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WC MN | This is untrue - When a store cashier runs a check through their scanner, they are actually checking to see if you've written any bad checks at the business in the past. Currently there are no systems in place for banks to instantly clear checks from other financial institutions same day. Probably coming down the pipeline as ACH's can now clear same day. But there is always at least a day between when the Bank takes the check, sends through the fed, fed pulls money from other bank. If other bank returns the check NSF the Fed takes the money back out of the originating bank and the bank then takes the proceeds back out of your checking/savings etc.
Read up on Reg CC, there are multiple reason why holds are placed on deposits. In reality by day 3 the financial institution should know if the check was cleared, but there are other circumstances where a check can be returned later. Insurance checks can be notorious for coming back to the originating bank, most times they place stop pays on the check for whatever reason.
Edit to add: - meant to quote this post and musta hit the wrong button.
"Exactly a store cashier can instantly know if a check is good or not.
Banks are inherently looking to skim off customers. In today's electronic age this policy is outdated and ridiculous.
If the check and deposit system is this insecure in the first place then do something to cut out the frauds and abuse like mandatory 10 year prison sentences for those running all the check kiting schemes and scams.
Cheap credit truly has destroyed the world. HT KD"
Edited by TJWeber 9/3/2024 13:48
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Bank holds on deposits above $5525?
