
    Location:
    Pittsfield, MA
    Real Name:
    Jay
     
  16. CameronJ

    CameronJ Stunt Coordinator

    Joined:
    Feb 28, 2002
    Messages:
    244
    Likes Received:
    0
     
  17. MikeAlletto

    MikeAlletto Cinematographer

    Joined:
    Mar 11, 2000
    Messages:
    2,369
    Likes Received:
    0
    People still write checks? I charge everything then have my credit cards payment paid online right out of my checking account. I never carry a credit card balance so I never get hit with interest. Its like a $1000 or so interest free loan each month that I don't have to pay till the next month. I think the only check I write now is rent.
     

Share This Page