I recently received a cheque (personal, from another family member) from a USA bank. My bank here wants to hold it for 21 days before it can release the funds. Any ideas how to get around this? 21 days is too long, even in the bank's opinion. In this day and age of the internet, you'd think they could verify with a phone call or e-mail. But no, it seems this is still the dark ages. Any thoughts?
Cashing a U.S. Cheque
- Thread starter ROGER O. THORNHILL
- Start date
I've had this happen and asked the bank manager to intervene. He called the U.S. bank to verify the funds were there and it was cleared inside of two hours. The cheque amount, as I recall, was about $24K.
Usually if it's under about $200 they will let it go through right away if you get a nice bank teller. Over that and they will usually hold it.
So dumb, I know!
So dumb, I know!
21 business days = 1 month
I don't think there is a way...US$ cheques are held fro 21 days (I believe that's business days so really it could be a month!) and even canadian cheques are held for a week. You can try depositing into the bank machine and hope it only gets held for a week...
I don't think there is a way...US$ cheques are held fro 21 days (I believe that's business days so really it could be a month!) and even canadian cheques are held for a week. You can try depositing into the bank machine and hope it only gets held for a week...
21 days is not unheard of. A few options:
1) Ask if a portion of the cheque can be used now
2) Consider asking your family member to wire money directly into your account (and you'll rip-up the cheque, of course). You would need to check if the money needs to be wired into a US-Dollar account, or if it could be put directly into a Canadian-Dollar account, and if so what the exchange would be. A wire may take you a day to set-up and perhaps two days to go through.
1) Ask if a portion of the cheque can be used now
2) Consider asking your family member to wire money directly into your account (and you'll rip-up the cheque, of course). You would need to check if the money needs to be wired into a US-Dollar account, or if it could be put directly into a Canadian-Dollar account, and if so what the exchange would be. A wire may take you a day to set-up and perhaps two days to go through.
Talk to the manager.
I had this happen to me before.
Even though my account had more than enough to cover the US check, the teller wouldn't budge.
I didn't need the money but I wanted to make a point and asked for the manager.
I told her that I know this is the standard procedure but it is ridiculous.
The Pony Express could get this check cleared faster than my bank.
I can't remember if she waved it immediately or she reduced it to a week or so.
I told the teller that I don't even need the money so she says, oh, you just like to cause trouble.
I had this happen to me before.
Even though my account had more than enough to cover the US check, the teller wouldn't budge.
I didn't need the money but I wanted to make a point and asked for the manager.
I told her that I know this is the standard procedure but it is ridiculous.
The Pony Express could get this check cleared faster than my bank.
I can't remember if she waved it immediately or she reduced it to a week or so.
I told the teller that I don't even need the money so she says, oh, you just like to cause trouble.
Good suggestions here so far. A broader suggestion is to get to know your bank manager for future purposes. Assuming you have never bounced any cheque, and have been using the same bank for a few years, tell the manager that you do occasional banking with US relatives, and would appreciate it if holds could be waived on your incoming US cheques. Or have said holds waived up to a certain $ limit.
They will enter this into the computer, and all tellers will from then on will abide by it. (Unless you get a newbie.) It's the same thing for larger Cdn. cheques: these need not be held if you are a good customer.
It also helps if you make your face known around your branch. Use tellers with some regularity, versus ATMs.
Wire transfers are the best way to go, but they are quite expensive. Perhaps $25-$50 on the US side to send them, and a few bucks on this side to receive them. I wouldn't bother with them unless you are transferring a large amount of money, like upwards of $10,000. But they will get money across the border, from one personal account to another, the same day.
Unless someone screws up, and then it can take a few days.
Frugal Einar, the voice of experience
They will enter this into the computer, and all tellers will from then on will abide by it. (Unless you get a newbie.) It's the same thing for larger Cdn. cheques: these need not be held if you are a good customer.
It also helps if you make your face known around your branch. Use tellers with some regularity, versus ATMs.
Wire transfers are the best way to go, but they are quite expensive. Perhaps $25-$50 on the US side to send them, and a few bucks on this side to receive them. I wouldn't bother with them unless you are transferring a large amount of money, like upwards of $10,000. But they will get money across the border, from one personal account to another, the same day.
Unless someone screws up, and then it can take a few days.
Frugal Einar, the voice of experience
21 days says other issues.
If you want the money head over the border and cash it at the bank it is drawn on.
If you want the money head over the border and cash it at the bank it is drawn on.
NO issues.
21 days has always been the standard hold time. Made some sense decades ago with old technology before computers. NOW no change because the banks don't give a crap !! REMEMBER: the banks have perfected the art of appearing to give customer service when in fact they are an OLOGOPALY & have no interest in customer service. Customer service costs money. How else can they make their BILLIONS even in a bad economy ....... and pay execs. millions a year!
21 days has always been the standard hold time. Made some sense decades ago with old technology before computers. NOW no change because the banks don't give a crap !! REMEMBER: the banks have perfected the art of appearing to give customer service when in fact they are an OLOGOPALY & have no interest in customer service. Customer service costs money. How else can they make their BILLIONS even in a bad economy ....... and pay execs. millions a year!
It's a cheque on a US account. It gets deposited here in a Canadian Bank. They cheque first has to be "Captured" in CPCS. Then it's out sorted as a US Cheque and get's bundled up and forwarded to the Canadian Bank's US exchange partner. So it get's physically exchanged with a US Bank here in Canada or the cheque has to be couriered to the US, most probably NY city. It then get's captured again by a US Bank in NY. Now, what happens?
Well that cheque may be exchanged directly with the US Bank that the cheque was issued on or it may be exchanged with the US Federal Reserve. If the cheque is exchanged with the US Federal Reserve, it then get's shipped again to the nearest Federal Reserve location that in fact does an exchange with the bank that cheque is written on. The the Federal Reserve will then exchange the cheque with the bank the cheque is written on. That bank will again Capture the cheque and withdraw the funds at that point. That takes a couple of days just to get the cheque to the bank where the funds are.
Once the funds are withdrawn from the account, the money get's exchanged back up the chain ultimately to the Canadian Bank and into your account.
Now they hold the cheque for up to 21 days to make sure that once the cheque clears in the US, the US account holder can make sure that there has been no fraud. Gives the bank a chance to decided whether or not they should be paying this cheuqe in the first place. Only when they decided the cheque is legal do the funds get released.
Well that cheque may be exchanged directly with the US Bank that the cheque was issued on or it may be exchanged with the US Federal Reserve. If the cheque is exchanged with the US Federal Reserve, it then get's shipped again to the nearest Federal Reserve location that in fact does an exchange with the bank that cheque is written on. The the Federal Reserve will then exchange the cheque with the bank the cheque is written on. That bank will again Capture the cheque and withdraw the funds at that point. That takes a couple of days just to get the cheque to the bank where the funds are.
Once the funds are withdrawn from the account, the money get's exchanged back up the chain ultimately to the Canadian Bank and into your account.
Now they hold the cheque for up to 21 days to make sure that once the cheque clears in the US, the US account holder can make sure that there has been no fraud. Gives the bank a chance to decided whether or not they should be paying this cheuqe in the first place. Only when they decided the cheque is legal do the funds get released.
einar said:
Exactly. I deposit many US dollar checks throughout the year from a few specific companies.
Those companies are listed on my account and are not subject to the hold.
As nice chat with your back manager should get you started and as long as you deposit good checks they will generally waive the hold period over time.
Yup, ran into this problem too. So I asked for a money order (which is basically equal to cash) nope, 21 day hold on that too.
I don't know why people write personal cheques now anyways, with all the ways to transfer money electroncially there really is no need.
Just as an aside to this story: I rec'd a certified cheque not long ago and went to deposit it and withdraw some funds from it, I was told there was a 48 hr hold on it...I said WTF? They said they had to verify that the cheque was good, so I aksed: well, what the hell is certification then? (so they did me a favour and faxed a copy over to the issuing bank to confirm that it was good and released the funds).....talk about BS......
I don't know why people write personal cheques now anyways, with all the ways to transfer money electroncially there really is no need.
Just as an aside to this story: I rec'd a certified cheque not long ago and went to deposit it and withdraw some funds from it, I was told there was a 48 hr hold on it...I said WTF? They said they had to verify that the cheque was good, so I aksed: well, what the hell is certification then? (so they did me a favour and faxed a copy over to the issuing bank to confirm that it was good and released the funds).....talk about BS......
unfortunatly our banking system still has the 21 day hold on out of province checks. In the states the law requires out of state and foriegn checks to be cleared in 7 days i think its 2 days for in state checks. If you can get your family member to wire or send a bank draft, tell the branch manager that the draft is coming and he can arraing to clear it.
shakenbake
Senior Turgid Member
tboy said:
All the delays are due to the nature of the banking system in the USA. It is far more secure in Canada than in the USA, as there is a greater chance of a bank going belly-up in the USA. That is how it has been for as long as I can remember (about 25 to 30 years). At least, that is the excuse I always get from the banks.
Another tip is to use someone like PCFinancial to deposit the US funds. Other traditional banks may rape you so much that you don't have much left after their 'fees'. I found it easier with PCFinancial, and they adjust the amount for exchange rate almost within a day. That is how I have handled my US cheques, even most recently.
shakenbake
Senior Turgid Member
Great Info and the best Two Options...
Many thanks to all for all the valuable advice. Special thanks to 'Cute-Bald' for the introduction to a new word: OLOGOPALY. I'm sure it will come in handy and impressive in the next business conversation. It seems to me these are the two best options to go with regarding cashing a U.S. cheque:
1) Direct wire transfer. It's worth sending the cheque back to my relative (or even travelling with the cheque itself and paying a family visit, solely for heartfelt reasons. Quicker than mail anyway) and going to the U.S. bank to have it wire-transferred into my account here. It only takes a day for the transfer to go through. The only possible delay is the U.S. bank itself confirming the funds before the transfer. All U.S. banks are working with a very delicate M.O. these days. This is usually done only with large amounts, say approximately upwards of $10K. Regardless, it is ultimately better than the 21 day waiting period.
2) Open up a U.S. bank account here in a Canadian bank and the deposit will be in U.S. funds. Wait out the 21 days. This way, the money can be transferred when the Canadian dollar is trading lower. Saves sweating out the 21 day waiting period and watching the dollar bouncing up and down. The account can be closed in a couple of months with no penalty once all the $ has been transferred to Canadian funds. Since its a new account, it flies under the radar of anyone who might be watching (for those more fiscally cautious who might care to know this).
It just goes to show us all, TERB is great for its original, main purpose but is so valuable for so many other bits of great advice. Hope all this might assist anyone else in the future.
Many thanks to all for all the valuable advice. Special thanks to 'Cute-Bald' for the introduction to a new word: OLOGOPALY. I'm sure it will come in handy and impressive in the next business conversation. It seems to me these are the two best options to go with regarding cashing a U.S. cheque:
1) Direct wire transfer. It's worth sending the cheque back to my relative (or even travelling with the cheque itself and paying a family visit, solely for heartfelt reasons. Quicker than mail anyway) and going to the U.S. bank to have it wire-transferred into my account here. It only takes a day for the transfer to go through. The only possible delay is the U.S. bank itself confirming the funds before the transfer. All U.S. banks are working with a very delicate M.O. these days. This is usually done only with large amounts, say approximately upwards of $10K. Regardless, it is ultimately better than the 21 day waiting period.
2) Open up a U.S. bank account here in a Canadian bank and the deposit will be in U.S. funds. Wait out the 21 days. This way, the money can be transferred when the Canadian dollar is trading lower. Saves sweating out the 21 day waiting period and watching the dollar bouncing up and down. The account can be closed in a couple of months with no penalty once all the $ has been transferred to Canadian funds. Since its a new account, it flies under the radar of anyone who might be watching (for those more fiscally cautious who might care to know this).
It just goes to show us all, TERB is great for its original, main purpose but is so valuable for so many other bits of great advice. Hope all this might assist anyone else in the future.
If the cheque is over your cash back limit, you can also use your line of credit to guarantee the funds. In this case, most banks will abandon the hold.
