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Check cleared before setup date!

 
 
DotCom2
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      06-14-2011, 02:22 PM
I setup an online check to be paid to my health ins. for $1680.00 for this
Wed. the 15th.
However it cleared my bank account this Monday the 13th! Two days early!
It did not cause my account to be over drafted but I could see the potential
that it certainly could have.
If I recall, this is not the first time this has happened but I never really
worried about it until I see know that it can happen at anytime without my
knowledge. I pay my bills online through Quicken on my Wells Fargo account.
Who is at fault here? Quicken or Wells Fargo? And how is that even legal
for a check to clear before the date I put on it? I know you can't cash a
paper check before the date stated on it so how is this possible on an
online check?


 
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Han
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      06-14-2011, 03:07 PM
"DotCom2" <(E-Mail Removed)> wrote in news:it7qvt$38r$(E-Mail Removed):

> I setup an online check to be paid to my health ins. for $1680.00 for
> this Wed. the 15th.
> However it cleared my bank account this Monday the 13th! Two days
> early! It did not cause my account to be over drafted but I could see
> the potential that it certainly could have.
> If I recall, this is not the first time this has happened but I never
> really worried about it until I see know that it can happen at anytime
> without my knowledge. I pay my bills online through Quicken on my
> Wells Fargo account. Who is at fault here? Quicken or Wells Fargo?
> And how is that even legal for a check to clear before the date I put
> on it? I know you can't cash a paper check before the date stated on
> it so how is this possible on an online check?


I believe this occurs because the intent is to have the check (or EFT)
show up on the date you told Quicken to do this. In other words, in
order to be sure the "check" gets there the 15th, Quicken tells your bank
to take the money out of your account on the 13th, so that there are 2
days to make sure the check/EFT gets there on time. In the case of
actual checks (not EFTs) by USPS snailmail, the lead time is probably
more like 5 business days, not 2.

To avoid this, I have authorized utilities etc. to "pull" the money out
of my checking account on the payment due date. That way, the payee is
responsible for getting the money on time, and I get to use the "float".
I know some people are hesitant to do this, but anytime you have sent
them an actualcheck,they have all the info on your checking account
already.

--
Best regards
Han
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DotCom2
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      06-14-2011, 04:07 PM
I *think* I understand what you are saying, but can it ever be more than two
days?
Because if so that can be pretty scary.

"Han" wrote in message news:Xns9F047129C748Bikkezelf@216.151.153.169...

"DotCom2" <(E-Mail Removed)> wrote in news:it7qvt$38r$(E-Mail Removed):

> I setup an online check to be paid to my health ins. for $1680.00 for
> this Wed. the 15th.
> However it cleared my bank account this Monday the 13th! Two days
> early! It did not cause my account to be over drafted but I could see
> the potential that it certainly could have.
> If I recall, this is not the first time this has happened but I never
> really worried about it until I see know that it can happen at anytime
> without my knowledge. I pay my bills online through Quicken on my
> Wells Fargo account. Who is at fault here? Quicken or Wells Fargo?
> And how is that even legal for a check to clear before the date I put
> on it? I know you can't cash a paper check before the date stated on
> it so how is this possible on an online check?


I believe this occurs because the intent is to have the check (or EFT)
show up on the date you told Quicken to do this. In other words, in
order to be sure the "check" gets there the 15th, Quicken tells your bank
to take the money out of your account on the 13th, so that there are 2
days to make sure the check/EFT gets there on time. In the case of
actual checks (not EFTs) by USPS snailmail, the lead time is probably
more like 5 business days, not 2.

To avoid this, I have authorized utilities etc. to "pull" the money out
of my checking account on the payment due date. That way, the payee is
responsible for getting the money on time, and I get to use the "float".
I know some people are hesitant to do this, but anytime you have sent
them an actualcheck,they have all the info on your checking account
already.

--
Best regards
Han
email address is invalid

 
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Han
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      06-14-2011, 05:06 PM
"DotCom2" <(E-Mail Removed)> wrote in news:it813v$efe$(E-Mail Removed):

> I *think* I understand what you are saying, but can it ever be more
> than two days?
> Because if so that can be pretty scary.


You'll have to read what it says when you enter a transaction to be paid to
an individual of whom you do not know his bank routing number and account
number. I do believe it can be up to 5 days in that case. I believe the 2
days is only for transactions made by EFT.
--
Best regards
Han
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DotCom2
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      06-14-2011, 05:13 PM
OK thank you very much

"Han" wrote in message news:Xns9F04855D67FAEikkezelf@216.151.153.161...

"DotCom2" <(E-Mail Removed)> wrote in news:it813v$efe$(E-Mail Removed):

> I *think* I understand what you are saying, but can it ever be more
> than two days?
> Because if so that can be pretty scary.


You'll have to read what it says when you enter a transaction to be paid to
an individual of whom you do not know his bank routing number and account
number. I do believe it can be up to 5 days in that case. I believe the 2
days is only for transactions made by EFT.
--
Best regards
Han
email address is invalid

 
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John Pollard
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      06-14-2011, 09:00 PM
"DotCom2" wrote

> OK thank you very much


Not all billpayers handle this the same way.

I use BofA-All Other States for most of my billpay transactions. When I
schedule an online bill payment at BofA, I am telling BofA the date I want
the payment delivered. They do not take the money from my account until
the delivery date ... even if the payee gets a check and doesn't cash the
check for a month after the delivery date. I consider that a fair
arrangement.

The only affect the lead time has is that I can't schedule a payment to be
delivered in two days (for example) if the payee must be paid by check
(for which BofA requires 4 days lead time). EFT payments usually take only
1 day lead time.

--

John Pollard
news://<YOUR-NNTP-NEWSERVER-HERE>/alt.comp.software.financial.quicken
Your source of user-to-user Quicken help


 
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DotCom2
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      06-15-2011, 12:32 AM
I am going to call Wells Fargo tomorrow and find out why this was paid 2
days sooner than I set it up for.
Thank you for your response.

"John Pollard" wrote in message news:it8i4s$66u$(E-Mail Removed)...

"DotCom2" wrote

> OK thank you very much


Not all billpayers handle this the same way.

I use BofA-All Other States for most of my billpay transactions. When I
schedule an online bill payment at BofA, I am telling BofA the date I want
the payment delivered. They do not take the money from my account until
the delivery date ... even if the payee gets a check and doesn't cash the
check for a month after the delivery date. I consider that a fair
arrangement.

The only affect the lead time has is that I can't schedule a payment to be
delivered in two days (for example) if the payee must be paid by check
(for which BofA requires 4 days lead time). EFT payments usually take only
1 day lead time.

--

John Pollard
news://<YOUR-NNTP-NEWSERVER-HERE>/alt.comp.software.financial.quicken
Your source of user-to-user Quicken help

 
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Arnie Goetchius
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      06-16-2011, 10:29 PM
DotCom2 wrote:
> I setup an online check to be paid to my health ins. for $1680.00 for
> this Wed. the 15th.
> However it cleared my bank account this Monday the 13th! Two days early!
> It did not cause my account to be over drafted but I could see the
> potential that it certainly could have.
>

If I setup an online check with Wachovia for the 15th, that is usually
the date my account is debited. However, when I transfer to Wells Fargo
in the next month, Wells Fargo stated the following on page 12 of the
"Transition Guide", under Online Bill Pay:

"At Wells Fargo, funds to pay your bills will be withdrawn from your
account up to five business days earlier than they were at Wachovia".
Sounds like your lucky if they only debited your account 2 days early
when they could have debited it up to 5 business days early.






 
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nobody@nada.com
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      06-17-2011, 06:17 PM
On Thu, 16 Jun 2011 18:29:05 -0400, Arnie Goetchius
<(E-Mail Removed)> wrote:

>DotCom2 wrote:
>> I setup an online check to be paid to my health ins. for $1680.00 for
>> this Wed. the 15th.
>> However it cleared my bank account this Monday the 13th! Two days early!
>> It did not cause my account to be over drafted but I could see the
>> potential that it certainly could have.
>>

>If I setup an online check with Wachovia for the 15th, that is usually
>the date my account is debited. However, when I transfer to Wells Fargo
>in the next month, Wells Fargo stated the following on page 12 of the
>"Transition Guide", under Online Bill Pay:
>
>"At Wells Fargo, funds to pay your bills will be withdrawn from your
>account up to five business days earlier than they were at Wachovia".
>Sounds like your lucky if they only debited your account 2 days early
>when they could have debited it up to 5 business days early.
>
>
>

I just did this conversion yesterday. I'll keep an eye out for the
timing changes. I'm interested in whether Quicken bill pay will use
this to change to allowed scheduled date.

I wonder what their reason is for this change? Don't all these banks
use the same service for the Quicken bill pay?
>
>

 
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Arnie Goetchius
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      06-17-2011, 06:59 PM
(E-Mail Removed) wrote:
> On Thu, 16 Jun 2011 18:29:05 -0400, Arnie Goetchius
> <(E-Mail Removed)> wrote:
>
>> DotCom2 wrote:
>>> I setup an online check to be paid to my health ins. for $1680.00 for
>>> this Wed. the 15th.
>>> However it cleared my bank account this Monday the 13th! Two days early!
>>> It did not cause my account to be over drafted but I could see the
>>> potential that it certainly could have.
>>>

>> If I setup an online check with Wachovia for the 15th, that is usually
>> the date my account is debited. However, when I transfer to Wells Fargo
>> in the next month, Wells Fargo stated the following on page 12 of the
>> "Transition Guide", under Online Bill Pay:
>>
>> "At Wells Fargo, funds to pay your bills will be withdrawn from your
>> account up to five business days earlier than they were at Wachovia".
>> Sounds like your lucky if they only debited your account 2 days early
>> when they could have debited it up to 5 business days early.
>>
>>
>>

> I just did this conversion yesterday. I'll keep an eye out for the
> timing changes. I'm interested in whether Quicken bill pay will use
> this to change to allowed scheduled date.
>
> I wonder what their reason is for this change? Don't all these banks
> use the same service for the Quicken bill pay?
>>

I do not know. Perhaps each bank that uses Quicken Bill Pay can tweak
the time when funds can be withdrawn?


 
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