Chase Billpay - checks "cleared"


P

ps56k

I've started using Chase Billpay
to send EFT/ACH payments.

As an interesting experiment,
I wanted to see how a physical check was handled,
as our local town's utility is not setup for ACH payment.
So, I sent a small payment to myself as a test.

Interestly, the transaction came across today via Quicken download
as "cleared" when the check was mailed,
and not when the check will be future deposited.... if ever.
That was a surprise.

It would appear that ALL Chase Billpay transactions
are treated the same as to when funds are withdrawn from the account,
regardless of how they might be delivered.
The scary part is, of course, what happens to that physical check.
 
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A

Arnie Goetchius

ps56k said:
I've started using Chase Billpay
to send EFT/ACH payments.

As an interesting experiment,
I wanted to see how a physical check was handled,
as our local town's utility is not setup for ACH payment.
So, I sent a small payment to myself as a test.

Interestly, the transaction came across today via Quicken download
as "cleared" when the check was mailed,
and not when the check will be future deposited.... if ever.
That was a surprise.

It would appear that ALL Chase Billpay transactions
are treated the same as to when funds are withdrawn from the account,
regardless of how they might be delivered.
The scary part is, of course, what happens to that physical check.
Same thing at Wells Fargu. Wells Fargo debits account when the bill pay
is issued and it shows up in Quicken on the next download even though
the physical check may take up to 5 days to arrive.
 
P

ps56k

I don't think that I will use the Chase Billpay physical check creation
feature...
Too afraid of the "clearing" when created/written vs when deposited as
normal.

I'll just write a normal check for those places
that currently can't accept EFT/ACH transactions -
like our town's public works utility billing.
 
S

Sharxster

ps56k said:
I don't think that I will use the Chase Billpay physical check
creation feature...
Too afraid of the "clearing" when created/written vs when
deposited as normal.

I'll just write a normal check for those places
that currently can't accept EFT/ACH transactions -
like our town's public works utility billing.
Your town's officials need a boot in the arse--tell for them to get
with the 21st century!
 
K

Ken Blake, MVP

Same thing at Wells Fargu. Wells Fargo debits account when the bill pay
is issued and it shows up in Quicken on the next download even though
the physical check may take up to 5 days to arrive.



I've never bothered to look into it, but I believe the same is true of
my bank, Bank America. Anyone know for sure?
 
M

Marc Auslander

I use Wells Fargo, grandfathered from Wachovia. So using Quicken to
pay bills is still free.

When you pay a bill on one, you are debitted immediately, as is
described here. But if you initiate the check via quicken, you are
charged on the delivery day. That's not to say the check has actually
been delievered and cashed if the payee doesn't take EFT, but at least
the money comes out at the right time!
 
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S

Scott W

So what happens if the check is lost & never cashed? Bank gets to keep the
funds?
Looks that way.

"Marc Auslander" wrote in message

I use Wells Fargo, grandfathered from Wachovia. So using Quicken to
pay bills is still free.

When you pay a bill on one, you are debitted immediately, as is
described here. But if you initiate the check via quicken, you are
charged on the delivery day. That's not to say the check has actually
been delievered and cashed if the payee doesn't take EFT, but at least
the money comes out at the right time!
 
M

Mike Blake-Knox

So what happens if the check is lost & never cashed? Bank gets to keep the
funds?
Looks that way.
I had a bit of fun when a vendor returned the (uncashed) check to me a month
or so ago. I'm using Wells Fargo and had a bit of a run-around while they
were trying to find out how to get the funds back into the account.
Eventually, I was told to endorse the check "Not used for intended purpose",
sign it and deposit it back to the account. I did that and found that my
drive-through deposit took forever.

It turned out that my branch was calling around internally to find out how to
handle the deposit. Eventually they found it should be deposited "normally".

Mike
 
A

Arthur Conan Doyle

Mike Blake-Knox said:
I had a bit of fun when a vendor returned the (uncashed) check to me a month
or so ago. I'm using Wells Fargo and had a bit of a run-around while they
were trying to find out how to get the funds back into the account.
Eventually, I was told to endorse the check "Not used for intended purpose",
sign it and deposit it back to the account. I did that and found that my
drive-through deposit took forever.

It turned out that my branch was calling around internally to find out how to
handle the deposit. Eventually they found it should be deposited "normally".
Fortunately, not every bank with a bill pay option operates that way. I find
removing the funds when a check is written to be a bit sleezy, although I can
see why the banks do it. From an individual user perspective, it shouldn't make
a whole lot of difference - you've lost use of the funds once the payment is
committed. From a large bank perspective, they get the float until the check is
cashed. Over a large number of accounts, that will be a lot of money.

I prefer the way my bank operates. The funds leave your account the day they
post to the payee. If it can be done electronically, then its on the payment
date. If the bank has to cut a check, the funds don't get removed until the
check is presented for payment.
 
K

Ken

On 1/17/2014 10:45 AM, Ken Blake, MVP wrote:
-------snippage
I've never bothered to look into it, but I believe the same is true of
my bank, Bank America. Anyone know for sure?
Over the years:
Wachovia used to debit the electronic check when it was presented to them.
TD Bank started off by debiting the account when the check was written.
I asked a picky question or two of them, "What happens if the receiver
fails to deposit the check?" Their answer was along the lines of "Maybe
several months or a year later we'll credit your account back." I didn't
like it, but it was "free" bill pay, so what the heck.
TD Bank switched to a different, non direct-connect system early in
2013. Their new, on-line only bill pay debits one's account when the
check is returned, not when written.
Now with PNC Bank. They still support direct-connect bill pay without an
additional charge. They debit the checking account when the check is
cleared, not when written.

So: The answer seems to be all over the place.

Ken Becker
 
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P

ps56k

ps56k said:
I've started using Chase Billpay
to send EFT/ACH payments.

As an interesting experiment,
I wanted to see how a physical check was handled,
as our local town's utility is not setup for ACH payment.
So, I sent a small payment to myself as a test.

Interestly, the transaction came across today via Quicken download
as "cleared" when the check was mailed,
and not when the check will be future deposited.... if ever.
That was a surprise.

It would appear that ALL Chase Billpay transactions
are treated the same as to when funds are withdrawn from the account,
regardless of how they might be delivered.
The scary part is, of course, what happens to that physical check.

--
Received the check in the mail today.
It's your normal computer generated check -
with any manually entered "account number" at the top.
I deposited it at the local ATM, and will see what happens next.
 
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