How can Wachovia deduct money for an uncashed check?

I use Quicken to manage my parents money (they are elderly). I wrote an electronic check from their Wachovia checking account and noticed that they deduct the amount of the check from their balance even if the check is never cashed. This just doesn't seem right. I asked them about it and their reply didn't answer my question at all but acted like I was concerned about a lost payment. Can a bank actually deduct funds for an uncashed check even if the check was written through quicken and a physical check had to be mailed by them?

Thanks, Don

Reply to
Don
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Bank of America does the same thing. They deduct the amount of the electronic check on the day they send it out. This is probably to insure that there are funds to cover the check.

If the check was never cashed then you need to go to the bank and get that corrected. I had it happened to me where the check from BoA went to the wrong vendor so it was returned to me. It took a bit of explaining to them but I finally got it deposited back into my account. It proably helped that I had the actual check to show them.

Reply to
Laura

Thanks for the reply Laura. What you say makes sense and prevents an electronic check from bouncing provided the funds are truly there to withdraw. I guess you just need to run some report that gives you all uncleared checks and be prepared to argue your case. My guess is they would then charge $20 for a stop payment charge before they put the money back into your account. Banks are right up their with the government when it comes to nickle and diming you to death.

Reply to
Don

I think the issuing of the Stop payment order is up to you. In my case I had the paper check issued by the bank so I did not have to issue the stop payment. In your case you might want to do that to be safe unless you know why the check was never cashed.

Reply to
Laura

What check?

Well, aren't you? Just what is the concern, if it isn't a concern that the payment was not received?

Yes, of course. Because there was no 'uncashed check'. There was an electronic payment transaction which was processed by a bill paying service. The money is deducted when the payment is processed (as is stated in the FAQ's for Wachovia bill paying). The fact that there *may* have been a physical check that was generated and mailed is immaterial.

One thing you should be aware of - payments submitted through Quicken or through Wachovia's online bill pay do not always result in physical checks being created and mailed. Oftentimes the payments are made electronically, especially if the payee is a utility, financial institution, or business known to the bank. Heck, even my daughter's dance school payments were replaced as EFT instead of mailed physical checks.

You should also know that back around April 2007, Wachovia instituted a FEE for using bill-pay through Quicken (although some types of accounts have been grand-fathered). Bill-pay initiated through the bank website is free. As are downloads. But using the update button within Quicken to send/receive payments or information will cost you $5.95 per month, for all but 'Crown' banking type accounts.

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Reply to
L

Yep.

I think the main reason they do it is that the less time the funds stay in your account, the less interest they have to pay you.

Reply to
Ken Blake

Not BofA, All Other States. They take the funds from my account on the "delivery" date, not the date they send the payment. The "delivery" date can be as many as 6 days after the check is sent.

This seems fair enough to me; the check is a BofA check, so BofA must have the funds in *their* account when the check is cashed. Since it can't be cashed before it's delivered, they don't take the funds 'til it's delivered.

I think both the bank and I come out ahead when all the costs are figured in (and for those payments that are electronically transferred, the payee comes out ahead too).

Reply to
John Pollard

Yes, same here. I read Laura's message too quickly and agreed incorrectly. Sorry.

Reply to
Ken Blake

Electronic cheques are just plain stupid as your post demonstrates. What's wrong with old-fashioned cheques in this context?

Reply to
sharx35

The check they wrote. The physical piece of paper that arrived in the mail. Get it?

Try reading my post again. You seem confused. My concern as stated previously is that Wachovia deducts the amount of a "physical" check written through Quicken on the due date and not when it is actually cashed. It is not a big deal but was a bit of a surprise.

I've been using electronic payment for a very long time and I'm well aware that sometimes checks are nothing more than an EFT and sometimes a physical check is cut and mailed.

My parents pay nothing so they must have the Crown banking account.

Reply to
Don

Interesting comment. Electronic checks have saved us tons of time, stamps and checks from a check book. Not to mention the huge convenience factor and the fact that an envelope with a check in it is sitting in our mailbox for some id thief to take.

Reply to
Don

That's how it works!

Then surely you are aware that the amount is deducted from your account and an EFT (closed almost immediately) or a paper check is mailed on your behalf by the online check processing company (usually Checkfree). It may also surprise you that such paper checks are considered cashiers checks since the monies have already been deducted and thus accounted for in the check. Further shock may hit you when you realize that as a cashier's check one need only write "Not used for intended purpose" on the back in order to cash said check. My ex-wife taught me that one as she stole my money...

Surely as a very long time user of online checks you are aware of all of these fine points...

Reply to
Andrew DeFaria

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Reply to
Don

I use Quicken to manage my parents money (they are elderly). I wrote an electronic check from their Wachovia checking account and noticed that they deduct the amount of the check from their balance even if the check is never cashed.

What check?

The check they wrote. The physical piece of paper that arrived in the mail. Get it?

This just doesn't seem right. I asked them about it and their reply didn't answer my question at all but acted like I was concerned about a lost payment.

Well, aren't you? Just what is the concern, if it isn't a concern that the payment was not received?

Try reading my post again. You seem confused. My concern as stated previously is that Wachovia deducts the amount of a "physical" check written through Quicken on the due date and not when it is actually cashed. It is not a big deal but was a bit of a surprise.

That's how it works!

Can a bank actually deduct funds for an uncashed check even if the check was written through quicken and a physical check had to be mailed by them?

One thing you should be aware of - payments submitted through Quicken or through Wachovia's online bill pay do not always result in physical checks being created and mailed. Oftentimes the payments are made electronically, especially if the payee is a utility, financial institution, or business known to the bank. Heck, even my daughter's dance school payments were replaced as EFT instead of mailed physical checks.

I've been using electronic payment for a very long time and I'm well aware that sometimes checks are nothing more than an EFT and sometimes a physical check is cut and mailed.

Then surely you are aware that the amount is deducted from your account and an EFT (closed almost immediately) or a paper check is mailed on your behalf by the online check processing company (usually Checkfree). It may also surprise you that such paper checks are considered cashiers checks since the monies have already been deducted and thus accounted for in the check. Further shock may hit you when you realize that as a cashier's check one need only write "Not used for intended purpose" on the back in order to cash said check. My ex-wife taught me that one as she stole my money...

Surely as a very long time user of online checks you are aware of all of these fine points...

-- Andrew DeFaria If croutons are stale bread, why do they come in airtight packages?

Reply to
Oilcan

I think that what you call electronic checks, up here in Canada we call Pre-authorized debits. For example, I have an arrangement with the utility company to debit my bank account, monthly, to cover my utility bill. They still send a statement, about 2 weeks PRIOR to the debit date. NO service charge. The event occurs transparently on the DUE DATE of the statement. No stamps, no envelopes etc. The responsibility is on the utility company to submit the authorization to the bank, i.e. activate the authorization, on a monthly basis--I don't have to do anything.

Is THAT what you guys mean by electronic cheques? I can't see actually having to PAY some other company to send yet ANOTHER company some money...unless we are talking about something like Pay Pal???!!!

Reply to
sharx35

That's one type of electronic cheques. This scenerio works for companies that except electronic payments. Another type is when the bank actually cuts a paper check that is mailed to your vendor. In this the bank withdraws the funds either when they send the check or the date theyu expect delivery to happen. They don't care if the check is cashed or not. The problem is that the bank does not know if the check is even cashed and you have to hassle with them when you discover that the check has not been cashed.

Reply to
Laura

I spoke to Wachovia on the phone yesterday and got someone who fully understood my question. They said (as many of you have told me) that anything that is written electronically (Quicken, Money, Wachovia's online bill paying mechanism) is drawn on bank funds and the money is deducted from my parents account the day the check was due. Even if it is never cashed. They also said if the check is not cashed within 90 days the money is automatically put back into the account. I'm ok with that answer. Thanks for the replies out here.

Don

Reply to
Don

Brilliant! Just f****ng brilliant!

Reply to
Andrew DeFaria

yourself, however some people have been known to pay for the convenience of such things...

Reply to
Andrew DeFaria

Andrew DeFaria wrote in news:46978cf2$0$505$815e3792 @news.qwest.net:

That's one solution. I prefer to have utilities and credit card companies paid via automatic deduction. I know I am privileged in being able to write a check against my equity loan to cover unforeseen expenses, but I (including my spouse in this "I") worked and saved for this. Now, for the really important bills there is no worry that they get paid. Real estate tax and other taxes I still handle without automation, but they are "announced" in my Quicken register ahead of time. Water bill requires a real check, sorry to say.

Reply to
Han

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