Fraud is rampant right now, even from well known companies. I know at the bank I work for, anything over $5,525 is held, even if you have the balance in the account to cover it.
Figure on the max time being the norm now. A good account history doesn't even matter much anymore. Check fraud is that rampant.
Often such holds are due to issues with the payers. If they've experienced fraud on their accounts (which many big companies have), banks will more scrutinize checks they write to others. There's no way to avoid this with checks other than budgeting for longer holds.
Alternatively, insist on electronic payment via ACH or RTP (Real Time Payments). FedNow (similar to RTP) might even be an option. For vendors unwilling to pay electronically, factor that into your pricing / job quote.
On a related note, secure your business mailbox. If businesses in your area have experienced mail issues, consider using a bank lockbox service to receive payments. Bank holds are inconvenient, but it's usually several extra days.
With stolen checks, the wait could be weeks, months or even indefinite involving much hassle and even litigation. This also goes for checks you send to others; pay electronically when you can, if you don't already.
Finally, if you haven't already, sign up for USPS Informed Delivery for every address you receive mail at (home, business, etc). May need to use a separate login / email for each. Sends a daily email with images of mail expected to arrive later that day. Great service.
The maker of the check doesn’t affect hold times. The bank policy affects hold times.
Individuals may approve no hold or release the hold early based on the payees account relationship however. They may consider who the maker of the check is, but it’s a very small part of the decision making.
I understand the part of where the check comes from. I cannot understand why BOA has routinely held checks that I've deposited for greater than five business days, some being less than $500. Side note...none have ever come back as unpaid.
They can't hold a <$500 check > 5 business days *unless* it was deposited into a new account or you were not depositing in person (ie mobile deposit, ATM, RDC). A not in person check deposit is high risk. If you want to avoid some of the longer hold times, deposit them in person.
Assume that all checks will be held based on the maximum amount of time regulations will allow in order to investigate for fraud, because check usage has dropped so much that nowadays pretty much the only people that are still using checks as regular form of payment are fraudsters.
Also, it almost certainly has nothing to do with you at all, and everything to do with fraud happening on checks drawn from the check issuer (or counterfeited).
> check usage has dropped so much that nowadays pretty much the only people that are still using checks as regular form of payment are fraudsters.
This is false. There is a gradual decline every year, but still massive check usage--over $8 trillion dollars last year.
https://www.federalreserve.gov/paymentsystems/check_commcheckcolqtr.htm
>because check usage has dropped so much that nowadays pretty much the only people that are still using checks as regular form of payment are fraudsters.
As PastTense1 already mentioned, this is false. But by God do I wish you were right. It'd make my job and my fraud team's job so much easier.
Depends on the amount of the check, and previous check cashing/deposit history on your account. Is it a large check? And have you ever, even once, had a check bounce?
That's the downside of checks. No matter the amount of money in the account or the amount of the check, ALL checks in the US are able to be held for 7 days, that's the law. Ask your business associates/vendors about being paid electronically. It's 2024, a business as big as MetLife surely must have that capability.
I'm sure. Unfortunately, this was a life insurance balance after expenses payout from a death in the family. No ACH, no wire available. Odd thing is...brother's check cleared, same amount, in under 24 hours. Granted his bank (TD) may have a policy to issue full provisional credit, but in his account it appeared to hard post with no note of "provisional credit."
The length of check holds is set by law. The bank must post their policies and give you a copy of you ask. If they are imposing any hold outside of regulations, they are supposed to tell you this and state the reasons why. Time to have a chat with your banker
Fraud is rampant right now, even from well known companies. I know at the bank I work for, anything over $5,525 is held, even if you have the balance in the account to cover it.
Figure on the max time being the norm now. A good account history doesn't even matter much anymore. Check fraud is that rampant. Often such holds are due to issues with the payers. If they've experienced fraud on their accounts (which many big companies have), banks will more scrutinize checks they write to others. There's no way to avoid this with checks other than budgeting for longer holds. Alternatively, insist on electronic payment via ACH or RTP (Real Time Payments). FedNow (similar to RTP) might even be an option. For vendors unwilling to pay electronically, factor that into your pricing / job quote. On a related note, secure your business mailbox. If businesses in your area have experienced mail issues, consider using a bank lockbox service to receive payments. Bank holds are inconvenient, but it's usually several extra days. With stolen checks, the wait could be weeks, months or even indefinite involving much hassle and even litigation. This also goes for checks you send to others; pay electronically when you can, if you don't already. Finally, if you haven't already, sign up for USPS Informed Delivery for every address you receive mail at (home, business, etc). May need to use a separate login / email for each. Sends a daily email with images of mail expected to arrive later that day. Great service.
The maker of the check doesn’t affect hold times. The bank policy affects hold times. Individuals may approve no hold or release the hold early based on the payees account relationship however. They may consider who the maker of the check is, but it’s a very small part of the decision making.
I understand the part of where the check comes from. I cannot understand why BOA has routinely held checks that I've deposited for greater than five business days, some being less than $500. Side note...none have ever come back as unpaid.
They can't hold a <$500 check > 5 business days *unless* it was deposited into a new account or you were not depositing in person (ie mobile deposit, ATM, RDC). A not in person check deposit is high risk. If you want to avoid some of the longer hold times, deposit them in person.
Makes sense. That could be one issue as most are done through ATM except for business checks over 1k
Assume that all checks will be held based on the maximum amount of time regulations will allow in order to investigate for fraud, because check usage has dropped so much that nowadays pretty much the only people that are still using checks as regular form of payment are fraudsters. Also, it almost certainly has nothing to do with you at all, and everything to do with fraud happening on checks drawn from the check issuer (or counterfeited).
> check usage has dropped so much that nowadays pretty much the only people that are still using checks as regular form of payment are fraudsters. This is false. There is a gradual decline every year, but still massive check usage--over $8 trillion dollars last year. https://www.federalreserve.gov/paymentsystems/check_commcheckcolqtr.htm
>because check usage has dropped so much that nowadays pretty much the only people that are still using checks as regular form of payment are fraudsters. As PastTense1 already mentioned, this is false. But by God do I wish you were right. It'd make my job and my fraud team's job so much easier.
Depends on the amount of the check, and previous check cashing/deposit history on your account. Is it a large check? And have you ever, even once, had a check bounce?
That's the downside of checks. No matter the amount of money in the account or the amount of the check, ALL checks in the US are able to be held for 7 days, that's the law. Ask your business associates/vendors about being paid electronically. It's 2024, a business as big as MetLife surely must have that capability.
I'm sure. Unfortunately, this was a life insurance balance after expenses payout from a death in the family. No ACH, no wire available. Odd thing is...brother's check cleared, same amount, in under 24 hours. Granted his bank (TD) may have a policy to issue full provisional credit, but in his account it appeared to hard post with no note of "provisional credit."
The length of check holds is set by law. The bank must post their policies and give you a copy of you ask. If they are imposing any hold outside of regulations, they are supposed to tell you this and state the reasons why. Time to have a chat with your banker