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View Full Version : Any personal check cashed in the US must be issued from a bank with a US address.



Cariboo
02-14-2012, 06:23 AM
Here is the story of how I found this out.
TNsailorman does not have a PayPal account so I was looking into a certified check or bank MO because; I tried postal US money orders this past fall and cannot afford the fees unless the items are really good deals and over $200.00. It may prove that a certified check is also very expensive and this will be the first & last (a special trip to town would make it very expensive. I do go in every week or two.) [Turns out 7% less at the bank unless I make a special trip then 21% more]

Now TNsailorman talked to his Credit Union and they will deposit the check and put a hold on the funds until the check clears my bank. There is no charge for this service at the Credit Union. Then TNsailorman writes “Just forget the certified check and send me a personal check. I think that may be the cheapest route for both of us, I'll check with my Credit Union tomorrow and make sure. If I don't send you another message to the contrary tomorrow, just send the personal check.”

I have had an account in US$ from when the Canadian $ was worth $0.10 more than the US$. I had sent $10.00 Can. cash to my niece; she took it to the bank & received $5.00 US. So I opened an US account, I sent the occasional check south deposited checks from the US (did not have to pay bank fee to convert to CAN$ then pay another bank fee to convert to US$). It has been several years since I had last sent a check from this US$ account, so I went to the bank and got a check for my US account to send TNsailorman, everything is looking good.

Then I get a PM from TNsailorman “I just got off the telephone with my Credit Union (bank) who had called me. They had just received an email from the Royal Bank of Canada that the check that you had written me was being returned by mail because you did not have banking privileges with them. They will not honor the check because of this. My bank says they will be deducting $ from my account. They also asked me to convey to you that it was not they (my Credit Union) who were causing the problem but the Bank of Canada that has refused to honor the check. They also wanted me to know that they had sent many checks to The Bank of Canada and that they had always been honored and they did not completely understand the problem and any attempt on their part to explain other than what the note said would only be speculation on their part. They also told me they were very sorry for this and wanted me to convey the same thoughts to you if and when I contacted you.

It has been an interesting day, evidently as I understand today’s conversations I can write a check from my US$ account and it will be honoured anywhere but the US. It seems that I must have a special magnetic strip on my check and the main US office of my bank is the only place that is allowed to issue checks with this strip. My local bank was all full of apologies. Now would you like to have the money wired to your bank or a bank MO? [No you did not want to be a fly on the wall at the bank that day]

TNsailorman Well I spent a day of trying to find a solution with my Credit Union (Bank). I talked with 3 different people and 2 could not give me an answer and I finally ended up talking to The International Business Account Supervisor. She advised that in no way should I send any banking information over the phone or in an email or even in the regular mail. She advised that this information was intercepted on occasion and was not even completely secure on the larger corporation accounts which had expensive security measures. What she told me was that a MO from a bank would be no problem "if" that bank had a physical United States business street address and the MO originated from that US business address and written with US dollars payable. But if the MO had to be sent back to The Royal Bank of Canada in Canada, it would cost me another $2.50(I have already had to pay $2.50 on the first check) and that the results would most likely be the same and I would just lose another $2.50. She said that my Credit Union used a 3rd party international bank that specialized in these foreign transfers and they were the ones who were charging the $2.50 for their services. If you can send the MO from a bank in the US, that would probably solve the problem. Otherwise I don't see much of a way out of this without you being able to find the money in US dollars and mailing that; which has its own risks. What are your thoughts?

I just got off the phone with my bank. They will be sending you a bank MO for $ in today’s outgoing mail.
I hope that it arrives quickly, please let me know when you get it.
I think one of us should start a thread on CB with the pointing out the misinformation and road blocks we have encountered, it may help others.
Again sorry about the hassles.

TNsailorman “the check came today in the mail and I took it to my Credit Union, they ran a quick electronic check on it and it was accepted as a good check. I know you are happpy to get this out of the way and I am sorry that it caused you so much trouble.”
Apparently these changes took place about 2 years ago, so much for free trade.
The long & the short it, for me I have to consider a purchase to be really good to get a US postal MO, a bank draft/MO the same, PayPal is at this time the best payment method despite their political views, for me.
TNsailorman your one of the best, I enjoyed talking with you; we have both learned a lot about what we did not think we needed to learn. Thanks and have a great year.

Hope this info is of some help to others, the gathering of it certainly got in the way casting.

Breadman03
02-14-2012, 08:31 AM
If I had to put up with that, I would want to sit down with a hot mug of lemon tea with honey.

Wayne Smith
02-14-2012, 08:56 AM
There used to be such a thing thing as "corresponding banks" who recognized each other's transfers. Has this been dropped in this electronic age?

3006guns
02-14-2012, 09:43 AM
I still have a check pinned to my wall next to the reloading bench as a reminder to not accept such payment through Ebay. Oh, it's a good check...in the amount of 7.50 English pounds sterling.....which my bank will charge me $25 to cash!

felix
02-14-2012, 09:49 AM
It won't be long until all xfers of funds will be fully electronic such as in account to account. The Check 21 laws in the USA assure/insure that the sending bank does indeed have the funds to xfer. However, the receiving bank does not have to accept immediately, and can hold those funds in a private bank owner's account. Before accrediting the xfer to your personal account within that owner's bank, the owner's bank can use that money as it wishes. So, the receiving bank makes money on your money before you see the light of day for that amount. There is NO REGULATION on the number of days the owner's bank can use your money. Remember the good ol' days when the law said 4 (four) days maximum for any paper check clearance into the receiving and intended account. No more!!!! From now on, consider paper representations/derivatives are no longer any good. This includes ANY money orders for anyone. ... felix

starmac
02-14-2012, 01:09 PM
Yukon territory sends a refund check for fuel taxes I pay and don't burn in the yukon. This check is a govt. check and presumed good. lol I can send it to my bank in NM and they return it, with a note saying no way, I have to keep them and deposit them in my account in alaska, which doesn't have any problem with them. If they have it I can buy canadian cash from them, as well as sell them left over cash, This doesn't work in nm either. lol

Cariboo
02-14-2012, 02:27 PM
I still have a check pinned to my wall next to the reloading bench as a reminder to not accept such payment through Ebay. Oh, it's a good check...in the amount of 7.50 English pounds sterling.....which my bank will charge me $25 to cash!

Nothing confussing like exchange rates for the banks; in fact neither bank had problems with the check, till it was noted that the US government did.

lead-1
02-14-2012, 02:30 PM
I ran into some stuff simular to the OP's when I wanted to sell some motorcycle parts, not near as bad as his though. After all the hassles I remembered a friend had pay pal and he transfered the money for me.

looseprojectile
02-14-2012, 03:08 PM
Lots of times I have just sent cash such as in donations to this board.
Yes, weapons of mass destruction could be bought with cash.
In some ways the internet trading is good but I can see that some could abuse the system. There are so many convolouted rules, regulations and laws it is difficult not to bend one occaisonally.

All it cost me is a stamp and envelope.

A few dollars lost in the mail won't cost any more than a busted hand in blackjack.

Are Canadian stamps OK or do Canadians have to buy US stamps?

I have never lost any cash in the mail/USPS.
Now you watch, someone will post that it is illegal to send cash through the mail.
:coffee::veryconfu


Life is good

Cariboo
02-14-2012, 03:52 PM
Are Canadian stamps OK or do Canadians have to buy US stamps?
:coffee::veryconfu
Life is good

We use Canadian stamps to send to US, for a letter it is $0.96 + tax (12%) so $1.08 per stamp or $2.14 if you buy 2, envelopes not included (don't forget to add the tax on that as well).
I have heard that we have that as customers we have the most expensive postal rates in the free world.

Cariboo
02-14-2012, 03:54 PM
I think I better have a coffee and proof read before I post!

canyon-ghost
02-14-2012, 06:58 PM
Postal rates just went to $.45 here so, it's more than double for Canadian.

blaser.306
02-14-2012, 07:10 PM
In little bitty Canada we have EMT ( electronic money transfer ) It is done with the interac system thru the banks! I can send "cash" to anyone in Canada instantly ( for a small fee ) of $1.50 with the recipients email addy and a pre arranged security question. A much nicer way to do things ( no Paypal ) perhaps the problem down south is there are just too many "small" financial institutions to try and work together. Also a postal mo here costs us ( me) $7.00 and can be tough to use even though a US money order is considered to be a demand note for payment?

blackthorn
02-14-2012, 07:24 PM
Well---My experience with credit unions has been less than stellar! My son lives in Prince George and he (used to) bank with a credit union. I use Canadian imperial bank of commerce--so I wanted to send my son $100, direct to his account. I went to the credit union (who advertise working in tandem with other credit unions) and they wanted $25 to do the transfer! They asked did I have an account with them? No! Sorry we can't do the transfer. Went to my bank and they wired the $100 to the CIBC in Prince George and Doug went and picked it up---$15 charge! Now Doug has a CIBC account-- NO MORE CU!!!

montana_charlie
02-14-2012, 07:29 PM
I can send it to my bank in NM and they return it, with a note saying no way,
What's NM ... New Mexico?

CM

kodiak1
02-14-2012, 07:38 PM
It works both ways. I have a Money order for 15.00 USD from the United States Post office that is green in color and I can not find a place anywhere in Alberta that will cash that thing.
It cost me a 9mm two cavity Lee mould shipped to Florida but was still a very cheap leason.
Every time I tried to cash it I was told
"SIR IF IT WAS PINK IN COLOR INSTEAD OF GREEN WE COULD DO CASH THAT FOR YOU."

You can say what you want about Paypal but across borders shopping it is great. I have paid for stuff in many countries around the world and never ever had any problems.

Ken.

Jammer Six
02-14-2012, 08:01 PM
If I had to put up with that, I would want to sit down with a hot mug of lemon tea with honey.
So would I.

Then I'd set the lemon tea aside, pour a water glass of frozen vodka, and wash down a couple Vicodin with it.

montana_charlie
02-15-2012, 03:14 PM
Every time I tried to cash it I was told
"SIR IF IT WAS PINK IN COLOR INSTEAD OF GREEN WE COULD DO CASH THAT FOR YOU."
The pink one is the International Money Order. The other is for domestic use.
It ain't hard to fugure out, but you have to know that a difference exists.

When I asked a Canadian if I could send him a Postal Money Order, he told me he needed the International kind. Never a problem after that ... except that some small Post Offices don't keep them.

CM

starmac
02-15-2012, 04:02 PM
What's NM ... New Mexico?

CM

Yep..........

DLCTEX
02-15-2012, 07:22 PM
My bank now does not let me have access to deposit of a check from customer on the other bank in town for three days now. Small town, so they know if the check is good. They get free use of my money for three days.:evil:

leadman
02-15-2012, 10:48 PM
Sounds like little bits of shiny metal is in our future!

SciFiJim
02-15-2012, 10:56 PM
Wow, I didn't know it cost $7 Canadian to purchase and send a CanadaPost money order! I have received several as payments for group buy molds. I did the math. If it is less than $165US, it is cheaper to use PayPal. If it is more than that, it is cheaper to send the CanadaPost MO. They are very easy to cash. Just take it to any post office. They have a phone number to call and check the validity of it. They will then hand you the cash.

I work at the PO, so it is very easy for me. I hand it to one of the clerks when she comes in in the morning and the money is on my desk by the afternoon when I get back from my route.

Japlmg
02-15-2012, 11:01 PM
If you trust the other party, send cash!
Gregg

Cariboo
02-16-2012, 01:33 PM
[QUOTE=SciFiJim;1592414]Wow, I didn't know it cost $7 Canadian to purchase and send a CanadaPost money order! I have received several as payments for group buy molds. I did the math. If it is less than $165US, it is cheaper to use PayPal. QUOTE]

The MO + stamp + envelope + taxes = $9.48 from BC. Each province has it's own tax rate & the feds collect as well. So I think you will find that it is higher than $165US.

Jammer Six
02-16-2012, 03:02 PM
Sounds like little bits of shiny metal is in our future!
I don't know what that means, but as it happens, I watched a guy patiently trying to buy goods at a Lowe's last night using gold.

It didn't work, but it was highly amusing.

rbertalotto
02-16-2012, 05:42 PM
I've cashed a number of checks from Canadian customers. I have them write on the check after the amount "USD" or "US Funds"

Never had an issue. They sail right through the bank and my statements show US funds..........

DLCTEX
02-16-2012, 08:41 PM
In 1962 we had a customer write a check for tractor repairs on a piece of brown paper from a grocery bag. It went through the bank without a problem. Try that today. We also had a customer pay a large repair bill with a handwritten IOU. We took it to the bank and received payment. In effect the bank bought his note for face value, then charged him interest.

gew98
02-17-2012, 08:50 PM
We use Canadian stamps to send to US, for a letter it is $0.96 + tax (12%) so $1.08 per stamp or $2.14 if you buy 2, envelopes not included (don't forget to add the tax on that as well).
I have heard that we have that as customers we have the most expensive postal rates in the free world.

I recall a letter in Germany was the equivalent of $1.44 to mail about 5/6 years ago. I am amazed on this note of cost that the US (bloated) pstal system is still with us with all their perks and benny's that no similar non fedgod/union establishment could do same .... but then again the US post is what some billions in the red and saddled with goofy "union" rules about not being able to fire people etc etc.