August 24, 2004

• You're right, this does seem a bit sketcy. I've never seen this, but I bet that the storeowners love it because they're able to accept cheques and not have to worry about them bouncing. Don't they only cheque idea the other times so they know who to hunt down if things go bad? Like maybe they're only concerned with their bottom line? I don't really know though, just a thought..
• Checks are ridiculously outdated and you never had much protection against check fraud in the first place. If this seriously concerns you, you should stop writing checks. If this doesn't concern you, you should stop writing checks anyways. The person taking a check is not legally allowed to ask for ID in order to protect the consumer from fraud. They are allowed to ask for ID to protect themselves from fraud. They have figured out a new and better way to protect themselves and nothing has actually changed for the consumer. Recent changes in check cashing laws in America
• Back in 2002 I had someone steal $750 out of my bank account simply by having the ABA/routing number from one of my checks. They used it online to buy stuff through IBill, etc. My bank did get the money back after some complaining. However this was a clear demonstration to me that funds security is nothing more than 128-bit window dressing. The story doesn't surprise me.
• Yeah, thanks Testy - you said what I was kind of getting to, but scared to commit to. I agree though, maybe cheques aren't for you anymore.
• I think that even when they do ask for id, it's not to protect you - just themselves.
• Don't they only cheque idea the other times... Huh? ;o) So, I had something to say about that new check system, but then previewed & saw Testy Cod's post. Good point, there. Now I have to read that article... On a related note, have you ever noticed how many cashiers don't check your ID when you use an ATM card? The store I go to most frequently has the little machine at the checkout stand that I use when I'm doing a credit/ATM purchase. For credit, a warning sounds and the cashier asks to see the card/ID. For an ATM transaction, the card is *never* looked at. I've been convinced for a while that the only way to protect yourself from ID theft & fraud is to keep a very close eye on what's going on with your money. Fortunately, a great many banks provide excellent, and quick, fraud protection.
• checks? how very quaint!
• Checks are evil!
• I'm told banks in NZ don't routinely check anything as basic as dates and signature on cheques for less than a couple of thou any more.
• I think what bothers me most is watching how frustrated the old folks get when trying to cash a check at this store and the explanation given to the customer is *this system is for your protection and ours.* My argument with them is, how can they tell customers that this will protect the consumer when it blatantly doesn't. I said my piece to the cashiers and it bothers me that they are pushing this as a protection for the consumer. I have a checking account, which I rarely use. If I haven't the cash I don't make the purchase. I rarely write checks and never at this particular store. If I write a check it is written at my bank for cash. ATM cards here in the sticks are expensive to use. If I use any ATM that isn't my banks I get charged a fee everytime. My banks nearest ATM is 15 miles away. So it is not worth it to me. I know, cash, how quaint. TestyCod thanks for the link.
• It has nothing to do with protecting the customers. Nothing that anyone who wants to take your money does has ANYTHING to do with helping the consumer. The only thing this system does is prevent bounced checks. (So I guess that it could be claimed that it "helps" consumers by making shure they don't pay some bounced check fee, but that is the ONLY way that I can see that consumers might be helped by this system.)
• jccalhoun, yes this true, and that is what bothers me when I hear a cashier explaining to consumers how this system will *protect* the customer. Because all it does is prevent bouncing a check. Which protects the customer in the sense they will avoid overdraft fees and possible legal penalties for bouncing a check. It protects the stores bottomline, that is mainly what it does. So the chasier explaining how it *protects the consumer* and *makes it easier to catch someone writing bad checks* is misleading. It does less to stop fraud and theft than the old system of checking and recording ID. It makes checking easier for the store and the banks, protecting them only. Not the consumer.
• chasier=cashier
• Since you mentioned banks... The last time I used a bank was to cash a Bank One check at a Bank One branch. In order to cash a check drawn on their own accounts I had to pay $5 and give a thumb print for the privilege. The practice of check discounting has been so frowned upon in the past that The Federal Reserve did not allow banks that practiced it to use their services. Although "check discounting" referred to the specific practice of taking a percentage of check's face value when the check was from an arbitrary distance away, I don't see how charging me $5 to cash a check drawn from one of their account was any different. (Actually, part of me does. The Fed frowned upon check discounting to protect its market share and thereby, its power over the market.) American banks provide an easily replaceable service in a market with a lot of competition. Unfortunately, for some "strange" reason, teller fees and check cashing fees seem to be standard practice at all of them. My solution was to realize that banks didn’t practice policies that benefit their customers or consumers and that it was time to find a good credit union. I did and I will never go back, I hope you do too. (For those of you who have wondered about this: banks really do cash the big checks written against your account first, because when done across all accounts it makes them a lot of money in overdraft fees. Even my credit union does it.)
• But, the thing with ATM cards is that you have to hove the PIN to make the transaction work. I know there have been scams where bad guys would learn your PIN with cameras,but I think they're realatively rare. What bothers me is using my ATM as a credit card, which mosts banks encourage now (they get bigger fees.) Most stores don't ask for id even for credit cards, so if someone bad managed to get my ATM card, they could cause a lot of grief.
• Note to myself. You know, when you preview, you're actually supposed to read what you wrote.
• This system only protects the bank- the retailer still eats the loss if a check bounces. The primary goal is to make writing a check so painful that the customer will prefer using debit or credit. The check authorization thing doesn't verify your funds- it just verifies if you've bounced any lately. You could write dozens of bad checks in a single day and not get caught. Not until the checks are posted that evening, anyway. The bank would be happier if all transactions were electronic- it costs them much less to process. And, contrary to expectations, the banks really prefer check cards over credit. The money changes hands less, and they profit more. The retailer ends up paying most of the processing fee either way, but they get dinged more for credit.
• when i use my ATM as a debit card, i pay 25 cents. when i use it as a credit card, it's a free transaction. i don't use checks anymore, except for rent.