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Automated Clearing Hell by anthroguy101

After years of wasted stress I have learned the one piece of financial advice everyone must follow: do not send a personal check. Ever at all.

The computer system used to process these payments date back to the 1970s, and despite the name, is not fully automated. There are people at nearly every end of the transaction going through individual batches. If your check is even the slightest bit suspicious, no matter how much money you have, it will be held.

During the Reagan administration, it became clear that banks were not being fair with their hold policies. Many financial institutions would intentionally hold deposits for long periods of time to have all of its value go back to the bank in the form of return item fees.

Regulation CC and the Check 21 Act were supposed to address this, but with the ACH system being overloaded with sites like Amazon and PayPal, it is hard to keep up with these federally-mandated deadlines, and many major banks and brokerages have simply dropped the ball.

This has led to a growing number of establishments refusing to accept checks altogether, placing up signs for emphasis.

The age of the written check has reached its terminus. No one should have to put up with the hassle involved with ACH payments. Direct deposit are its only useful purpose. Let’s keep it that way.

If you need to make a payment, please use a debit card. Make sure the overdraft is disabled, and use your savings account for any snafus.

If you need to make a large purchase, such as a car or real estate, get a cashier’s check. The $25 fee for this pales in comparison to the back-and-forth NSF charges you might face if you forget your balance, get hacked or run into an emergency.

A check for over $5000 will take at least seven business days to process. It’s just not worth the risk.

Automated Clearing Hell

anthroguy101

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