Online Payments via Paper Check

[marko]

We pay 99% of our bills online through our bank's online service. Most vendors accept payment via electronic transfers. But some, like our landscaper, snowplow guy, electrician etc are too small for that so when we pay them online, the bank mails them a paper check.

Here's the thing: if I tell the bank to pay the landscaper on November 12, sure enough, exactly on November 12 there's a debit for that check in my checking account.

The thing is, I strongly suspect that my guy hasn't received and cashed that check exactly on the due date but instead the bank has just made the debit. Its just too predictable.

The actual physical check could still be in his mailbox, lost or whatever. Back when we mailed him a check ourselves, we knew he'd sometimes wait a few weeks until he had a batch of checks to cash.

Anyone know how this really works?

I'm not worried about paying on time but wondering about the mechanics of it.

 

[georgemoe]

We use the same type of bill payer service from our credit union but the paper checks only clear when the recipient deposits them. Odd that your bank does that.

 

[levindb]

If there is a paper check being delivered to the recipient, you should be able to look at your bank statement online, and see an image of the processed check. If you look at the back of that check, it should have a stamp showing the deposit date.
You can compare the deposit date to the date the funds were debited from your account, and then be happy, sad, or just less bored.

 

[COcheesehead]

I use Billpay at Fidelity. The check is debited on the date you choose, but then you can go to activity and see if any are outstanding, i.e. uncashed. If it’s cashed, an image of the check is available showing endorsements.
For a check in process I would not want the amount pending to show in my balance.

 

[COcheesehead]

I am also finding more and more small, service providers taking Venmo, which is instant.

 

[audreyh1]

The paper checks - yes, you can be debited and the check was lost in the mail. Happened to me a few times. The bank takes care of it, but you have to figure out it happened first. That is an annoying aspect. I really wish they would give you some indication that the paper check was cashed.

We do not see images for these billpay paper checks except at Fidelity. Thank god CMS Medicare switched to electronic check from Fidelity because it was a pain checking for the payment to clear.

 

[gauss]

I had an issue with this one. ER Physicians billing office said they weren't paid. I had to contact the Credit Union to obtain a copy of the cancelled check (sent by the bill pay service) sent showing proof of payment.

I guess that is an option if you want to close the loop on this for a particular payment.

-gauss

 

[marko]

If there is a paper check being delivered to the recipient, you should be able to look at your bank statement online, and see an image of the processed check. If you look at the back of that check, it should have a stamp showing the deposit date.
You can compare the deposit date to the date the funds were debited from your account, and then be happy, sad, or just less bored.

You would think right? Bank of America. I can go back and see copies of handwritten checks but apparently not for the electronic paper checks.

 

[audreyh1]

You would think right? Bank of America. I can go back and see copies of handwritten checks but apparently not for the electronic paper checks.

Yes, exactly my experience.

 

[RetMD21]

Here's the thing: if I tell the bank to pay the landscaper on November 12, sure enough, exactly on November 12 there's a debit for that check in my checking account.

The thing is, I strongly suspect that my guy hasn't received and cashed that check exactly on the due date but instead the bank has just made the debit. Its just too predictable.

The actual physical check could still be in his mailbox, lost or whatever. Back when we mailed him a check ourselves, we knew he'd sometimes wait a few weeks until he had a batch of checks to cash.

Our banks do this too. The money sort of disappears for a while. It isn't in our account and hasn't been claimed by the payee.

People that come to our house and do things want a paper check before they leave. These are one off or very occasional payments so maybe it would be different if it was regularly scheduled.

 

[latexman]

We use the same type of bill payer service from our credit union but the paper checks only clear when the recipient deposits them. Odd that your bank does that.

Ditto. Your bank is taking the float from you.

 

[OldShooter]

... Your bank is taking the float from you.

Arggh ... My bank stealing the float from me?!!? Horrors! Tell me it's not true, Pollyanna!

 

[Kings over Queens]

I use the same type system for one payment. The money is debited from the account when Hippy Sal deposits the check. We call him Hippy Sal, cause his name is Sal, and he's a Hippy.

 

[Morgan22]

We pay 99% of our bills online through our bank's online service. Most vendors accept payment via electronic transfers. But some, like our landscaper, snowplow guy, electrician etc are too small for that so when we pay them online, the bank mails them a paper check.

Here's the thing: if I tell the bank to pay the landscaper on November 12, sure enough, exactly on November 12 there's a debit for that check in my checking account.

The thing is, I strongly suspect that my guy hasn't received and cashed that check exactly on the due date but instead the bank has just made the debit. Its just too predictable.

The actual physical check could still be in his mailbox, lost or whatever. Back when we mailed him a check ourselves, we knew he'd sometimes wait a few weeks until he had a batch of checks to cash.

Anyone know how this really works?

I'm not worried about paying on time but wondering about the mechanics of it.

I can confirm it works exactly as you state. I used to use BofA billpay also. Old Landlord used to want paper check in the mail. He forgot to cash one of the checks. I never knew since BofA debits your account on "due date". The bank contacted me 90 days later to say the check was not cashed and they were voiding it. They may have said you can reissue, or contact vendor. But anyways, I let him know, and that was the catalyst for him to finally accept Zelle for payment going forward.

He was very happy with Zelle when he saw that it was an instant payment directly to his account. (Even though I tried to sell him on that fact when we first started renting from him way back when).

 

[audreyh1]

Ditto. Your bank is taking the float from you.

No difference. I don’t earn interest on my bank checking deposits. I’m able to avoid fees at least and they have an excellent billpay service at no charge.

 

[ERD50]

Arggh ... My bank stealing the float from me?!!? Horrors! Tell me it's not true, Pollyanna!

But they pay the postage, so it's still a loss-leader service from them.

-ERD50

 

[marko]

Ditto. Your bank is taking the float from you.

As long as the bill gets paid I don't care.

Free postage and I don't have to go to the mailbox. A few clicks and I'm done.

 

[Aerides]

Oh you made me think. I've been doing this for years now with two different banks to my lawn guy. You're right I never see the check online like I would if I wrote a paper one, just the debit as if it were ACH (it's not).

They do cut a physical check. I guess if it were ever an issue I'd find out the next month when I got the double-up bill, and then contact my bank about it. But in maybe 10 years it hasn't happened so I'm not worried! Saved me plenty in stamps.

 

[latexman]

Free postage and I don't have to go to the mailbox. A few clicks and I'm done.

I agree. The good ole days is upon us.

 

[rk911]

We pay 99% of our bills online through our bank's online service. Most vendors accept payment via electronic transfers. But some, like our landscaper, snowplow guy, electrician etc are too small for that so when we pay them online, the bank mails them a paper check.

Here's the thing: if I tell the bank to pay the landscaper on November 12, sure enough, exactly on November 12 there's a debit for that check in my checking account.

The thing is, I strongly suspect that my guy hasn't received and cashed that check exactly on the due date but instead the bank has just made the debit. Its just too predictable.

The actual physical check could still be in his mailbox, lost or whatever. Back when we mailed him a check ourselves, we knew he'd sometimes wait a few weeks until he had a batch of checks to cash.

Anyone know how this really works?

I'm not worried about paying on time but wondering about the mechanics of it.

Our bank condiders the bill paid when the check is cut which may not be the same day it is mailed. And 'mailed' means placed in the outboing mail bag waiting to be picked up by the postal carrier. We tried paying a few bills with this system and, by getting alerts when that check was actually cashed, found that it could take anywhere from 7-10 days for the vendor to put the $ is his pocket.

We dropped that system like a hot potato (there's an idiom for that other thread) and switched all of our recurring monthly bills to auto-pay via ACH debit. Those vendors who don't accept ACH payments are paid either by CC online or by paper check that we mail or put in their hands.