Electronic checks?

ivykeep · 11-07-2009, 12:57 PM

Any idea what the bit about the electronic transfers on the order forms:

Quote:

† When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic funds transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic funds transfer, funds may be withdrawn from your account as soon as the same day your payment is received, and you will not receive your check back from your financial institution.

Is there some other way to handle check payments other than taking them to my bank?

NooraK · 11-07-2009, 02:10 PM

My best guess would be that it's there because all banks can now process checks electronically, and I think the law says we're supposed to let the customer know.

cathyskitchen · 11-07-2009, 02:57 PM

Noora's right - it has nothing to do with how we cash or deposit people's checks - it's how the banks "electronically" transfer the cash from the customer's account to ours, and it's to let them know that they can't "float" checks like they used to (it used to take 3-5 days to clear, now it can happen instantly).

esavvymom · 11-08-2009, 10:43 AM

Actually, I always thought it meant that so many stores/retailers now can turn your check into an electronic check -basically like using your debit card. They hit your account right then and there instead of having to process it through a bank. You might as well be using a debit card. I've seen vendors at the mall do this with my check...they scan it through a machine....then stamp it and hand it right back to me! I thought, well, shoot, I could have saved a check and given you a debit card!

So I'd imagine they are doing the same thing when they receive payments via check. They aren't going to process them through the bank channels so your bank may not get it back. (Like any bank does THAT anymore anyway? mine are scanned at one bank, and I'm just out of luck at the other. I have to pay for digital copies).

cathyskitchen · 11-08-2009, 12:14 PM

Yep, that's correct, Bobbi. Except for us, we don't have those fancy "scanners", so it'll turn into an "electronic check" when we deposit it or cash it at our bank. There is no longer a waiting period for a "check to clear".

jwpamp · 11-08-2009, 12:45 PM

Wouldn't it be cool if sometime in the future we could simply enter their info on PP3 and they take it out of their bank for us? Wow, no more bounced checks....hooray!!

Ok, wishful thinking!

11-07-2009, 02:10 PM	#2
NooraK Location: Georgia Posts: 3,560 Best Show: 1060 Experience: 4 # of Shows: 80 My Mood:	Re: Electronic checks? My best guess would be that it's there because all banks can now process checks electronically, and I think the law says we're supposed to let the customer know. Last edited by NooraK; 11-07-2009 at 02:31 PM..

11-07-2009, 02:57 PM	#3
cathyskitchen Location: Phila, PA suburbs Posts: 2,688 Best Show: 1717 Experience: 7 # of Shows: 286 My Mood:	Re: Electronic checks? Noora's right - it has nothing to do with how we cash or deposit people's checks - it's how the banks "electronically" transfer the cash from the customer's account to ours, and it's to let them know that they can't "float" checks like they used to (it used to take 3-5 days to clear, now it can happen instantly).

11-08-2009, 10:43 AM	#4
esavvymom Location: NC Posts: 3,740 Best Show: 768 Experience: 2 # of Shows: My Mood:	Re: Electronic checks? Actually, I always thought it meant that so many stores/retailers now can turn your check into an electronic check -basically like using your debit card. They hit your account right then and there instead of having to process it through a bank. You might as well be using a debit card. I've seen vendors at the mall do this with my check...they scan it through a machine....then stamp it and hand it right back to me! I thought, well, shoot, I could have saved a check and given you a debit card! So I'd imagine they are doing the same thing when they receive payments via check. They aren't going to process them through the bank channels so your bank may not get it back. (Like any bank does THAT anymore anyway? mine are scanned at one bank, and I'm just out of luck at the other. I have to pay for digital copies).

11-08-2009, 12:14 PM	#5
cathyskitchen Location: Phila, PA suburbs Posts: 2,688 Best Show: 1717 Experience: 7 # of Shows: 286 My Mood:	Re: Electronic checks? Yep, that's correct, Bobbi. Except for us, we don't have those fancy "scanners", so it'll turn into an "electronic check" when we deposit it or cash it at our bank. There is no longer a waiting period for a "check to clear".

11-08-2009, 12:45 PM	#6
jwpamp Location: IN Posts: 1,506 Best Show: 4102 Experience: 4 # of Shows: 523	Re: Electronic checks? Wouldn't it be cool if sometime in the future we could simply enter their info on PP3 and they take it out of their bank for us? Wow, no more bounced checks....hooray!! Ok, wishful thinking!

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