Well last night I made a stop into the store to make a payment on my Premier Visa. The associate took my check, processed it, and asked me to sign the signature pad. I couldn't figure out why I needed to sign my name to make a payment via check. That's when I read the bottom and noticed this: So what exactly does this mean? That if I bounce my payment check that they can charge me their fee (I think $35) PLUS all fees and collection costs (isn't it like 3x the amount of the check that they can get?) by law? For example: Say you make a $30 payment and you bounce the check. They can turn around and debit your checking account for $125 (3x the amount of check plus $35 bounced check fee)???? What if you don't have the money in there...can they just overdraw your account for the money???? All I have to say is....I'm glad I have overdraft protection. Just think...there are several people out there that are agreeing to this by signing but have no clue. It is printed on the bottom of your payment receipt though. Scary...makes me wanna think twice about writing them a check but they have no electronic way to make payments on their Premier Visa's (even if you go through some sort of bill pay service, they'll have to cut and mail them a check). They do on their regular Macy's accounts.
If you check is returned to a merchant, the merchant can "redeposit" your check electronically twice. They can collect the money out of your account and also charge you whatever their returned check fee is (I believe that it must be posted and is between $20 and $40 depending on state).
They told me the same thing last month when I paid at the local store. They said it was for "my protection". Ha ha But I notoced what you noticed.
Yes...they will NOT take your check if you don't sign. I guess to be safe, you should just mail your payment.
Check the fine print on your statement even when mailing your payment, it is the same. When paying by check, you are authorizing payment electronically via the ACH processing system. You have to sign because without your signature they wouldn't or aren't supposed to be able to collect anything over the face value of the check, read bounced check charges, whatever the max is that your state allows. Watch for that same signage and notification at the grocery stores, walmart -- it's most everywhere you frequently use a check! Sassy
It's becoming universal now. I was buying flowers at a little garden place last weekend - lady paid with a check, and the clerk keyed in all of the numbers into what looked like a credit card terminal. Out popped a receipt, the customer signed it, and was given back their check. Totally electronic presentment. We have a local grocery chain here that will link your checking account to your store loyalty card - just scan the card, enter your pin, and EFT happens. All of this makes having overdraft protection VERY important - debit cards, e-payments, etc. If not a line of credit, some kind of savings reserve. -mj
Any company can electronically redeposit your check as long as it is posted in the store that they reserve the right to do so, but to go after a fee they MUST have your signature on file. NACHA, the organization that makes the electronic banking regulations may change the regs soon to allow merchants to go after the fee as well with just a posting. Having your check scanned and returned to you is just called electronic check conversion and the check travels through the Federal Reserve electonically rather than in the form of paper, thus saving the merchant labor costs form the handling of the check. These e-checks clear only slightly faster than paper checks thereby still allowing some "float." For more info, your can try www.nacha.org
I noticed american express mentioned on this last statement that they "may" (means will) deposit your check electronically even if you mail in a payment by check & that it'll probably clear faster. They are making it sound like it is such a good thing for the check writer. Why would we care if they get their money sooner. Sometimes the float is good.
