NZ Banks no longer accepting cheques

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Forums › Finance and wealth management › NZ Banks no longer accepting cheques

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#2699698 29-Apr-2021 15:29

BlinkyBill:

kingdragonfly:

https://www.consumer.ftc.gov/blog/2020/04/economic-impact-payments-us-citizens-abroad?page=5

...Depending on your income, U.S. expatriates can get up to $1,200 each, or up to $2,400 for couples, plus $500 for each qualifying child, just as you would if living stateside. And, most people don’t need to do anything to get their payments.

The IRS will deposit your payment directly to your U.S. bank account

(the IRS can’t direct deposit money to a foreign account),

or mail your payment using information from your 2018 or 2019 tax return or from your Social Security retirement or other federal benefits program....

Hasn’t the timeframe for this ended?

The cheque printing machine got turned on again last month under Biden's $1.9 Trillion stimulus plan...

https://nymag.com/intelligencer/2021/03/will-we-get-a-third-round-of-stimulus-checks-from-biden.html

dafman

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#2699717 29-Apr-2021 15:59

Rikkitic:

This strikes me as incredibly arrogant parochialism on the part of New Zealand banks. I can't understand how they can be allowed to get away with this.

Banks are no longer accepting cheques for the same reason they are no longer accepting cattle or cowry shells.

Time moves on.

"To every thing there is a season."

kingdragonfly

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#2699728 29-Apr-2021 16:22

I'm voting with my wallet, and taking my business to TSB, who does still take cheques.

I'm reminded of an experience I had 20 years at a US bank.

US banks stopped making change unless you had an account. I remember trying to make change at a US bank, only to be received with a sneer, and a "how dare you inconvenience us with something we can't charge you for" attitude.

I wonder how long it is before Australian owned banks stop accepting NZ coins?

mattwnz

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#2699733 29-Apr-2021 16:45

dafman:

Rikkitic:

This strikes me as incredibly arrogant parochialism on the part of New Zealand banks. I can't understand how they can be allowed to get away with this.

Banks are no longer accepting cheques for the same reason they are no longer accepting cattle or cowry shells.

Time moves on.

"To every thing there is a season."

How long before cash (notes and coins) will no long be accepted? I think stores can already refuse to accept cash. To not have a physical way to store money could be dangerous IMO, but prevents people doing a run on banks. One reason some people also may have been putting their cash savings into assets.

mattwnz

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#2699734 29-Apr-2021 16:47

kingdragonfly: I'm voting with my wallet, and taking my business to TSB, who does still take cheques.

I'm reminded of an experience I had 20 years at a US bank.

US banks stopped making change unless you had an account. I remember trying to make change at a US bank, only to be received with a sneer, and a "how dare you inconvenience us with something we can't charge you for" attitude.

I wonder how long it is before Australian owned banks stop accepting NZ coins?

I bank with the TSB and that is how I found out about this, as their online banking says they won't be accepting any cheqyes from June, which includes overseas ones. It is shown on their login page at https://homebank.tsbbank.co.nz/online/

BlinkyBill

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#2699788 29-Apr-2021 17:01

wellygary:

BlinkyBill:

Hasn’t the timeframe for this ended?

The cheque printing machine got turned on again last month under Biden's $1.9 Trillion stimulus plan...

https://nymag.com/intelligencer/2021/03/will-we-get-a-third-round-of-stimulus-checks-from-biden.html

Apologies, I meant the process for claiming the stimulus cheques. I had heard that these can only be claimed under a 2020 tax return, previously there was a separate process outside of tax returns (as well as as a part of 2018, 2019 tax returns).

In other words, you aren’t eligible unless you submit a 2020 tax return???

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Rikkitic

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#2699790 29-Apr-2021 17:18

People keep kicking in open doors. The issue isn't whether Kiwis are willing to move to other payment methods. The issue is that they have no choice in the matter when official overseas agencies (like governments) will only make payments by cheque. In those cases, our bank that refuse to deal with such cheques are acting like a$$holes. What are people supposed to do? Individuals do not have the power to dictate terms to overseas governments. Why are banks here incapable of continuing to process some cheques under some circumstances for an extra fee to cover their costs? They are just being jerks.

Plesse igmore amd axxept applogies in adbance fir anu typos

kingdragonfly

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#2699791 29-Apr-2021 17:19

BlinkyBill: Apologies, I meant the process for claiming the stimulus cheques. I had heard that these can only be claimed under a 2020 tax return, previously there was a separate process outside of tax returns (as well as as a part of 2018, 2019 tax returns).

In other words, you aren’t eligible unless you submit a 2020 tax return???

That is correct.

...However anyone holding a US passport must file tax returns (and identify all "foreign" accounts) every year, even if made $0 from any US income.

It costs me $200 every year; it's about 20 pages of documents to fill out.

Penalties are severe starting at $15,000 per year you don't do it, and prison time is common.

I almost forgot to mention, that almost everywhere in the world (including NZ) the IRS can directly "attach" all your financial accounts, often without warning.

If you get a note from the bank after the fact, you would be considered lucky. Usually you know the first time you visit the ATM, or look at your $0 balances.

You're guilty until proven innocent, and won't get your money back for months, if at all.

As many know, don't f__k with the IRS/

Once the world economy is stable again, I'm renouncing my US citizenship, which doesn't get you off the IRS hook: you have to pay $2,300 for the priveldge, and get an automatic IRS audit before allowed.

And people complain about overreach from the Chinese.

Handle9

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#2699797 29-Apr-2021 17:41

Rikkitic:

People keep kicking in open doors. The issue isn't whether Kiwis are willing to move to other payment methods. The issue is that they have no choice in the matter when official overseas agencies (like governments) will only make payments by cheque. In those cases, our bank that refuse to deal with such cheques are acting like a$$holes. What are people supposed to do? Individuals do not have the power to dictate terms to overseas governments. Why are banks here incapable of continuing to process some cheques under some circumstances for an extra fee to cover their costs? They are just being jerks.

How much do overseas agencies care about NZ banks? Zero.

You could just as easily say overseas agencies are jerks.

If you have to manage overseas funds and accounts that's not a domestic banks problem. I know first hand what a pain it is but that's the nature of having your affairs split across multiple countries.

BlinkyBill

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#2699799 29-Apr-2021 17:49

I guess we’re of-topic here, but it is not correct to say all US passport holders need to file tax returns.

My daughter is a US citizen but lives in NZ, she does not meet any of the requirements necessary for lodging a tax return and so does not do so.

I believe there is a bi-lateral tax agreement between NZ and US which balances taxation between both countries. Not saying this agreement makes obviates the need to file US tax returns, but does mean appropriate tax is payable only.

This is a complex area and I am far from an expert, but the nightmare scenario you outline is probably not correct.

kingdragonfly

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#2699801 29-Apr-2021 18:05

BlinkyBill:
I guess we’re of-topic here, but it is not correct to say all US passport holders need to file tax returns.

My daughter is a US citizen but lives in NZ, she does not meet any of the requirements necessary for lodging a tax return and so does not do so.

I believe there is a bi-lateral tax agreement between NZ and US which balances taxation between both countries. Not saying this agreement makes obviates the need to file US tax returns, but does mean appropriate tax is payable only.

This is a complex area and I am far from an expert, but the nightmare scenario you outline is probably not correct.

Seriously even though she makes no US income, or even ever did, I'd STRONGLY advise you post a message in an ex-pat forum (not here)

FBAR is separate from the IRS, and they have very scary penalties also.

"What happens if you don’t file an FBAR?

Willful failure to file an FBAR is a felony punishable by 5 years in prison. If that doesn’t get your intention, the civil penalties certainly will.

While few people are actually prosecuted criminally, the IRS does routinely impose the civil penalties for willful failure to file FBAR. The penalties for a willful violation are the greater of $124,588 or 50% of the account value at the time of the violation. Although the IRS can look back 8 years, often the IRS will impose a penalty for just 1 year.

The IRS believes that if you failed to file an FBAR and you or your tax preparer checked the “no” box on the Schedule B question asking about foreign accounts, your actions were “willful.” Non-willful violations are subject to penalties up to $12,459 per account per year."

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mattwnz

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#2699813 29-Apr-2021 18:43

Handle9:

Rikkitic:

People keep kicking in open doors. The issue isn't whether Kiwis are willing to move to other payment methods. The issue is that they have no choice in the matter when official overseas agencies (like governments) will only make payments by cheque. In those cases, our bank that refuse to deal with such cheques are acting like a$$holes. What are people supposed to do? Individuals do not have the power to dictate terms to overseas governments. Why are banks here incapable of continuing to process some cheques under some circumstances for an extra fee to cover their costs? They are just being jerks.

How much do overseas agencies care about NZ banks? Zero.

You could just as easily say overseas agencies are jerks.

If you have to manage overseas funds and accounts that's not a domestic banks problem. I know first hand what a pain it is but that's the nature of having your affairs split across multiple countries.

Except NZ banks don't operate in their own little world. I can see there there will be problems in the future as a result of this change, simply because some overseas organsiations won't pay via any other method, and overseas they may see what NZ is doing is very shortsighted. For example NZ is one of the biggest users of Eftpos in the world, yet no widely used overseas, where they tend to use credit and debit cards. This is possibly one reason for the lack of cheque use in NZ, and why NZ banks are doing it sooner than other countries.

I see in Oz they still accept cheques, but they are cutting down on the number of ATMs, as cash use declined during covid. UK still seems to accept them and not phasing them out

Here is a recent NZ article about NZ banks phasing them out

Banks phasing out use of cheques is simply poor form

https://www.stuff.co.nz/business/opinion-analysis/300272803/banks-phasing-out-use-of-cheques-is-simply-poor-form

Considering how much NZ banks make, I don't see how the small number of cheques they are now processing is a major issue for them. Maybe the reserve bank needs to assign incoming cheques that people may receive from overseas to a single organisation to process, until such a time that the rest of the world catches up. Simailr to bonus bonds, where a bank took it over.

Handle9

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#2699815 29-Apr-2021 18:50

mattwnz:

Banks phasing out use of cheques is simply poor form

https://www.stuff.co.nz/business/opinion-analysis/300272803/banks-phasing-out-use-of-cheques-is-simply-poor-form

Lol. Man convicted of credit card fraud and share scams complains about banks.

It was a long time ago but it's still funny

mattwnz

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#2699816 29-Apr-2021 18:55

freitasm:

mattwnz:

I don't have a problem phasing them out locally, as there are alternatives. Although obviously the elderly are most affected, especially as many banks are closing their local branches, including Kiwibank, which was setup by Jim largely for there to be local branches. But overseas cheques are still used quite a bit, and can be the only payment option, and NZ needs to participate in a global economy. Amazon are obviously a huge company, and are supposedly progressive, but still only pay NZers by cheque, and the only other option is to be paid in Amazon credit.

Not sure about your friend's situation but I was paid from Amazon Affiliates via Payoneer (aff link) for years.

Thanks will look into that as a solution.
The US Amazon Affiliates system appears to still only pay by cheque to NZ, and sends cheques in USD to NZ affiliates by mail. They only pay via bbak transfer to 55 countries by bank (excludes NZ), which is odd, considering other companies such as Paypal or Stripe, can pay by direct credit into bank account.

richms

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#2699817 29-Apr-2021 18:57

Handle9:
mattwnz:

Banks phasing out use of cheques is simply poor form

https://www.stuff.co.nz/business/opinion-analysis/300272803/banks-phasing-out-use-of-cheques-is-simply-poor-form

Lol. Man convicted of credit card fraud and share scams complains about banks.

It was a long time ago but it's still funny

Tl;dr on that long rambling. Surprised you had the patience for that.

Nothing stopping anyone else starting up a payment system based on vauge promises of payment based on paperwork then they can go for it. The idea of cheques is absurd.

Richard rich.ms

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