Does Usairways Direct Deposit Your Check?
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toddtravels
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mweiss said:
We have the same thing here. It's called an ACH Revocation. You can get back any monies taken from your account by filing an ACH Revocation within 30 days of the transaction. This works as a stop payment. It can be processed as a "Stop current and all future transactions" or as a "Stop current transaction only". Unfortunately, there is usually a fee associated with request. But a $20 fee is small when it comes to getting your pay back!
My understanding was that ACH Revocation is a revocation of permission to gain access to the account. I was unaware that it could be applied retroactively...and this is coming from a guy who has worked pretty extensively in the electronic payments space!
Just goes to show that we all can learn new things. 🙂
Just goes to show that we all can learn new things. 🙂
jimntx
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toddtravels said:
I know that applies to a check I write, but this is not a question of stopping a payment. Backing out a direct deposit is not a payment from you to the company, it is a reversal of payment from the company to you. And, as I said earlier, if the company is in Ch. 7, the bank might ask for the money back (I doubt it) from the company, but at that point, you are an unsecured creditor who has to get in line with everyone else. The money is under the control of the judge at that point, not the company.
While we're on the subject, there was a long article in Sunday's Dallas Morning News about changes to the clearing house procedures that will speed up the deduction of money from your account for any debit card transactions or checks you write. You will no longer be able to write a check and then count on the "float" to give you time to put money in the account. Of course, under the new rules, the bank can still hold your deposits for up to 5 days before making them available to you.
That's Check21, but I don't believe it applies to debit cards. For one thing, I don't see how debit cards could be processed any more quickly; they're settled daily.
As for paper checks, the new regulations are (theoretically) designed to eliminate the physical movement of these millions of little slips of paper all over the country. Because electrons move much more quickly than physical media, checks get settled much more quickly.
The upshot is, yes, less float to those who write checks.
As for paper checks, the new regulations are (theoretically) designed to eliminate the physical movement of these millions of little slips of paper all over the country. Because electrons move much more quickly than physical media, checks get settled much more quickly.
The upshot is, yes, less float to those who write checks.
mweiss said:
Explain why I can go the local food market and use my debit card, drive home five minutes later and it's already out of my checking as per looking online? Meaning you are wrong and they are settled instantly.
Dept cards are in effect cash, no different.
The new law will make writing a check out in person the same as handing them cash and will eliminate stop payments.
I oversimplified my explanation of debit cards and how they work. Depending on the merchant and several other factors, the transaction may be posted immediately. However, it is not settled until the end of the business day...at the earliest.
Settlement occurs at one of two possible locations.
The simple one is at your financial institution. This occurs when you and the merchant both have accounts at the same institution. Such a transaction is referred to as an "on us" transaction, and thus never has to leave the financial institution.
The more complex one occurs at the Federal Reserve. Settlement at the Fed happens once daily for all but a handful of transactions. The instant settlement transactions don't happen often, because they're expensive. Your merchant will never opt for this for the basic debit card transaction because the processing fees would kill them.
It can get more complex than that, too, but the additional subtleties aren't worth going into here.
So why do you see the transaction post (not settle) instantly? For a few reasons. One is a reduction in risk. The transaction becomes a fully-funded transaction at that time, because you cannot spend that same money a second time. This makes for lower interchange fees to the merchants. Another reason is float. Your bank takes ownership of the funds immediately, and can earn interest (albeit a really small amount) until the transaction settles.
Again, there's more to this story, too...but it gets really complex from here. 🙂
And writing a check in person is not, by any stretch of the imagination, the same as handing over cash. For one thing, you can go home and immediately put a stop on the check. Try doing that with cash. For another thing, you can still write rubber checks. You still have the float until the check hits your account; with cash, you lose the (useful aspects of) float the minute you pull it out of the ATM.
The only significant change (within the scope of this thread) is a reduction in the time to settle. Yes, there are many other significant changes that come from Check21, and I don't like quite a few of them. But that's for another discussion.
Settlement occurs at one of two possible locations.
The simple one is at your financial institution. This occurs when you and the merchant both have accounts at the same institution. Such a transaction is referred to as an "on us" transaction, and thus never has to leave the financial institution.
The more complex one occurs at the Federal Reserve. Settlement at the Fed happens once daily for all but a handful of transactions. The instant settlement transactions don't happen often, because they're expensive. Your merchant will never opt for this for the basic debit card transaction because the processing fees would kill them.
It can get more complex than that, too, but the additional subtleties aren't worth going into here.
So why do you see the transaction post (not settle) instantly? For a few reasons. One is a reduction in risk. The transaction becomes a fully-funded transaction at that time, because you cannot spend that same money a second time. This makes for lower interchange fees to the merchants. Another reason is float. Your bank takes ownership of the funds immediately, and can earn interest (albeit a really small amount) until the transaction settles.
Again, there's more to this story, too...but it gets really complex from here. 🙂
And writing a check in person is not, by any stretch of the imagination, the same as handing over cash. For one thing, you can go home and immediately put a stop on the check. Try doing that with cash. For another thing, you can still write rubber checks. You still have the float until the check hits your account; with cash, you lose the (useful aspects of) float the minute you pull it out of the ATM.
The only significant change (within the scope of this thread) is a reduction in the time to settle. Yes, there are many other significant changes that come from Check21, and I don't like quite a few of them. But that's for another discussion.
Phoenix
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us0004us said:
Actually you are mistaken. Check the US AIRWAYS form that you signed to request direct deposit. It clearly authorizes them access to your account to withdraw funds without your further consent (ie. the signature on your request to have direct deposit is the consent.)
robbedagain
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has the time come for me to discontinue the direct deposit now? or should i wait and see what happpens? i defintely dont want this outfit to steal money out of my account even if i have a direct deposit and if it with another company.
If you do, make sure you deposit your paycheck in the bank the same day it is issued. Otherwise, you run the risk of the check bouncing when Chapter 7 is filed between the issuance and settlement.golden1 said:
The safest (but often difficult) thing to do is take the check and immediately convert it to cash at the issuing institution (i.e., US Airways' bank). Because it's an on-us transaction, they can verify the availability of the funds and give you cash on the spot. Depositing into your bank has the risk of an NSF return (again assuming that they file 7 before settlement), and you'll still be out the money.
jimntx
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No, because with deposits your bank still has up to 5 days to withhold the funds from your use. This is to give them time to make sure the check is good. Even if you deposit it, you can't then spend/transfer the money until they actually "release" the funds into your account. It may show up in your balance, but (to paraphrase the Hanes commercial) "it isn't yours until they say its yours."
What Jim's talking about is the difference between posting and settling. Banks have the right to not make the funds available for up to three days for local checks, and five for interstate. They don't have to, however.
If you were to direct deposit into checking, and immediately move the money, then a direct withdrawal may either be rejected or may put the account into a negative balance. Up to your bank.
Ultimately, this is why I said the safest approach is to cash the check at the issuing institution on the day you get it. That cannot be reversed.
If you were to direct deposit into checking, and immediately move the money, then a direct withdrawal may either be rejected or may put the account into a negative balance. Up to your bank.
Ultimately, this is why I said the safest approach is to cash the check at the issuing institution on the day you get it. That cannot be reversed.
