| |
| |
|
Personal Finance Information |
|
|
|
How Electronic Checks Work - Will Paper Checks Eventually Go Away?
Traditional checks probably won't disappear anytime soon, but processing checks electronically is sure to continue! Have you ever been asked to fill out your account and routing number when paying for something online or over the phone - or have you provided a paper check to pay for something and it is given back to you after it is run through a machine? Did you scratch your head like I did the first time that happened? Here is how electronic check conversion works. Instead of writing out a check the old-fashioned way, the new way of using checks use digital signatures for signing and endorsing and have digital certificates to authenticate the bank account. These e-checks are sent either by direct transmission using telephone lines or by public networks such as the Internet. The "endorsed" e-check with an electronic signature is then sent over the internet to the payee's bank for deposit. Why are companies using electronic checks, you ask? Well, more stores are using e-checks because they work in the same way as traditional checks, and require very little "public" education on the process. Secondly, they are more cost effective, especially for corporate markets. And finally, they can be cleared easier than traditional checks. What Does it Mean to Me that Companies are Switching Over to E-Checks? A downside is that there is little or no "float" on your check. Basically, if you were to write a check today, you need funds in your account at the time you write your check to cover the payment. If funds are not available, the check may bounce and a fee may be assessed by the business. It has been easy to get into the habit of writing out a check right before pay day, knowing that the check would not clear immediately. With the emergence of electronic check conversion, that reasoning no longer is true and it can easily mean trouble. Who Uses Electronic Checks and How do I Know? Everyone from gas stations to restaurants and internet websites may use electronic checks, and to know for sure, you must look for a notice. By law, you must receive notice that your check has been processed electronically. Notice can be given in the following ways:
Do I Get My Check Back and Will the Payment be Shown on My Monthly Statement? Your bank may be unable to give you a copy of your checks, so it is important to keep records of the checks written out - duplicate checks are a great solution to this dilemma. If you run into a bind and need a copy of a check written to a merchant, check with that business, they may be able to provide it to you. You payment must be shown on your monthly bank statement. It should include the name of the business, the payment amount and the date the payment was electronically transferred from your account. What if There is an Error on Your Account or Unauthorized Transactions? Be in the habit of reviewing your account regularly for errors. Did two payments go through instead of one? Were you charged the wrong amount? By law, you have 60 days from the date your statement was sent to you to notify your financial institution of any errors. Your bank may take up to 45 days from when you notify them to investigate the issue. Normally, your bank will credit your account while the investigation occurs. Robb Ksiazek is a successful author and publisher for Checks-4U.com. He has researched and written hundreds of articles and can simplify your online search by recommending merchants for the best value and selections in business or personal checks, address labels, rubber stamps and envelopes.
MORE RESOURCES:
Personal-Finance - Google News |
|
|
|
RELATED ARTICLES
Strategies for Success Holy Shenanigans! More STUFF?Loosing one's business due to lack of personal control is a sad thing. I've watched many people do just exactly that. How You Feel Affects How You Shop & How Much You Spend Have you ever stopped to think about how your "mood" affects the way you shop, not to mention the amount you spend? Think about it.If you want to save a lot of money, avoid shopping whenever you are in one of these moods:DEPRESSED, UPSET, or ANGRYIt's very dangerous for your pocketbook to shop when you're either depressed, upset or angry. Family Money Management: The Importance of Agreement Are you having problems with debt? Are you afraid to answer the phone because it may be an angry creditor calling? Do you have problems getting from one paycheck to the next? The simple answer is that you need to budget. But for that budget to work, both you and your spouse need to be in total agreement. One Income Source Is Not Enough! My personal opinion is that in today's new economy, it is wise to have multiple income streams. Reliance on one income source poses a risk to individuals, entrepreneurs, and even large corporations. Saving Money - The Magic 20 Percent Saving money is not easy and is made more difficult if you have a short-term outlook regarding your personal finances. If, like many people, you are living from one pay cheque to the next, it is difficult to put some money aside for a rainy day or for a summer holiday. How to Save for A Down Payment Saving for a Down Payment is hard work, so it's a good idea to really want to own your own home by the time you begin your Savings Account. It's difficult to turn down a weekend in the Bahamas (or Downtown at the Clubs!) when you don't have a definite goal. Do You Really Need the Power of Money Management Software? I have been a loyal user of Quicken(R) for more years than I can remember. But a conversation the other day with my youngest son started me wondering whether or not I really need money management software. Bankruptcy Laws Get Tougher - More Expensive If you've been thinking about filing for bankruptcy, your best bet might be to file now.A new bankruptcy law takes effect in November that will make it harder and more expensive for most families to file for bankruptcy and discharge their debts. Saving Money On Gasoline For Your Automobile The gas that we fill our tanks with every week adds up to be quite an expensive bill over the months and years. Thirty dollars a week in gas adds up to over $1500 a year. Affording a Home Can you really afford a house? If so, how much house can you afford? To determine this answer will take serious financial planning, and the best time to start is at least six months before buying the home.Although buying a new home may seem like an American Dream or romantic venture, the reality is that the house you can afford depends on your current income and debt obligations. Basic Bank Accounts Failing the Basic Needs of Consumers The lists of bank and savings accounts that are available to most people are bewildering. A quick look at a comparison site like Moneynet or Moneyfacts will reveal thousands of different products. Understanding Your Finances Can Give You Power And Choice What is finance and what do you need to know? Finance can mean different things. It may refer to your personal financial situation. Top 10+ Ways to Jumpstart your New Year's Finances! Of course, these don't have to be done in any particular order! Just pick one or two that particularly apply to your situation. * Create your 2005 filing system. Know Thy Finances The first step to financial success lies in knowing your financial situation at any given time. There is an anecdote attributed to John D. The Good and the Bad of Money Management Good money management needn't be difficult. In fact, there a number of easy steps recommended by most financial professionals to help manage your finances better. How to Obtain a Non ChexSystems Bank Account Without Being Scammed Predatory lending exists in the mortgage industry. It's typically when a mortgage broker add's on unnecessary fee's to a bad credit application, because he or she knows that the applicant is in a desperate situation. How To Protect Yourself Against Identity Theft Identity theft is a serious crime that continues to grow. If you become a victim of identity theft, you may spend months, or years, trying to repair the damage. Roth IRA Contributions - IRS Rules Confused about whether you can contribute to a Roth IRA? Try using these simple rules:IncomeTo contribute to a Roth IRA, you must have compensation (e.g. How To Survive The Grocery Shopping Blues If you are the normal consumer, then you've probably experienced the Grocery Shopping Blues. Most supermarkets use this trick to their advantage to squeeze more money out of their customers and turn a tidy little profit for themselves. Expenses A - What Are They And What Can We Do About Them It is crucial as an individual who is striving for financial freedom to be able to recognize the different type of expenses in our lives. It is a proven theory that it is easier to cut your expense than trying to earn more income.
|
| home | site map | Privacy Policy |
| © 2006 |
