ASB Bank Cheque clearance times !!

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Forums › Finance and wealth management › ASB Bank Cheque clearance times !!

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maxeon

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#2337473 15-Oct-2019 15:23

sen8or:

Its been a long time since I worked at a bank, but bank cheques (and IRD cheques) used to be deposited as cleared funds. It was nigh on impossible to cancel a bank cheque except in extreme and rare circumstances, and even then only if it hadn't been presented.

Perhaps its the change in anti money laundering laws that have necessitated the need to force clearance times on all cheques, but 5 days does seem a long time.

Yes 5 days is a long time specially considering it's from the same bank and to the same bank's account. 7 Days if you include weekend.

We get instant transfers between Australia and NZ going and we go backwards (or ignore?) towards something legacy that's about to die out.

It was completely my "fault" in assuming this would be cleared funds and I am facing my own ignorance now :(

richms

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#2337532 15-Oct-2019 17:12

The issue with all these methods is that banks will reverse them if the sender claims that they were hacked etc,

The only safe method is cash. I have actually gone to the bank with someone once, had them withdraw the cash and then immediately given it back to the teller inorder to deposit into my account. This was only for a few $100 but for the circumstances I didnt trust the person at all. If they internet banking it over, they just have to claim that they are hacked and the bank will take it back with pretty much no questions and no comeback.

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maxeon

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#2337534 15-Oct-2019 17:16

Hmm. I doubt they can reverse instant transfers with hack being a reason?

richms

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#2337536 15-Oct-2019 17:17

maxeon: Hmm. I doubt they can reverse instant transfers with hack being a reason?

What do you think happens to those people that receive them and then send the money offshore thru western union?

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maxeon

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#2337538 15-Oct-2019 17:19

Offshore is a different scenario.. Locally you need to and can prove it that there was an agreed transaction

mudguard

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#2337565 15-Oct-2019 17:50

GSManiac:

I remember working at a bookshop and having a guy write a cheque to buy a 80cent stamp. Crazy.

When I was a student in Dunedin I had a burglary and they subsequently caught the person. I got reparations from the Ministry of Justice in the form of cheques for ridiculously small amounts as s/he was repaying it back. I don't think I ever cashed one, they were for less than $5 and they just used to sit on my dresser until they expired.

I wonder if they are still being sent to one of my old addresses.

But yeah, cheques are painful. The company I work for now will not accept payment from a third party at all because of AML requirements (we fund equipment and expect payment from a dealer of ours, not the customer).

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quickymart

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#2337663 15-Oct-2019 19:06

Last time I was in America, I was stunned to find that cheques are still basically king when it comes to payments. Hardly anyone uses our equivalent of EFTPOS - but I do hear that is changing (ie, less cheques, more electronic). It's about time! Just a pity a lot of Americans are so resistant to change. Imagine what their government would look like under MMP!

Geektastic

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#2337816 15-Oct-2019 22:57

Cheque, you say?

Sounds vaguely familiar.

Geektastic

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#2337817 15-Oct-2019 22:59

quickymart:

Last time I was in America, I was stunned to find that cheques are still basically king when it comes to payments. Hardly anyone uses our equivalent of EFTPOS - but I do hear that is changing (ie, less cheques, more electronic). It's about time! Just a pity a lot of Americans are so resistant to change. Imagine what their government would look like under MMP!

My brother lives there and I am often amazed at what he cannot do with his bank online. And yes cheques (or checks) are used a lot still, as is cash - far more than here. I use cash so rarely that if I get coins I actually have to look at them closely to see what denomination they are because I do not recognise them by sight any more!

Handle9

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#2337831 16-Oct-2019 01:24

Geektastic:

quickymart:

Last time I was in America, I was stunned to find that cheques are still basically king when it comes to payments. Hardly anyone uses our equivalent of EFTPOS - but I do hear that is changing (ie, less cheques, more electronic). It's about time! Just a pity a lot of Americans are so resistant to change. Imagine what their government would look like under MMP!

My brother lives there and I am often amazed at what he cannot do with his bank online. And yes cheques (or checks) are used a lot still, as is cash - far more than here. I use cash so rarely that if I get coins I actually have to look at them closely to see what denomination they are because I do not recognise them by sight any more!

Try the middle east. Bouncing a cheque is a criminal offence in most Islamic countries. As a result anything that would require security (car loan, rental payments etc) is done by cheque.

In NZ you can pretty much sign a cheque mickey mouse and it goes through. In the UAE if you sign your name slightly differently or slightly below the line the cheque gets rejected and you have to issue another one. It gets a bit farcical sometime but different folks, different strokes etc.

Handle9

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#2337832 16-Oct-2019 01:25

Saying that a cheque clears the same day you present it here :)

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sen8or

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#2341881 22-Oct-2019 15:00

I still remember when retailers charged a 25c cheque clearance fee, supermarket where I worked as a teen did it automatically.

My father presented a cheque to pay for something (can't recall what, a few hundred dollars worth) and the shop assistant informed him it'd be an additional 25c for the fee. Without complaint, he simply said no, but here, you can charge it against my c/card which they did without question. 25c clearance fee vs 4% c/card costs. I'm sure the store clerk was just following policy (as all staff should) but clearly there were gaps in the logic sometimes.

Geektastic

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#2342018 22-Oct-2019 19:21

Handle9:

Geektastic:

quickymart:

Last time I was in America, I was stunned to find that cheques are still basically king when it comes to payments. Hardly anyone uses our equivalent of EFTPOS - but I do hear that is changing (ie, less cheques, more electronic). It's about time! Just a pity a lot of Americans are so resistant to change. Imagine what their government would look like under MMP!

My brother lives there and I am often amazed at what he cannot do with his bank online. And yes cheques (or checks) are used a lot still, as is cash - far more than here. I use cash so rarely that if I get coins I actually have to look at them closely to see what denomination they are because I do not recognise them by sight any more!

Try the middle east. Bouncing a cheque is a criminal offence in most Islamic countries. As a result anything that would require security (car loan, rental payments etc) is done by cheque.

In NZ you can pretty much sign a cheque mickey mouse and it goes through. In the UAE if you sign your name slightly differently or slightly below the line the cheque gets rejected and you have to issue another one. It gets a bit farcical sometime but different folks, different strokes etc.

When I worked for the government one of my strange tasks was being the authorising signatory to pay Helen Clarke's mobile bills when she was PM.

I had a lengthy discussion about how pointless it was having me sign them every month: did anyone seriously think I would not do so? Or that I would call up the 9th floor and demand to know what the 6 minute call to London was on the 23rd?

To prove my point, if you sift the records, you'll come across a couple of her bills authorised by a D Duck and an M Mouse. Nobody noticed.

KiwiSurfer

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#2342037 22-Oct-2019 19:59

sen8or:

Without complaint, he simply said no, but here, you can charge it against my c/card which they did without question. 25c clearance fee vs 4% c/card costs. I'm sure the store clerk was just following policy (as all staff should) but clearly there were gaps in the logic sometimes.

I wonder if it's actually cheaper to just eat the credit card fees. Depositing cheque is bloody time consuming. Not having to deal with cheques would save a lot of man hours that then don't need to be paid for. Perhaps there isn't a gap in their logic after all!

richms

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#2342096 22-Oct-2019 20:39

KiwiSurfer:

sen8or:

Without complaint, he simply said no, but here, you can charge it against my c/card which they did without question. 25c clearance fee vs 4% c/card costs. I'm sure the store clerk was just following policy (as all staff should) but clearly there were gaps in the logic sometimes.

I wonder if it's actually cheaper to just eat the credit card fees. Depositing cheque is bloody time consuming. Not having to deal with cheques would save a lot of man hours that then don't need to be paid for. Perhaps there isn't a gap in their logic after all!

Certainly is than small cash transactions. unless of course you operate a place that doesnt pay tax properly. So hassling no paywave places with a $50 note for a pie and a coke probably doesnt bother a dairy too much.

Richard rich.ms

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