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Why do Cheques take 5+ bloody days to clear? Can someone perhaps from
the banking industry explain this to me? I mean - FFS! Either the person
who wrote the cheque has the money or he doesn't. Why does it take
SOOOOO LOOOOONG to check this and then transfer the money or decline?
Commonsense tells me it should only take a couple days at the MOST.

I'd love it if someone can justify this for me. I'll learn to accept it
if there are actually sensible reasons why (though I'm hard pressed to
imagine what these can be), but FIVE days? Are banks still using carrier
pigeons?

Regards,
Jamie Kahn Genet
--
If you're not part of the solution, you're part of the precipitate.

Jamie Kahn Genet wrote:
> Why do Cheques take 5+ bloody days to clear? Can someone perhaps from
> the banking industry explain this to me? I mean - FFS! Either the person
> who wrote the cheque has the money or he doesn't. Why does it take
> SOOOOO LOOOOONG to check this and then transfer the money or decline?
> Commonsense tells me it should only take a couple days at the MOST.
>
> I'd love it if someone can justify this for me. I'll learn to accept it
> if there are actually sensible reasons why (though I'm hard pressed to
> imagine what these can be), but FIVE days? Are banks still using carrier
> pigeons?
>
> Regards,
> Jamie Kahn Genet
So they have use of your money for five days

On Mon, 11 Sep 2006 05:29:38 +1200, Jamie Kahn Genet wrote:

> Why do Cheques take 5+ bloody days to clear? Can someone perhaps from
> the banking industry explain this to me? I mean - FFS! Either the person
> who wrote the cheque has the money or he doesn't.

Historically the cheque had to be physically taken to Databank for
processing, and then had to be physically taken to the branch where the
a/c was domiciled in order to verify the signature.

It is not sufficient to see if the person has the money - the bank needed
to verify that the person who wrote the cheque really was the person whose
a/c the cheque was drawn on.

Of course, IIRC, these days the bank no longer checks signature on cheques
under a certain dollar value. (can't remember what that dollar value is)


Ma Hogany

--
Q: How do I make Windows(TM) go faster?
A: Throw it harder...

MaHogany wrote:
> On Mon, 11 Sep 2006 05:29:38 +1200, Jamie Kahn Genet wrote:
>
>
>>Why do Cheques take 5+ bloody days to clear? Can someone perhaps from
>>the banking industry explain this to me? I mean - FFS! Either the person
>>who wrote the cheque has the money or he doesn't.
>
>
> Historically the cheque had to be physically taken to Databank for
> processing, and then had to be physically taken to the branch where the
> a/c was domiciled in order to verify the signature.
>
> It is not sufficient to see if the person has the money - the bank needed
> to verify that the person who wrote the cheque really was the person whose
> a/c the cheque was drawn on.
>
> Of course, IIRC, these days the bank no longer checks signature on cheques
> under a certain dollar value. (can't remember what that dollar value is)
>
>
> Ma Hogany
>

Millions of cheques used to get written every week. The banks never
checked the signatures. The document itself got sent to the home bank
eventually, but the transaction was processed overnight at Databank.

Jerry wrote:
> MaHogany wrote:
>
> Millions of cheques used to get written every week. The banks never
> checked the signatures. The document itself got sent to the home bank
> eventually, but the transaction was processed overnight at Databank.

Even 25 years ago, banks scrutinised every cheque and 'bounced' them
for trivial things like forgetting to write the word 'dollars' or
forgetting the date. AFAIK they checked all signatures, although it is
possible at that time they only checked signatures on a portion of
cheques.

They then realised that it was more economic to dispense with this and
bear any resulting losses. This is also since a court will not AFAIK
invalidate a cheque for drafting errors (even including post dating)
where the transaction was otherwise valid.

The most awkward time is when doing two large back to back cheque
transactions on your cheque account. You may find yourself locked out
of EFT-POS and ATM's for several days. One should withdraw a weeks
need of cash prior to such a trandaction pair and use your credit card
where possible. Otherwise ask the other party for a bank cheque or a
direct credit into yoiur bank account.

> Even 25 years ago, banks scrutinised every cheque and 'bounced' them
> for trivial things like forgetting to write the word 'dollars' or
> forgetting the date. AFAIK they checked all signatures, although it is
> possible at that time they only checked signatures on a portion of
> cheques.
>
> They then realised that it was more economic to dispense with this and
> bear any resulting losses. This is also since a court will not AFAIK
> invalidate a cheque for drafting errors (even including post dating)
> where the transaction was otherwise valid.
>
> The most awkward time is when doing two large back to back cheque
> transactions on your cheque account. You may find yourself locked out
> of EFT-POS and ATM's for several days. One should withdraw a weeks
> need of cash prior to such a trandaction pair and use your credit card
> where possible. Otherwise ask the other party for a bank cheque or a
> direct credit into yoiur bank account.
>

note - I spent 5 years working at Databank/EDS.

1. EDS still processes the cheques.
2. Signatures are not checked unless the cheque is disputed.
3. The five days is now purely so the bank can make a bit more out of
your money, two days could be justified in todays environment, but
certainly not five.

Tony < > wrote:

> > Even 25 years ago, banks scrutinised every cheque and 'bounced' them
> > for trivial things like forgetting to write the word 'dollars' or
> > forgetting the date. AFAIK they checked all signatures, although it is
> > possible at that time they only checked signatures on a portion of
> > cheques.
> >
> > They then realised that it was more economic to dispense with this and
> > bear any resulting losses. This is also since a court will not AFAIK
> > invalidate a cheque for drafting errors (even including post dating)
> > where the transaction was otherwise valid.
> >
> > The most awkward time is when doing two large back to back cheque
> > transactions on your cheque account. You may find yourself locked out
> > of EFT-POS and ATM's for several days. One should withdraw a weeks
> > need of cash prior to such a trandaction pair and use your credit card
> > where possible. Otherwise ask the other party for a bank cheque or a
> > direct credit into yoiur bank account.
> >
>
> note - I spent 5 years working at Databank/EDS.
>
> 1. EDS still processes the cheques.
> 2. Signatures are not checked unless the cheque is disputed.
> 3. The five days is now purely so the bank can make a bit more out of
> your money, two days could be justified in todays environment, but
> certainly not five.

Ok, I banked a cheque on the 6th. I just rang Kiwibank - they tell me it
is set to clear on the 13th. What RILES me is they KNOW the date. They
know every f**king thing they need to know in order to process the SOB.
But nope - still got to wait five WORKING days. F**k me - even regular
transactions are actioned by my bank during weekends nowadays! But still
not f**king cheques!

Oh yeah - I can still pay $25 I think it is to get a 'fast answer' on a
cheque LMAO. Still not guarrenteed to happen faster though!
Unbe-f**king-lievable.

*grinds teeth*

Arseholes.

Regards,
Jamie Kahn Genet
--
If you're not part of the solution, you're part of the precipitate.

Jamie Kahn Genet wrote:
> Tony < > wrote:
>
>>> Even 25 years ago, banks scrutinised every cheque and 'bounced' them
>>> for trivial things like forgetting to write the word 'dollars' or
>>> forgetting the date. AFAIK they checked all signatures, although it is
>>> possible at that time they only checked signatures on a portion of
>>> cheques.
>>>
>>> They then realised that it was more economic to dispense with this and
>>> bear any resulting losses. This is also since a court will not AFAIK
>>> invalidate a cheque for drafting errors (even including post dating)
>>> where the transaction was otherwise valid.
>>>
>>> The most awkward time is when doing two large back to back cheque
>>> transactions on your cheque account. You may find yourself locked out
>>> of EFT-POS and ATM's for several days. One should withdraw a weeks
>>> need of cash prior to such a trandaction pair and use your credit card
>>> where possible. Otherwise ask the other party for a bank cheque or a
>>> direct credit into yoiur bank account.
>>>
>> note - I spent 5 years working at Databank/EDS.
>>
>> 1. EDS still processes the cheques.
>> 2. Signatures are not checked unless the cheque is disputed.
>> 3. The five days is now purely so the bank can make a bit more out of
>> your money, two days could be justified in todays environment, but
>> certainly not five.
>
> Ok, I banked a cheque on the 6th. I just rang Kiwibank - they tell me it
> is set to clear on the 13th. What RILES me is they KNOW the date. They
> know every f**king thing they need to know in order to process the SOB.
> But nope - still got to wait five WORKING days. F**k me - even regular
> transactions are actioned by my bank during weekends nowadays! But still
> not f**king cheques!
>
> Oh yeah - I can still pay $25 I think it is to get a 'fast answer' on a
> cheque LMAO. Still not guarrenteed to happen faster though!
> Unbe-f**king-lievable.
>
> *grinds teeth*
>
> Arseholes.
>

You might hav done better to have your money sent to you by electronic
transfer or by cashiers' cheque (bank cheque, whatever it's called here).

I have the impression that banks would rather people didn't write
cheques, and their charges reflect that fact.

It's still better than in some other countries: in the UK, if I go to a
branch of your bank and pay cash money into your account, you still
won't be able to draw it until three working days after I paid it in
(not counting the day I paid it in).

Now that sucks.

Philip

Tony wrote:

>
> note - I spent 5 years working at Databank/EDS.
>
> 1. EDS still processes the cheques.
> 2. Signatures are not checked unless the cheque is disputed.
> 3. The five days is now purely so the bank can make a bit more out of
> your money, two days could be justified in todays environment, but
> certainly not five.

I think that banks still reserve the right to manually check cheques
and try and contact customers in the event of problems before
'bouncing' cheques and a five day 'window' does facilitate this.
However I would concede in more recent times banks would make such
decisions more quickly and more ruthlessly than in the past.

This is also a matter where banks should use common sense and build
this into their computer systems. For a properly run account the risk
to the bank is minimal by allowing routine ATM withdrawals and EFT-POS
transactions in the face of an uncleared cheque.

In article <newscache$re6e5j$wqm$>,
says...
> > Even 25 years ago, banks scrutinised every cheque and 'bounced' them
> > for trivial things like forgetting to write the word 'dollars' or
> > forgetting the date. AFAIK they checked all signatures, although it is
> > possible at that time they only checked signatures on a portion of
> > cheques.
> >
> > They then realised that it was more economic to dispense with this and
> > bear any resulting losses. This is also since a court will not AFAIK
> > invalidate a cheque for drafting errors (even including post dating)
> > where the transaction was otherwise valid.
> >
> > The most awkward time is when doing two large back to back cheque
> > transactions on your cheque account. You may find yourself locked out
> > of EFT-POS and ATM's for several days. One should withdraw a weeks
> > need of cash prior to such a trandaction pair and use your credit card
> > where possible. Otherwise ask the other party for a bank cheque or a
> > direct credit into yoiur bank account.
> >
>
> note - I spent 5 years working at Databank/EDS.
>
> 1. EDS still processes the cheques.
> 2. Signatures are not checked unless the cheque is disputed.
> 3. The five days is now purely so the bank can make a bit more out of
> your money, two days could be justified in todays environment, but
> certainly not five.

But even *bank* cheques take five days to clear. Why's that?

--
Duncan