I need to speak with a banker . . .
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Author:  admin [ Sat Jan 09, 2010 6:47 pm ]
Post subject:  I need to speak with a banker . . .

because I just got this from Banker's Online . . .

Paperless Fed - A Game Changer for Financial Institutions
Soon the Federal Reserve will be all electronic when it comes to processing checks. No longer will the Federal receive paper cash letters or send financial institutions their daily in-clearing items. The same applies to returned items. It will not be long before the Federal Reserve will make an announcement (very similar to ACH tape decision made in 1993) informing financial institutions that all check related transactions will be transmitted electronically. If your institution is unable to receive your daily files electronically, you will need to designate a processor or correspondent institution to receive your items on your behalf.

This program will address the legal, regulatory, technical and operational impacts of the Fed's elimination of all but one Check Processing Center including but not limited to:

The impact on Funds Availability and bank disclosures (with one processing center, all checks become local checks)
The impact on return items (paper and electronic)
Operational and technical impact on financial institutions that are not image capable
Forward Cash Letters
Return Cash Letters
Presentment by the Federal Reserve and Other financial institutions
Transportation Costs
Federal Reserve Processing Fees
What happens to same day settlement?
What are the processing and other considerations of Non-Cash Items (Collection Items and Foreign Checks)?
What do you do with Bonds, Coupons and Securities?
Bank Float Schedules? ... 2627344036

Here is my question . . . will this help to stop more counterfeit cashier's check scams? In the past, what I have been told is that the reason that the banks do not find out that the check is counterfeit for a week or more is because the paper check still has to go through all of the normal processing channels . . . go to the correct clearing house . . . but if it is all done electronically, wouldn't that speed up that process? And if that is so, wouldn't they be able to catch that these checks are counterfeit sooner? (and if so, how much sooner?)

Author:  ximora [ Sat Jan 09, 2010 9:27 pm ]
Post subject:  Re: I need to speak with a banker . . .

If that's the case then I think it's a great idea since it would no longer take days to complete a transaction and counterfeits would be a thing of the past... BUT... I also think, like everything else, that the scammers will eventually figure out a way around that too! It's always a cat and mouse game... as soon as new technology comes in to play... someone figures out how to out do it... :roll:

Author:  Biggles [ Sun Jan 10, 2010 6:41 am ]
Post subject:  Re: I need to speak with a banker . . .

Anything to slash the time between deposit and clearance is an absolute godsend, but this surely is only going to be applicable to the United States banking fraternity?

What about cheques sent to US citizens that are drawn on non-domestic accounts? Or how about a US cheque sent to someone in another part of the world? I feel quite certain that the system will be just as slow over an international border as it is now. It is international cooperation that is needed, to get all the countries working to plug the pathetic loophole exploited by cheque fraudsters.

Lets hope that these changes are implemented correctly and are followed elsewhere.

Author:  admin [ Sun Jan 10, 2010 11:11 am ]
Post subject:  Re: I need to speak with a banker . . .

I agree with both of you.

Yes, the scammers will find a way around it, as some point, but just like a scam baiter slows things down by messing with their time, this process may "mess with their time frame" and that is good for us.

That is why I want to talk to a banker . . . sometimes all of that legal banker talk sound like "blah, blah, blah" to me . . . I need someone that can tell me in plain English if this will do what we THINK it will do

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