Electronic Checks (e-checks): Yay or Nay?

[UNCjigga]

I remember seeing a thread here not too long ago blasting all those folks who hold up the checkout line because they're writing a check. I don't know about you, but I make all my purchases with credit card, debit card or cash (in that order of preference.)

Lately, however, merchants have been shifting towards electronic check for those slowpokes/paranoid peoples who don't use plastic. Basically they take your check, have the register fill it out for you if you'd like, scan it really quickly in the register, and hand you back your check with your receipt (check is now marked void.)

Oftentimes this process happens in the background...you give your check normally and don't receive anything back...but at the end of the day all these checks are scanned, converted to electronic debits and post to your bank account as EFT (electronic funds transfers.) Merchants and banks like this process because it simplifies paper flow between the merchant, banks, federal reserve, and you (if you get your checks back from your bank.) It also means they get to take your money faster, and you can't play the float game.

New legislation (Check Clearing for the 21st Century/'Check 21') aims to make this the norm, not the exception. Whaddya guys think about this? I figure most of us geeks use plastic anyway but I'm sure there are a few folks like the guy who wrote this editorial in Arkansas who don't like these newfangled check processing methods.

 

[filmmaker]

Nay on electronic checks.

 

[RossMAN]

Nay on any checks at a retail store, takes too damn long and is a possible loss for the retailer.

Debit/credit cards are the way to go!

 

[kranky]

What you described is called "electronic check presentment". E-checks are usually the term for what is essentially a debit card transaction but without the physical debit card - it's done electronically via computer or phone.

I don't mind the type of electronic check presentment you described. The kind that I have a problem with is when I mail a paper check to someone and it doesn't come back with my statement. The merchant converts my paper check into electronic form so it goes through the banking system faster.

The reason I don't like that? If someone fraudently alters my check to increase the amount, I have no proof because my physical check is gone.

 

[DurocShark]

Originally posted by: kranky
What you described is called "electronic check presentment". E-checks are usually the term for what is essentially a debit card transaction but without the physical debit card - it's done electronically via computer or phone.

I don't mind the type of electronic check presentment you described. The kind that I have a problem with is when I mail a paper check to someone and it doesn't come back with my statement. The merchant converts my paper check into electronic form so it goes through the banking system faster.

The reason I don't like that? If someone fraudently alters my check to increase the amount, I have no proof because my physical check is gone.

It happens all the time. Twice at Kmart to me. Never again... :| I ate $30 total from them... :|

I write occasional checks only if my wife has my ATM card. But I don't go to stores that use electronic presentment anymore.