Bounced Check

Though anyone in my circle is sick of me pointing out the inconsistencies of billing, banking, and the infamous bounced check, you haven’t heard me gripe about it yet…so I say this: isn’t it interesting that when we are charged a bill, it is due on a certain date, but then when we call to investigate why our account hasn’t cleared, the company or institution says that it takes seven to ten days for the “check” to clear.  (To drive the point home, what if you send a money order?  Why does it still take seven to ten days?) 

... the check will go through with lightning speed and you will have a bounced check on your record ...

When you make a deposit, it is not recorded for a couple of days.  If you transfer money from your PayPal account, it takes, depending on your bank, three to four days.  But again, when you pay with a credit card or check, it is sucked into their chosen vortex immediately.  Therefore…if you figure on an amount of money getting transferred to your checking account and write a check based on that amount, the check will go through with lightning speed and you will have a bounced check on your record.  The bounced check then costs ten to twenty five dollars in penalty fees, and your account is now under and screwed up enough that the next checks coming in (to the bank) will also bounce.

... consider the advice on how to avoid bounced checks and overdraft fees ...

Okay, so I get the bottom line: they would rather sit on your money than allow you to—or allow you to juggle payments using the same kind of accounting system they use, really.  Maybe you don’t get my somewhat persecuted and circular chatter.  Maybe you have more money or are more responsible or pay the bills at the last possible minute (so they are not getting the benefit of interest on your dough, you are).  But if you are more on my side of thinking, here, and need to learn how to come around to their way of doing business, consider the advice on how to avoid bounced checks and overdraft fees, or on how to get extra protection against bounced check problems.

The Federal Reserve says you can avoid bounced-check issues by being hyperaware and hypercorrect with your account(s) and a) paying careful attention to transactions especially electronic (record any check amounts for checks you write; record withdrawals, fees, and purchases made, etc.); b) remembering to deduct for any automatic billing procedures you have in play online; and keeping in mind that some amounts for automatic or other payments have not been subtracted yet.

... protection against bounced checks with what they offer as bounce or overdraft coverage ...

The Federal Reserve and other reputable sources also suggest getting protection against bounced checks with what they offer as bounce or overdraft coverage or protection plans.  If an item does make your account go into the negative, the institution will draw the necessary amount from your credit card on file or from a sister account (such as savings, for example).

Keep in mind that whichever works for you will also cost something, so good luck and stay on top of those numbers!