PeachParts Mercedes-Benz Forum - View Single Post

ramonajim · #12 05-25-2008, 11:46 AM

Quote:

Originally Posted by aklim

Certainty? No. But it is a damn sight better than them saying that "The check for $250 will not clear.". I'm not wanting to know how much is in that account but just whether that check, at this time will clear. IOW, if you wrote me a $250 check for the lawnmower, can I go to the bank right now and cash it. If I wait 3 days, it might not clear but if I ran down to the bank, I want to know it clears. The way they do it, they will not even tell you if the check will clear unless you are physically in front of them

They don't know. However, if you are the retailer, what would you rather hear? "This check will not clear at this moment" or "At this moment, the check is good."?

It probably does. However, why are other banks able to do it and they cannot? Either they are having a different take on the law or the other banks are breaking the law.

I don't bank with them for other reasons but I'm just wondering if somebody could use this "feature" to write bad checks with impunity. I have seen retailers do a "merchant verification" and refused the check because it would not clear. Will that catch every bad check? Probably not. But it does catch some.

If I were still a retailer (well, I wasn't exactly a retailer - used to have my own antique restoration and refinishing business back in the dark ages - when I was in high school/college) I wouldn't assume that Wells Fargo or BofA or any other bank telling me that the check in my hand is good right now means ANYTHING.

As others have pointed out, lots of places in the US (and most all of the UK, much of EU) have gone to electronic presentation - i.e. your check at Barnes and Noble is gonna process RIGHT NOW. Which may well happen between the time you hang up with BofA and the time you can get your rushing self off to the local branch to cash that $250 check.

On the flip side, 'mericans have long been in the (bad) habit of floating themselves a two or three day loan by writing a check today against tomorrow's payday direct deposit. That "No Mr. Aklim, that check will not clear" may not be valid two hours from now when that deposit posts.

If I were a retailer, I'd weigh the missed opportunity cost of not accepting checks (not a whole lot of smaller operations seem to be taking them anymore; I personally never bother carrying a check book) against the run rate of returned checks in my type of business/geographic area/perceived clientèle base against the cost of owning/renting/operating one of the electronic presentation accounts. My guess is that the numbers would come down pretty strongly supporting the notion of either accepting no checks or electronic presentation.

I'd give zero weight to what ANY bank told me about the ability of a given check to clear at a specific moment in time. In today's instant transaction world, that 'moment' is just to damn short to be meaningful.