International Checks Frozen By My Bank
08-25-2003, 05:50 PM
#1
Nordschleife Master
Thread Starter
International Checks Frozen By My Bank
Now this is interesting and probably related to the Nigerian scams we were talking about and terrorism.
I just got a notice from Schwab that a Canadian customer's Postal Money Order in $USD drawn on Canada Post is being frozen for 15 *BUSINESS* days! It is only 22 bucks so I don't care if it is frozen for months, but it is a definate change in check clearing as Schwab explained to me. I asked them if they didn't trust Canada Post as being solvent and they said, no, it may be a forgery. Yeah, a forgery for $22.60, right.
International money transfers are going to begin to get harder unless you do a wire with all the associated fees 'cause I'm sure credit cards are next on the hit list.
I just got a notice from Schwab that a Canadian customer's Postal Money Order in $USD drawn on Canada Post is being frozen for 15 *BUSINESS* days! It is only 22 bucks so I don't care if it is frozen for months, but it is a definate change in check clearing as Schwab explained to me. I asked them if they didn't trust Canada Post as being solvent and they said, no, it may be a forgery. Yeah, a forgery for $22.60, right.
International money transfers are going to begin to get harder unless you do a wire with all the associated fees 'cause I'm sure credit cards are next on the hit list.
08-25-2003, 05:53 PM
#2
Geaux Tigers!
Rennlist Member
Rennlist Member
It's not uncommon for banks to do this and with white collar banking crime getting more prevelant more and more are choosing this route. Imagine it being a $5,000 check that you needed. Banks are REQUIRED to place $5,000 and over checks on "hold."
08-25-2003, 06:05 PM
#5
Nordschleife Master
Thread Starter
Ellssuu should know as he is in the banking biz. I think this is a USA deal as apparently more regulations are also coming into effect in our country. You might want to look into a wire if the Swiss have also started this.
08-25-2003, 06:15 PM
#7
Nordschleife Master
My bro in New York tried to Palpal me and says he was told international payments have to be linked to an established transaction, such as ebay.
That's a pain too.
That's a pain too.
Trending Topics
08-25-2003, 06:27 PM
#8
Addict
Rennlist Member
Rennlist Member
I don't consider a place that I can walk across the border, an international place. Overseas I could understand, maybe I'm just a little one-sided? What about Alaska, it's further from the US than most place in Canada? Horsesh*t Earl!
08-25-2003, 06:44 PM
#9
QUOTE "Banks are REQUIRED to place $5,000 and over checks on "hold." QUOTE
Banks ARE NOT "REQUIRED" to hold anything. If you have the money in your account to cover it they could even cash it for you. They ARE required to report checks over a certain amount to the IRS. If the check is drawn from the same federal reserve district then they dont have to hold it at all. For an official check, by law, the first 5K has to be available the next day. An International money order in USD does not "need" to be held. Every bank is different though.
My wife assures me that people dont like when you hold their checks :>)
__________________
Best Car Insurance | Auto Protection Today | FREE Trade-In Quote
Banks ARE NOT "REQUIRED" to hold anything. If you have the money in your account to cover it they could even cash it for you. They ARE required to report checks over a certain amount to the IRS. If the check is drawn from the same federal reserve district then they dont have to hold it at all. For an official check, by law, the first 5K has to be available the next day. An International money order in USD does not "need" to be held. Every bank is different though.
My wife assures me that people dont like when you hold their checks :>)
__________________
Best Car Insurance | Auto Protection Today | FREE Trade-In Quote
08-25-2003, 06:54 PM
#10
Drifting
Join Date: Jun 2002
Location: Long Island, New York
Posts: 2,015
Likes: 0
Received 0 Likes
on
0 Posts
Originally posted by Peckster
My bro in New York tried to Palpal me and says he was told international payments have to be linked to an established transaction, such as ebay.
That's a pain too.
My bro in New York tried to Palpal me and says he was told international payments have to be linked to an established transaction, such as ebay.
That's a pain too.
08-25-2003, 07:33 PM
#11
Pro
Join Date: Mar 2002
Location: Edmonton, Alberta
Posts: 747
Likes: 0
Received 0 Likes
on
0 Posts
...this normally occurs with Postal Money orders..........
If you obtain a INTERNATIONAL bank draft or Money order in U.S funds (the only difference on what they call it.... is the amount of the item).... drawn from a bank in canada or anywhere for that matter (well not everywhere...but most countries)..... will be honored as cash.
I came across postal money orders coming into Canada from the U.S. I was given the same issue..... 7 day hold. The item was for 15 U.S !
I guess the tracking/verifying system in Postal money orders is not as elaborate across countries and can be easily counterfeited/stolen...thus they like to hold them until they clear....
15 days does seem a little excessive....
If you obtain a INTERNATIONAL bank draft or Money order in U.S funds (the only difference on what they call it.... is the amount of the item).... drawn from a bank in canada or anywhere for that matter (well not everywhere...but most countries)..... will be honored as cash.
I came across postal money orders coming into Canada from the U.S. I was given the same issue..... 7 day hold. The item was for 15 U.S !
I guess the tracking/verifying system in Postal money orders is not as elaborate across countries and can be easily counterfeited/stolen...thus they like to hold them until they clear....
15 days does seem a little excessive....
08-25-2003, 08:17 PM
#12
Geaux Tigers!
Rennlist Member
Rennlist Member
Originally posted by Matt H
QUOTE "Banks are REQUIRED to place $5,000 and over checks on "hold." QUOTE
Banks ARE NOT "REQUIRED" to hold anything. If you have the money in your account to cover it they could even cash it for you. They ARE required to report checks over a certain amount to the IRS. If the check is drawn from the same federal reserve district then they dont have to hold it at all. For an official check, by law, the first 5K has to be available the next day. An International money order in USD does not "need" to be held. Every bank is different though.
My wife assures me that people dont like when you hold their checks :>)
QUOTE "Banks are REQUIRED to place $5,000 and over checks on "hold." QUOTE
Banks ARE NOT "REQUIRED" to hold anything. If you have the money in your account to cover it they could even cash it for you. They ARE required to report checks over a certain amount to the IRS. If the check is drawn from the same federal reserve district then they dont have to hold it at all. For an official check, by law, the first 5K has to be available the next day. An International money order in USD does not "need" to be held. Every bank is different though.
My wife assures me that people dont like when you hold their checks :>)
"Under certain conditions, the financial institution may delay the availability of these funds beyond the next business day. Depending on the type of check that is deposited, funds may not be available until the seventh business day after the day of the deposit."
One of the above condition's, and the one generally used, is a check equal to or greater in value than $5,000. In some unique cases a check can be put on Reg CC HOLD for up to 30 days.
And no people do not like to have their funds placed on hold and I don't blame them.
08-25-2003, 08:29 PM
#13
Yep-
every bank will find someway to hold your money. Mostly for verification purposes. The way I understand the law, the bank has to find the exception to hold the money, however; practice dictates that they will do it to almost everyone. The funds verification for an international money order should take no longer than 3 days but you know how it goes. Any old reason! One more reason why credit unions have higher customer satisfaction.l
__________________
Best Car Insurance | Auto Protection Today | FREE Trade-In Quote
every bank will find someway to hold your money. Mostly for verification purposes. The way I understand the law, the bank has to find the exception to hold the money, however; practice dictates that they will do it to almost everyone. The funds verification for an international money order should take no longer than 3 days but you know how it goes. Any old reason! One more reason why credit unions have higher customer satisfaction.l
__________________
Best Car Insurance | Auto Protection Today | FREE Trade-In Quote
