5 ms·

I rarely have to but since about 1991 I log into my bank (in 1991 it was via quicken and at some point became through their website) and type in their address a

I rarely have to but since about 1991 I log into my bank (in 1991 it was via quicken and at some point became through their website) and type in their address and the amount. The bank sends a check.

lisper 6y ago
I was expecting you reply, "What's a check?"
- Xylakant 6y ago
  This is a forum frequented by US folks and to my continued surprise, checks still seem to be a normal mode of payment. A US client snail-mailed us a check about a year ago - we first needed to figure out what the process is to cash that. And it took a month for payment to go through. As an interesting side note: There are cases where you want to use a check in Germany as well. There’s what’s called a “Bundesbankscheck” which is a check vouched for by the Bundesbank and it’s cash-equivalent. So instead of carrying large amounts of cash you can just carry one of those. Relevant for cases which require immediate payment.
  - QuesnayJr 6y ago
    In the US those are called "cashier's checks".
    - Xylakant 6y ago
      I think it’s a bit more than that, the bundesbank is more or less equivalent to the Federal Reserve, so they cannot default on any amount.
      - jcrawfordor 6y ago
        Cashier's checks are insured against insolvency of the issuing bank by the FDIC, so they are backed by the US Government. However, that scenario would be fairly rare (even in the scope of bank insolvency), as the FDIC's requirements to issue cashier's checks are fairly strict - enough so that it's common for smaller banks and credit unions to actually pay a different bank to issue their cashier's checks. Take a close look at a cashier's check issued by a credit union, for example, and you will typically see that it is actually drawable against a commercial bank somewhere else that the CU contracts for this purpose. Western Union used to have a business unit that coordinated these arrangements and handled the technical side (verification service etc), but I think they spun it off to a different payments company.
  - lapetitejort 6y ago
    I still regularly use checks to pay for water and to a few contractors. My small city charges a silly fee to pay by card and spending $0.55 and 5 minutes of time is worth it. Contractors prefer checks for the same reason, and will sometimes offer a discount for doing so. Credit card transaction fees add up.
    - Xylakant 6y ago
      Electronic wire payments are default in europe and usually either free or a few cents (no percentage) - no one settled invoices via CC here. They clear next day usually, for a few euro extra you can have them clear pretty much immediately.
  - kbelder 6y ago
    I lost my house in a fire recently, and the insurance claims process goes something like this: * Insurance agent gives you a check for $XXX,XXX, payable to you AND your mortgage holder. * You endorse it. * You MAIL the check to the mortgage holder. * They endorse it. * They take their cut and mail the remainder back to you as another check. Scared me to death, putting an endorsed check for $hundreds of $thousands in the mail. But the process is evidently enshrined in law... probably not much changed from a century ago.

I rarely have to but since about 1991 I log into my bank (in 1991 it was via quicken and at some point became through their website) and type in their address and the amount. The bank sends a check.

lisper 6y ago

I was expecting you reply, "What's a check?"

Xylakant 6y ago
This is a forum frequented by US folks and to my continued surprise, checks still seem to be a normal mode of payment. A US client snail-mailed us a check about a year ago - we first needed to figure out what the process is to cash that. And it took a month for payment to go through. As an interesting side note: There are cases where you want to use a check in Germany as well. There’s what’s called a “Bundesbankscheck” which is a check vouched for by the Bundesbank and it’s cash-equivalent. So instead of carrying large amounts of cash you can just carry one of those. Relevant for cases which require immediate payment.
- QuesnayJr 6y ago
  In the US those are called "cashier's checks".
  - Xylakant 6y ago
    I think it’s a bit more than that, the bundesbank is more or less equivalent to the Federal Reserve, so they cannot default on any amount.
    - jcrawfordor 6y ago
      Cashier's checks are insured against insolvency of the issuing bank by the FDIC, so they are backed by the US Government. However, that scenario would be fairly rare (even in the scope of bank insolvency), as the FDIC's requirements to issue cashier's checks are fairly strict - enough so that it's common for smaller banks and credit unions to actually pay a different bank to issue their cashier's checks. Take a close look at a cashier's check issued by a credit union, for example, and you will typically see that it is actually drawable against a commercial bank somewhere else that the CU contracts for this purpose. Western Union used to have a business unit that coordinated these arrangements and handled the technical side (verification service etc), but I think they spun it off to a different payments company.
- lapetitejort 6y ago
  I still regularly use checks to pay for water and to a few contractors. My small city charges a silly fee to pay by card and spending $0.55 and 5 minutes of time is worth it. Contractors prefer checks for the same reason, and will sometimes offer a discount for doing so. Credit card transaction fees add up.
  - Xylakant 6y ago
    Electronic wire payments are default in europe and usually either free or a few cents (no percentage) - no one settled invoices via CC here. They clear next day usually, for a few euro extra you can have them clear pretty much immediately.
- kbelder 6y ago
  I lost my house in a fire recently, and the insurance claims process goes something like this: * Insurance agent gives you a check for $XXX,XXX, payable to you AND your mortgage holder. * You endorse it. * You MAIL the check to the mortgage holder. * They endorse it. * They take their cut and mail the remainder back to you as another check. Scared me to death, putting an endorsed check for $hundreds of $thousands in the mail. But the process is evidently enshrined in law... probably not much changed from a century ago.