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New Fed system, checks clear in two days?

WegWeg Posts: 544
in U.S. Coin Forum
Last week while at the bank to verify a check I deposited cleared, the head teller told me around 6 months ago the fed started using a new system for check processing. The old system had several routing facilities throught the country vs the new system where all checks are sent to a single routing facility. The result of eliminating all the hops a check took made it so a check is now cleared in two days.

I hope this is true; going from what I thought was a 10 bus day hold to two is real progress.

Can anyone here verify this?
Remember, I'm pullen for ya; we're all in this together.---Red Green---

Comments

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    GATGAT Posts: 3,146 ✭
    The checks no longer physically move through the Federal Reserve system. They clear the system electronically now. Hence, no more kiting checks, the float game is over.
    USAF vet 1951-59
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    RWBRWB Posts: 8,082 ✭
    Similar technology allows you to deposit paper checks without a deposit slip, and to get a receipt with a image of the check on the receipt.
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    OPAOPA Posts: 17,162 ✭✭✭✭✭
    That's been the norm for some time now, however, not every financial institution was able to accommodate that.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
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    CoinCrazyPACoinCrazyPA Posts: 2,899 ✭✭✭✭
    Walmart and some other major retailers run the check through the register and hand it back to you. Checks are Like a debit card now at these stores.
    Positive BST transactions: agentjim007, cohodk, CharlieC, Chrischampeon, DRG, 3 x delistamps, djdilliodon, gmherps13, jmski52, Meltdown, Mesquite, 2 x nibanny, themaster, 2 x segoja, Timbuk3, ve3rules, jom, Blackhawk, hchcoin, Relaxn, pitboss, blu62vette, Jfoot13, Jinx86, jfoot13,Ronb

    Successful Trades: Swampboy,
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    derrybderryb Posts: 38,586 ✭✭✭✭✭
    Checks or no longer like credit cards. Better have the money in the account.

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

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    MsMorrisineMsMorrisine Posts: 39,675 ✭✭✭✭✭
    This is also why you only see images of the checks now, and not get them back in the statement.

    They process the check images now.

    The checks clear much, much faster.


    you can read more about it on the federal reserve web site. search for something like check processing restructuring.
    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    droopyddroopyd Posts: 5,381 ✭✭✭
    They've had the capacity to clear checks overnight or within 2 days for about 15 years now, since the Fed implemented an Automated Clearing House system in the mid-90s.
    Me at the Springfield coin show:
    image
    60 years into this hobby and I'm still working on my Lincoln set!
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    shorecollshorecoll Posts: 5,447 ✭✭✭✭✭
    With current technology there is no reason checks don't clear instantly. Banks still choose not to do that because end-to-end technology is expensive. Big banks spend the money on the technology but still place holds, unless you also, are a big dog. Banks strictly protect the clearing system because they still play the float game as long as possible...you as a consumer are not allowed. The electronic clearing system (ACH) is still batch posted once a day, after 20 years of protests by big customers they are finally going to 2x daily posting this year. They can't go to real-time posting because that would compete with debit cards.
    ANA-LM, NBS, EAC

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