Watch your checking account. If you ever relied on the "float" - wrote a check at the supermarket Wednesday or Thursday against the paycheck you will deposit on Friday - DON'T DO IT ANY MORE! There will no longer be a "float"!

As of 10/28/04, mortgage companies, credit card companies, banks, supermarkets, and all the rest will be able to "convert" your check to an electronic payment and it will clear the minute your paper check hits that entity. One of my credit card companies and my mortgage company are already doing this, and the money is withdrawn from my checking account the same day the check gets to the company, instead of waiting for the paper check to go from their bank to my bank.

This also means that you probably won't get your canceled checks back with your statement (if you still do), but will get an "electronic record" instead and if you need a canceled check you will get a "substitute check".

By Trina~moderator on Sunday, October 24, 2004 - 03:02 pm:

I've NEVER floated. I've never felt comfortable writing a check *knowing* the money wasn't already there. KWIM?

By Karen~moderator on Sunday, October 24, 2004 - 05:56 pm:

Well, *I've* done it in the past, though rarely. Many places are doing that now - Party City does it, Sallie Mae does it on tuition loan payments. I think most places will eventually do it.

By Dawnk777 on Sunday, October 24, 2004 - 06:51 pm:

We haven't gotten cancelled checks in years! We are already used to that. I already knew about this. Heard it on the radio about a week ago, already.

By John on Sunday, October 24, 2004 - 07:13 pm:

Though...notice how consumers don't get the benefit of all this newer technology.

Deposit a check at the bank and they still hold *your* money in limbo for several days.

By Jujubee on Monday, October 25, 2004 - 06:23 am:

Amen John!

By Kim on Monday, October 25, 2004 - 07:20 am:

In an article I read they came right out and said these institutions are not going to give the same service to your deposit. This will increase billions of dollars a year in overdraft fees. Works for them.....

By Emily7 on Monday, October 25, 2004 - 12:44 pm:

I also am under the impression they will no longer allow stop payments.
I am so upset that they are doing this. I am wondering if they are just going to end up not having checks any more.

By Dawnk777 on Monday, October 25, 2004 - 02:40 pm:

With debit cards, DH and I write a lot fewer checks. Still need them for bills, though. DH is still hesitant about using online bill-paying services.