Re:Knuth is no longer mailing out checks for $2.56
by randallsquared on Thursday October 30, 2008 @07:34PM
(#349397)
Well, in a sense you're right...
Checks usually "clear" in a day or two, but most banks have antiquated standards for how long they keep the funds on hold. My current bank keeps checks in my account uncleared for eight (8) business days (except for the first $100), and this policy means I never deposit checks -- instead I go to the bank it was drawn on and cash it. Bank tellers, whom you would think would be used to large stacks of cash, still seem to get flustered when you present a single-digit-thousands check and ask for cash. Dunno why.
Anyway, the biggest problem with the checking system is that banks have six months to bounce a check, which means that checks you've forgotten about for months can suddenly make your bank balance go negative. Fun. The second biggest problem is that there's no real security in the system at all.., people jealously guard their debit card PINs, but will happily write a check which is effectively a license to take money, of any amount, out of the account it's drawn on. All someone has to do is use the routing and account numbers on the bottom of the check for electronic ACH.
Basically, checks are a bad idea today, and you should probably avoid using them when possible.
Checks usually "clear" in a day or two, but most banks have antiquated standards for how long they keep the funds on hold. My current bank keeps checks in my account uncleared for eight (8) business days (except for the first $100), and this policy means I never deposit checks -- instead I go to the bank it was drawn on and cash it. Bank tellers, whom you would think would be used to large stacks of cash, still seem to get flustered when you present a single-digit-thousands check and ask for cash. Dunno why.
Anyway, the biggest problem with the checking system is that banks have six months to bounce a check, which means that checks you've forgotten about for months can suddenly make your bank balance go negative. Fun. The second biggest problem is that there's no real security in the system at all.., people jealously guard their debit card PINs, but will happily write a check which is effectively a license to take money, of any amount, out of the account it's drawn on. All someone has to do is use the routing and account numbers on the bottom of the check for electronic ACH.
Basically, checks are a bad idea today, and you should probably avoid using them when possible.