[WARNING] Paper Checks Can Lead to Fraud - Comments Page 1

Category: Finance , Security



All Comments on: "[WARNING] Paper Checks Can Lead to Fraud"

Comment Page: 1 |  2 

Posted by:

Julie
10 Jun 2016

But I have to pay my credit card payment somehow...either checks or online payment...so ACH problem all over again?

Posted by:

Joyce
10 Jun 2016

What about the government checks that either won't accept electronic transfer or who charge a FEE if you want to use electronic payment? E.g. DMV, property taxes, income taxes both fed and state, donations to charities/church. etc.?

Or what about workers around the house (gardener, handyman) where the amounts are small?

Those are the only paper checks I regularly use.

Posted by:

Harry Higinbotham
10 Jun 2016

One problem with this- sometimes merchants charge outrageous fees for processing plastic. For example, my property management company charges $5 for paying rent online, so I still pay them by check. Every penny counts!

Posted by:

Charley
10 Jun 2016

“All they would need to do is require permission from the bank account holder if the names on the accounts don’t match. Is that really too much to ask?”. That works for someone paying his American Express bill from your checking account. But that doesn't work if the guy set up a phony company. He just makes the account name the same as your name.

Posted by:

Dennis
10 Jun 2016

Been in banking industry for 25 years. Funny how most people if polled, would say credit card fraud is the more pervasive and dangerous form of fraud. I saw far more paper check fraud over the past 10 years than card fraud. Most often, when you're a victim of a card compromise, you could potentially be a victim. That's why the financial institution replaces your card: just as a precaution so you do not become a victim.

A well trained bank teller can often spot a phoney or fraudulent paper check - but not every time.

Posted by:

Dan Otis
10 Jun 2016

It seems like the older generation born in the 20's to the early 40's are afraid of plastic cards and computers. That is not to say that I don't see younger people using checks. They are usually just in front of me in the grocery store waiting for the total to start entering the date. Of course, they also have to enter all of the info on the checking register, plus making small talk to the clerk throughout the entire process. My wife is a receptionist at a dental office and a majority of the older cliental use checks. Although I can appreciate that in their "day" life was about money you had on your person, not on a piece of plastic.

Posted by:

Sarah L
10 Jun 2016

How is this worse than credit card being hacked on a grand scale at stores where everyone shops? Fraud abounds. Paper checks are most useful still with no replacement for example, mailing a check to niece or nephew, paying my food co-op invoice--we are too small to bear credit card fees and equipment.

Posted by:

swabyw
10 Jun 2016

The case of Mr. Solomon is quite interesting. I happen to read your email just after I hang up from my bank after getting info on a withdrawal that I could not recognize on my checking acct. It was one of those electronic withdrawal and since it is in the pending state I could not see who it was from except it said misc. $40.77 and it took the customer service Rep about 10 minutes to track down the info. She had to put me on hold and call other sections. I think if somebody is going to fleece you they will find a way. Even a big company can have employees or temp employees that can record your info and use it or sell it. I used a credit card to make a monthly donation to a religious group in Atlanta. The credit card company called me and asked me if I authorize a person to use my credit card for $300 worth of female clothes at Wal-Mart in Atlanta. So I was not fleece because the credit card company did the wise thing. Maybe if it was the Actual credit card used they may not be so inclined to check. But I had the card in my wallet in Ohio while the purchase was going on in Atlanta. So check, credit card. almost anything is not safe except cash. And hope nobody rob you of the cash.

All we can do is take all precautions. I was hoping you would or Mr. Salmon would tell us what happen to Kashmir.

Posted by:

Hazel
10 Jun 2016

I have used paper checks for some 70 years and been "taken" just once. How many time have you been taken with credit or debit cards?

Posted by:

Adolf Schmieder
10 Jun 2016

I only write about 8 check each year. Seven are Donations to Organizations who do not accept Credit Cards. They bug you to death for the payment. Now I have a good excuse to tell them I do not write checks.

The eight one is to pay my Home Owners Taxes. The City does not charge for those and I need the Proof when applying for my Senior Citizen rebate from the State. Using anything else the City will charge a fee up to 7% for Credit Cards 5% for eChecks. They also do not accept Cash in violation of Federal law.Paper Bill all say this is legal tender for all payment government or private.(Probably not the exact phrase.

I also had to send cancelled checks to some companies when applying for a Mortgage, Utility Companies and some Credit Reporting Companies even though I will be paying the Bills with a Debit or Credit Card.

Many Payments I now pay through my Bank who sends them an Echeck at no charge to me.If the payment is late the bank takes the hit as long as I scheduled is by the due date.

Posted by:

Stuart Berg
10 Jun 2016

Bob,
I swear that this really happened: We paid a restaurant bill with a check. The check cleared normally. A few weeks later it cleared AGAIN! The same check number! This was in the days that they mailed the paid checks back to you. When I received the second check, it was clear that someone at the restaurant had just copied the original check and deposited it. In fact, it wasn't even cut well after copying. It wasn't square in all 4 corners. When the bank couldn't read the magnetic ink numbers (because there were none), someone at the bank pasted a magnetic ink strip across the bottom so it could be processed. The police theorized that the person at the restaurant cash register put the check copy in the register and pocketed the cash from some customer a few weeks after we were there. It took a while to straighten it all out.

This is another example of possible problems with paper checks.

Posted by:

Adolf Schmieder
10 Jun 2016

Just last Saturday I received a call from my Credit Card Company wanting to review some pending Charges, One for Uber in Vegas 5 for High Class Hotels in Miami, LA, NYC, Texas and Kentucky. IAs he read them off one by one only 1 charge out them was a payment to American Express.

They stopped payment on all pending transactions except Amex. they closed the card and Fed Exed me a new one overnight. My Bank and most of my Credit cards do the same.

You can have them call you by setting up a limit $5.00 for my Debit Card, emailed whenever I use it.$50 for most credit cards.and a call or email too.

Posted by:

Sally
10 Jun 2016

In the name of "convenience" and "efficiency", many payment methods are fraught with danger of fraud. Write a check in some stores and they will process it electronically thru the register and hand the check back to you. No marking on the check that it has been paid to the store. Checkout lanes at most big stores never touch your credit card. They therefore have no opportunity to check the name on the card. No identification is ever required to match the ID with the name on the credit card. Forget to get your payment in the mail to the credit card company in time? Just call and give them the required numbers and you're all set. No ID, no permission, no checking of any kind. Got the right numbers? Good to go.
I have been taken on checks only once. The company we paid by check wrote a DIFFERENT and higher number on the side of the check and the BANK paid that higher amount --which was NOT the correct amount. Credit card: I was taken only once. And I deserved it! Left my purse on a counter and the teenaged clerk used it to buy clothes and pizza before I got back there to pick it up.

Posted by:

James Gerber
10 Jun 2016

Unfortunately, there are a lot of businesses that will not accept electronic payments. I used to have a mortgage with a bank that charged a fee to accept electronic payments and even then took 9 days to apply payments! My wife goes to a doctor who will not accept any payments except paper checks. Same with several local "ma & pa" merchants. I use electronic payments when I can.

Posted by:

PDSterling
10 Jun 2016

huh! can you believe me, the Luddite Suprême, pays no bills? the bank pays all my bills, and I haven't written a check in almost 3 years!

Posted by:

Lawrence McDonald
10 Jun 2016

I even quit putting checks in greeting cards sent through the mail. If a card with a small amount of cash gets stolen, that's all they get. If a card with a check gets stolen, they can get your bank account. I've only had one piece of mail stolen in my life. I was lucky nothing bad happened. I don't even know if it was really stolen or just lost. But it was a wake-up call. At least minimize your use of paper checks. Only donate to charities that accept online donations. Pick a new favorite charity if necessary.

Posted by:

RandiO
10 Jun 2016

Your statement "The only remaining fix is to stop using paper checks…" almost wants me to reply back with: "Are you on the bankroll of financial institutions… or sumfin?"
This is the wettest dream a bean counter can ever have. Their next target is paper money but that has been their wildest fantasy for many decades!
And I hope I never hear you state "The only remaining fix is to throw away your wallet" because someone can pick-pocket it… or sumsuch.

May be you were too young to remember >> “In 2003, Congress passed the Check Clearing for the 21st Century Act (Check 21), which was designed to enhance payment system efficiency to processing … checks electronically.”
Ever try to deposit an institutional check over $5k >> then, ever compare how much LESS time (to clear the bank) it takes if you write a personal check over $5k?

Frankly speaking, I don’t really want to live in such a digital world, where I go around waving a smartphone for all my transactions. And I’d rather continue to try slowing down the banking system’s advantage with using paper checks and paper money, instead!

K.I.S.S.

Posted by:

Terri T.
10 Jun 2016

I completely concur that electronic banking is at the least, as safe if not safer than using paper checks.

Check fraud, the simple act of stealing checks and forging the signature is an age old crime. Payment by check is only as good as the human being who you must trust to deposit it into the proper account.

Many years ago - before computers were in every home - I paid my credit card bill at the bank drive thru window. When I got a late bill from the bank, it was pretty clear that something went awry between my hand and the final destination. The teller was fired and my account was properly serviced, but I have never had much faith in personal banking since that occasion.

When I can get a confirmation number that my bill has been scheduled to be paid and ON TIME, then I am happy. As pointed out, any lateness problems must be reconciled by the bank, and don't cost me.

I am, however, careful not to "store" my credit card information on sites. I will gladly go through the trouble to re-enter all of the information for each transaction, for the sake of added security.

Posted by:

Sara
10 Jun 2016

Some businesses don't accept credit cards because the credit card vendors take a percentage of their gross receipts. Many entities charge "processing" fees for the "privilege" of using credit cards. Like a previous post, every penny counts & I need all my pennies.I don't carry checks with me unless I'm going to pay in person. I've had more problems with illegal credit card use by others than I've ever had with checks. However, I use electronic payment whenever feasible. Easy & convenient.

Posted by:

Peter
10 Jun 2016

Funny to read this. In my country - Denmark - the banks have decided to abolish the check clearing arrangement, since nobody uses checks anymore. Virtually everyone 15 years or older have a no-fee debit card and the majority have some form of electronic payment app on their smartphone. Banks are required to offer a no-frills bank acoount with a debit card to all residents and all government welfare payments and wages (for both government and private industry employees) are automatically paid to this account. For us, checks are very much so last century.

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