Stop Payments

[howdidithappen]

A check I wrote to pay my mortgage was returned NSF. There is now money in the account to cover it. Can I put a stop payment on that check that was returned and write the bank a new check? Can you put a stop pay on a NSF check?

[BigJohn]

A check I wrote to pay my mortgage was returned NSF. There is now money in the account to cover it. Can I put a stop payment on that check that was returned and write the bank a new check? Can you put a stop pay on a NSF check?

Your bank got their notice about the same time you did. I would call the bank and tell them what happened. They probably are already in the process of sending you a letter for the bad check and what you must do to make it right.

I think you are going to have to send a cashier's check so if that is the case, it might be wise to put a stop on that check that bounced.

[AngelinaCatHub]

So what does the Bank getting notice have to do with any of this? And why do you need to call the Bank to tell them why you were NSF?

Not what he was saying, the bank got notice of NSF at the time the OP did, and I agree with you BB2u, all they have to do is call the bank and tell them they will come in with money order or cash. That should settle the prob. If NSF, usually, the check has already been dishonored twice. 'Hub

[howdidithappen]

The check was only presented once. I spoke with my bank when I saw the overdraft online and told them money to cover the check was coming in the following day (It did - it's there this morning). My bank said they could not hold the check nor would they honor it. I put a stop on it yesterday and paid the party to whom the check was written with another check yesterday which will clear out of my account today. (That check is showing online today) I don't know what will happen now with the stopped check - as I indicated it was for a mortgage payment but the bank now has that payment (by way of the check written yesterday). I would have been three months late (the check was for January's payment) so I wanted to get them another check so that wouldn't happen. I have decided to take my banking business elsewhere given their lack of help yesterday; they made their money with the NSF and stop payment fees. Anyone see any repercussions? I know my mortgage holder will hit me with fees as well now..... for the check that I stopped - any other fees?

[BigJohn]

Most banks operate about the same so you might want to stay with this bank.

You might want to go to an Office Supply store and buy some checks and make your own checks. I do. In some cases, we get a considerable amount of 'extra time' and in some cases, no more time at all.

With our rent for the store, it buys us about 1 more week.

With one distributor, it buys about 2 weeks and with another distributor, it buys us about one month.

With our checks, there is no magnetic ink, just regular ink. With our two dristibors, it appears our checks have to be processed by hand by UPS so our distributors, it takes a long time for the checks to get processed. As for our rent, if we write the check using the same bank our landlord uses, the money is withdrawn within 2 days. But if we use our main bank, it takes about a week or longer to clear.
I have watched the State scan our checks into their system and they fail each and every time. Their machines read the magnetic ink. So what they do is hand type it in right there. These checks get processed in about 4 days.

[2Bshinyandnew]

Most banks operate about the same so you might want to stay with this bank.

You might want to go to an Office Supply store and buy some checks and make your own checks. I do. In some cases, we get a considerable amount of 'extra time' and in some cases, no more time at all.

With our rent for the store, it buys us about 1 more week.

With one distributor, it buys about 2 weeks and with another distributor, it buys us about one month.

With our checks, there is no magnetic ink, just regular ink. With our two dristibors, it appears our checks have to be processed by hand by UPS so our distributors, it takes a long time for the checks to get processed. As for our rent, if we write the check using the same bank our landlord uses, the money is withdrawn within 2 days. But if we use our main bank, it takes about a week or longer to clear.
I have watched the State scan our checks into their system and they fail each and every time. Their machines read the magnetic ink. So what they do is hand type it in right there. These checks get processed in about 4 days.

I bought a ream of perforated blank check stock (about 1000 sheets, 4 checks per sheet) at Officemax for about $29 and use this software here (it's free)

http://www.checkprintingsoftware.com/

I have been using checks I printed with the above software for about 3 years now, and never a problem!

Now, "floating" checks to buy time is another story altogether...I've never done it, and I don't know too much about doing it or if it is the wisest move. I understand A lot of people do it though...

[BigJohn]

I monitor my account at the bank over the internet every day. Some checks will float because they are handled differently then regular checks. But as businesses upgrade their equipment, I suspect that loop hole will end up being no more.

[BigJohn]

Check21 took care of the float, they read both the magnetic ink and if the check does not have the magnetic ink then they have optical scanners that will read the printing along the bottom and then apply a sticker with the MICR information to the check. It only takes a few more minutes of handling to do this, not days or weeks. However, you bank can reject any checks not printed with magnetic ink or asses an additional handling fee.

http://www.g7ps.com/scripts/MICRSheet.pdf


"When a check cannot be processed automatically, the reader/sorter "rejects it". The MICR information must then be manually re-keyed by someone on a special encoding device, a correction label applied to the bottom of your check, and then it is resubmitted. This is obviously an expensive process, and slows down the processing/clearing of your check.

Many people have had the misfortune of buying a package claiming to allow them to print their own checks on any printer. Some time later, their banks contact them to let them know that their checks are rejecting, and if they do not correct the problem then they will be subject to service charges (as much as $3 per check!)."

http://www.omegaonline.com/micr.htm

I have been making my own checks for over 10 years. If the check reader reads magnetic ink, my checks can't be read and have to be processed differently. When I go to the State building to pay taxes each month, they try 2 or 3 times to read the check and then they do it manually. This has been going on for over 100 months now.

We had a check reader in our store. If we processed one of our checks or a check somebody made and didn't use magnetic ink, our machine would reject it and then we would input it manually.

We never have been charged extra for using our checks and we have never have had a correction label attached to our checks. We at one time had accounts at two banks and one of them was one of the larger banks in the country.

Banks such as Citi, Wells Fargo, Wachovia, etc. have had no problem in taking and processing our checks.

[howdidithappen]

I'm concerned what the bank will do with the stopped check I originally wrote for payment of my mortgage. They have the funds now but it's from another check. I don't intend to have what happened this time occur again.

[catleg]

Well John what can I say, I post links that support what I said, and my bank has a notice that if you print your own checks and DO NOT use ink they can read they will assess a $4.00 per check handling fee.

So again I am so very happy for your special life John.

BB, normally I would agree with you, but in this case, if the check is truncated, how is the bank it's drawn on even supposed to know it's got magnetic ink on it when all they get back is a scanned image?