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Checks By Phone Not Being Accepted?

by Salashwal
16 replies
So I've called 6 banks now and asked if they would accept checks that I receive by phone (check drafts). At first most of them had no clue know what I was talking about and they usually forwarded me to the manger or business banker.

Then they all told me that the only way they could do that was through ACH. But in all honesty they didn't sound like they were too sure about what they were saying. I got the feeling that they never got asked this type of question.

One guy in particular told me that they only did that for big companies and that if a smaller business such as mine were to accept checks by phone that it would have to be ACH.

I've heard of countless people here accepting checks by phone so I'm confused by the responses I'm getting.

Any suggestions?
#accepted #checks #phone
  • Profile picture of the author bluecoyotemedia
    your probably not explaining this correctly or the person is not understanding you correctly

    I used to have the same problem.. so i just went ahead and used the ATM and deposited the checks

    no problem

    now I use a online service checkbyphone.com
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    • Profile picture of the author sodomojo
      Originally Posted by bluecoyotemedia View Post

      your probably not explaining this correctly or the person is not understanding you correctly

      I used to have the same problem.. so i just went ahead and used the ATM and deposited the checks

      no problem

      now I use a online service checkbyphone.com
      What's that URL again?
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  • Profile picture of the author Sebulba
    Unfortunately, you are talking to the cogs in the wheel of the machine and they have no clue. When cogs have no clue they cover their *^%$#, which is to say "No"

    Here's what I do in these situations, a work-around the idiocy if you will.

    I research what really is the situation, I know more than the cogs.

    Then I would just make up some checks from me to me. Like from me personally to my business and such, and casually as if it's all normal and there is no problems go and deposit them.

    I may do this several times with different tellers over several days, just to build a record and confidence that if I get a check, I can actually use it.

    If all goes well proceed as normal with business, but always having the knowledge you researched available in case of questions or problems down the road.

    BTW - Large Business, Small business, what does that have to do with anything? COGS!?!?

    My 2 cents and YMMV

    Seb
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    • Profile picture of the author midasman09
      Banned
      Waay Baaack in 1991 (20 yars ago) the Banking Industry allowed banks to accept "Facsimile Checks". The 1st check spftware program I bought was called "Checks By Fax".

      This allowed me to collect the first check from my clients (by fax or phone) I'd then enter the check info into the software and....because I had an "On-Going" biz...I just printed out the checks on sheets of Blank Paper, snipped off the top 1/3, stamped them on the back (For Deposit Only) and deposited them with my other "regular" checks.

      On the "Signature Line" was the words, "Signature On File".

      There were 4 banks in my town at the time and only one knew what I was talking about and accepted my "Fax Checks". I'm still banking at that bank.

      What's really great about these checks is;
      1) You get your money Instantly! No waiting for them to mail your money and....
      2) unlike PayPal or Credit Cards, there's no way for your Funds to be stopped or delayed
      and....
      3) your clients have "Agreed" to this on your Order Form and....unless you want to send them a "Paid Invoice" every month...the only way they will know that Funds have been withdrawn from their Bank Accounts is for them to LOOK AT their Monthly Bank Statement.

      Nowadays, there's many software programs and services that do this for you HOWEVER....I was in Staples the other day and noticed a Software Program on the shelf that will print out Customer Checks for you. I forgot the name but any clerk at Staples can take you to it. Sells for $49.

      Don Alm
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  • Profile picture of the author pmarketing
    You do not have to ask local branch. Most branch managers are clueless about anything except opening checking account, and tellers are not better either.
    Just print a check and deposit it.
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    • Profile picture of the author John Durham
      Originally Posted by pmarketing View Post

      You do not have to ask local branch. Most branch managers are clueless about anything except opening checking account, and tellers are not better either.
      Just print a check and deposit it.
      My answer exactly. You are asking unnecessary questions and opening a can of worms. Just deposit it.
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      • Profile picture of the author ronr
        Yep what John and others have said.

        I've deposited these drafts in the past and at first they might look at a little funny because they've never seen them, then accepted them every time without a problem

        Originally Posted by John Durham View Post

        My answer exactly. You are asking unnecessary questions and opening a can of worms. Just deposit it.
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        • Profile picture of the author Salashwal
          Thanks for the reassurance guys. This whole check by phone thing is new to me so when I heard how readily some guys here on the forums were using them I expected bank staff to at least have somewhat of an idea about them.

          To avoid the hassle I think I'll just print the checks and deposit them via the ATM.

          Thanks for the help!
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          • Profile picture of the author serryjw
            Originally Posted by Salashwal View Post

            Thanks for the reassurance guys. This whole check by phone thing is new to me so when I heard how readily some guys here on the forums were using them I expected bank staff to at least have somewhat of an idea about them.

            To avoid the hassle I think I'll just print the checks and deposit them via the ATM.

            Thanks for the help!
            I just goggled 'check by phone services' and they still do exist. Curious WHY you would want to do this. You still have the liability if the check bounce.
            Good Luck, Serry
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  • Profile picture of the author Rus Sells
    You can write a check on a frigg'n napkin as long as you have the correct banking information. LOL
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  • Profile picture of the author kenmichaels
    Florida banks do not accept them.

    Only 1 banking branch does. AND that is only if you have a business account
    and ONLY if you have been with them for 5 + years.

    Check by fax / check by phone .... was rife with scams.
    So everyone around here wont do it.

    just my two cents
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    Selling Ain't for Sissies!
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  • Profile picture of the author Becky_Bateman
    My core business is Payment processing and the issue is terms two different industries use that mean the same thing but are said different ways. The bank will understand the term as a "Draft" not a check by phone or a check by fax.

    Federal law requires they accept them. Now if they suspect fraud they do have the right to hold your funds for up to 10 days until the draft clears. Currently revisions are trying to be made to Frank-Dodd amendment that will limit that to just 4 days, but alas that is politics in inaction.

    Any payment processing issues you may have do not hesitate to message me. I will be more than happy to share advice.
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  • Profile picture of the author iAmNameLess
    It is illegal to not accept a check draft... Every US state has banks that accept it because it isn't governed by state law, it is federal, and under federal law every bank has to accept it. The only exception is if the bank requires you to use MICR toner, then you just need a printer with micr toner, but most banks stopped with the micr readers a long time ago

    Under the uniform commercial code, it requires banks to accept check drafts for deposit, UNLESS they suspect suspicious activity. If you don't print it properly, bad MICR line (usually useless now)... have the wrong account number... or a history of insufficient funds then they'll put a hold.

    You don't need to ask about it... just go in and deposit. You can't withdraw money immediately from it, all check drafts are for deposit only. If the bank knows you, sometimes you'll be able to get cash back from it, but its better to just deposit and wait for it to clear... my bank allows funds by midnight... others might be a couple days.
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    • Profile picture of the author SallyJo
      I've run over 1,000 of these over the course of the last 15 years or so. Never had a problem... until.....

      I opened an account at smaller local bank. There is one bank employee there that *loves* to be "concerned" about things. This particular bank runs their own deposits out of their own ATMs.

      After the hassles with this one employee... I went in and talked to one of the VPs... and they just wouldn't give. They had major heartburn about the drafts I put in - mine average $240 each.

      There was a change in the banking regulations in about 2005 which caused the bank that receives the deposit to be the bank held responsible for any losses - because the bank should know their customer is the general idea behind it all.

      So my suggestion... just use an ATM to make your deposits at a larger bank that has their ATMs picked up by a service.
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      • Profile picture of the author SallyJo
        heh heh... so at this point, I'm talking to myself... lol....

        But I just gotta add that the only thing better than driving these to an ATM is just snapping a picture of them with my iPhone and *not* having to drive to the bank!

        Just deposited $960 of these a few days ago and they went through without a hitch.

        (Just hoping that leaving this up on here might help someone else!)

        Cheers!
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        • Profile picture of the author midasman09
          Banned
          Go to ANY Staples store and ask for a product they sell called...."CHECK SOFT"! ($49)

          If the store you contact doesn't have it....go online!

          Waaay Baack when the "Banking Laws" allowed "facsimile" checks....I went to the 4 banks in my small town to see if they'd accept these checks.

          3 of the banks said they wouldn't and 1 said they would. The other 3 banks are no longer around AND....my bank (Umpqua Bank) now has 185 branches.

          Don Alm....who'd rather NOT have others control his funds
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