Official CHECKS information thread

[KotOD]

Many of you are treating the banking process and the handling of checks as if banking is fire and poker players are cavemen, so here ya go:

http://en.wikipedia.org/wiki/Cheque

"A cheque or check, is a negotiable instrument[1] instructing a financial institution to pay a specific amount of a specific currency from a specific demand account held in the maker/depositor's name with that institution."

"An order check – the most common form in the United States – is payable only to the named payee or his or her endorsee, as it usually contains the language "Pay to the order of (name).""

"A payee that accepts a cheque will typically deposit it in an account at the payee's bank, and have the bank process the cheque. In some cases, the payee will take the cheque to a branch of the drawee bank, and cash the cheque there. If a cheque is refused at the drawee bank (or the drawee bank returns the cheque to the bank that it was deposited at) because there are insufficient funds for the cheque to clear, it is said that the cheque has bounced. Once a cheque is approved and all appropriate accounts involved have been credited, the cheque is stamped with some kind of cancellation mark, such as a "paid" stamp. The cheque is now a cancelled cheque. Cancelled cheques are placed in the account holder's file. The account holder can request a copy of a cancelled cheque as proof of a payment."



http://forumserver.twoplustwo.com/sh...age=0&vc=1

"HOW TO CASH A CHECK

a. If you have a bank account somewhere, take it there to cash it. You can go through the drive-thru or inside. Signing the back is called "endorsing", so endorse the check and give it to the teller along with your picture I.D.

b. If you don't have a bank account anywhere, you can take it to the bank that issued the check. Look on the check, you'll see the logo or name of the bank somewhere. They will also take it. Do the same procedure: endorse the back and give it to the teller with your I.D."


http://www.cdnpay.ca/faqs/cheques.asp#1

"How long does it take for a cheque to clear?

First, it is important to clarify the definition of "clearing": it is the process through which financial institutions (FIs) exchange cheques and other payment items that they have accepted.

In most cases, when a cheque is deposited at an FI, it is sent that evening to the nearest processing centre serving that FI. There, cheques are sorted according to the financial institution that holds the account of the cheque writer (i.e. the payor’s account). The cheques are then delivered to the processing centre serving the payor’s FI. This exchange, or "clearing", usually occurs the evening of the day the cheque was deposited. However, in some situations, such as deposits made late in the day, on the weekend or through an Automated Banking Machine, clearing may not occur until the evening of the next business day.

After clearing, the cheque must still be returned to the branch that holds the cheque writer’s account (or the unit of the FI that acts on behalf of the branch) to confirm that it can be honoured. Within Canada, this process generally takes from one to three business days. If the cheque cannot be honoured - for example, due to insufficient funds, a stop payment order or a forged signature - it will be returned to the branch that accepted it. The return voyage will also generally take from one to three days but could take longer in some circumstances. "


http://banking.about.com/od/checkingaccounts/a/hold.htm

"How Long are Holds?

Holding times will vary due to several factors. The main factor is the source of the check. For example, checks written by the US government might have a shorter hold – or none at all – because the bank assumes that the check will actually be paid. Personal checks and out-of-state checks can have longer hold periods.

Even though technology has given banks the ability to verify funds more easily, hold times still hover around 5-10 business days. "

[KotOD]

http://answers.yahoo.com/question/in...BG7&show=7

"How long can you hold on to a cheque before any bank refuses to accept it?"

"In theory a cheque would stay valid until you presented it for payment. When a cheque is issued the person writing it is obliged to have the funds in their bank account to cover it and, therefore, if you do not cash the cheque the funds should still be there to cover it. In practice banks normally honour cheques up to 6 months old after which they may be rejected and stamped 'Refer to Drawer'. Moral? Pay in a cheque as soon as possible!"

[FernTheBrute]

Hillarious post! And so true!

[KotOD]

"Why did the teller ask if my check was a payroll check?"

Banks will often waive any sort of a hold on a check if the depositor is a customer in good standing.

[cardcounter0]

[ QUOTE ]
"Why did the teller ask if my check was a payroll check?"

Banks will often waive any sort of a hold on a check if the depositor is a customer in good standing.

[/ QUOTE ]

When you hand a check to the bank, the first and about the only though in their mind is -- Will this check bounce?
Typically, Payroll Checks have a much lower percentage of being returned than other checks. So asking "What is this check for?" or "Is this for work?" is the teller's clumsy attempt to determine if it is a payroll check.

If it is an International Check (a check from a different country) it needs to be sent to [que scary music] "collections" [/que scary music]. This does not mean that Vinny and Vito are going to appear at your door to break your legs. International checks require special handling since only American banks participate in the Federal ACH system. So some extra steps are required for the bank to get it's money for an international check. As a result, a hold of longer duration is usually placed on an international check, unless the bank has a good history of these checks clearing with you.

[KotOD]

BUMP

[KotOD]

http://answers.yahoo.com/question/in...0121204AAq8JlW

How long does it take for a third-party check to clear at Bank of America?

"usually just a few days,,, at most about a week"

[TheDespot]

I've always used Neteller and such to cash out of online poker sites, so I was just wondering if checks from sites bear their logo or anything that may raise a problem with depositing them in a bank (in reference to the UIGE Act)? Thanks for the help in advance.

[cardcounter0]

There is nothing in the UIGE Act that pertains to logos on checks. When you deposit a check in the bank, they care about if it will clear, if the check is good. They do not care if it has pictures of kittens on it, or a picture of Santa Claus.

[TheDespot]

Well the logo would indicate it is from a poker site, which banks are forbidden from processing transactions for according to the Act. I was wondering if us depositing these checks would fall under the jurisdiction of the Act.