Banking… how things have changed

[jyoutz]

The pandemic certainly curtailed banking with many local branches closed over a year and by appointment when reopened until fairly recently.

Banks are again open but making cash and/or “Large” deposit is not business as usual and now cause for extra scrutiny and holds up to 15 days… crazy when computers are able speed operations in the blink of an eye.

I still run my small property management company of 40 years and rent is typically paid by check or electronic transfer… or cash if rent in arrears or past check with issues

By law up to 3 years unpaid pandemic rent cannot be reason for eviction.

I have been doing business for over 50 years with Bank of America and US Bank… never a bounced check drawn on any of my accounts ever.

One of my very behind tenants sold his car and gave me $3,000 in cash on 14k back rent he owes.

Went to deposit at my branch and it took the branch manager approval to accept the cash deposit to my Property Management Business Account with the reason being a crackdown on cash deposits…???

“Cash is King” seems to no longer be the case…

The Bank also gave me a printed notice that a Account Hold may be placed on accounts where total deposited checks total more than $5,525 in a day…

On a related note I deposited my personal check of $2500 to a family joint account to cover up coming estate incidental expenses without issue and later that day received this email stating:

$2,500.00
Hold reason:	A 15 day hold was placed on your check(s) because check specific information indicates item may be returned

Interesting times we live and nothing gets easier when running a business…

I have dropped doing business with banks and now use a credit union exclusively. They treat you much better. I actually deposited a check for $220k in May (inheritance from father’s estate) and they put no hold on it. Their loan rates are lower and interest paid on accounts and CDs is higher. I cannot think of a reason to still do business with a bank.

 

[Jstpssng]

Here is a funny thing...

If $100 dollars is kept "digitally" and only processed through the banking debit card system, after 3,333 transactions that $100 will be all sitting in the bank as their profit. Every time a transaction is made, the card processor takes 3%. That $100 is no longer currency in circulation.

If 100 dollars is kept as currency and spend over and over again, that $100 will still be able to purchase $100 of value. That $100 stays in circulation.

This is why banks want to be all digital. They take a cut on each swipe.

Cash and debit cash are different mechanisms at play.

You might want to check your math. Aside from that yours is a valid point. I have mentioned that "cost to the vendor" in the past... many small businesses have a minimum purchase amount. I've seen a store owner (not employee) give a woman a cup of coffee because it wasn't worth the cost of swiping it.

Last fall I went to a restaurant and when it came time to pay the bill I found they charge 3% for using a card. No doubt it was mentioned on the menu or someplace and I had the cash in my pocket, but wanted part of the tip on the card. I had also left cash on the table... some for the waiter, some for the government.

 

[drssg]

I thought that putting a hold for the value of a deposited check was common practice, because they can't always confirm that the check is valid or won't bounce. The bank may not actively notify the depositor, especially if the amount deposited is substantially less than the account balance.

There was an old scam that might still be in use. A person would respond to an ad on Craigslist or something and want to send a check for greater than the sale price. In return, they ask that the seller send money to someone else. There is always a long and goofy justification for why this is needed.

If the seller bites, he can receive and deposit the check before sending out the money. There is a delay before the bank can determine that the check is bogus.

 

[MossRoad]

I thought that putting a hold for the value of a deposited check was common practice, because they can't always confirm that the check is valid or won't bounce. The bank may not actively notify the depositor, especially if the amount deposited is substantially less than the account balance.

There was an old scam that might still be in use. A person would respond to an ad on Craigslist or something and want to send a check for greater than the sale price. In return, they ask that the seller send money to someone else. There is always a long and goofy justification for why this is needed.

If the seller bites, he can receive and deposit the check before sending out the money. There is a delay before the bank can determine that the check is bogus.

Advance-fee scam - Wikipedia

en.wikipedia.org

 

[Snobdds]

You might want to check your math. Aside from that yours is a valid point. I have mentioned that "cost to the vendor" in the past... many small businesses have a minimum purchase amount. I've seen a store owner (not employee) give a woman a cup of coffee because it wasn't worth the cost of swiping it.

Last fall I went to a restaurant and when it came time to pay the bill I found they charge 3% for using a card. No doubt it was mentioned on the menu or someplace and I had the cash in my pocket, but wanted part of the tip on the card. I had also left cash on the table... some for the waiter, some for the government.

100÷.03 = 3,333.33

 

[ultrarunner]

Check fraud may be rampant. Big banks are rife with policies to protect the bank. Branch managers have little authority, but are expected to run a profitable branch.

that is just what goes along with a big bank and why so many locally owned banks keep popping up to compete with them.

There was a time when the branch manager had tremendous authority as when I got my first real job with a weekly paycheck at 13

Manager said anyone earning a weekly paycheck is welcome to open an account in his branch… no family connection at that branch and no adult signature for my checking account.

My how things have changed

 

[rswyan]

You might want to check your math.

100÷.03 = 3,333.33

Try multiplying 100 by 0.03 instead.

That will give a result which is 3% of 100.

AKA the number 3.

Now if you’re trying to consume the amount you started with (100) by means of a 3% fee, then use that number (3) to divide the original amount:

100 divided by 3 = 33.33

Not 3,333.33 …

 

[Jim Shooz]

Here's a look into your future. None of our bank will accept cheques (checks). About a year or so ago bank decided that check usage was getting lower so they stopped accepting them and started closing down branches. Payment for purchases is either Debit card or Credit card. Bills are usually sent to you email. letters posted has dropped by about 75%. Bill payment is usually by bank transfer.

 

[Hay Dude]

I have dropped doing business with banks and now use a credit union exclusively. They treat you much better. I actually deposited a check for $220k in May (inheritance from father’s estate) and they put no hold on it. Their loan rates are lower and interest paid on accounts and CDs is higher. I cannot think of a reason to still do business with a bank.

Oh my! Aren’t we flush with cash…
New Cummins?

Sorry about the loss of your father. Mine died young.

 

[Hay Dude]

Here's a look into your future. None of our bank will accept cheques (checks). About a year or so ago bank decided that check usage was getting lower so they stopped accepting them and started closing down branches. Payment for purchases is either Debit card or Credit card. Bills are usually sent to you email. letters posted has dropped by about 75%. Bill payment is usually by bank transfer.

I see this happening here. At my last visit to my branch, my friendly albeit a bit wacky branch manager pushed me into adding the “zelle” feature to my phone. I do think this is the way we will all be pushed into transferring money. It’s all digital. Just a few keystrokes and the money is sent. Banks can easily track what you are doing.
The amounts you can wire are pretty high, 10’s of thousands. There’s no “wire transfer fee”.

This is the wave of the future. Cash is going away. Our money was once backed by at least some gold. Then it was backed by special paper made in a mint.

Now it’s backed by?????