There have been changes to checking accounts, and you may want to take some time to find out how these changes affect you.
First of all, checks are now processed more quickly. This means that when you write a check, the money from your account may be taken out sooner. Make sure you have enough money in your account when you write a check so it doesn't bounce. A charge for a bad check could cost you $25 or more per bad check.
Here are some more changes to keep in mind:
Some of your checks may be changed into electronic transfers of money from your account. This process is called "electronic check conversion." Your check is now like a debit card, and the money may come out of your account sooner. If you don't want your checks to pay bills to be changed, you can find out how to opt out by talking to your creditors. If you need a copy of a converted check, you will need to contact your bank, which will then contact the creditor who converted your check.
Some of your checks may be processed as checks instead of being changed, but the banks may share information about payments electronically. "Substitute checks" are what banks use to do this. Checks that are used when the original check is lost or stolen are called substitute checks. When banks use substitute checks, the money from your account may be taken out of it sooner.
Your checking account statement may have items that look different from one another. Some things may be listed by check number, while others may be listed by the name of the company you paid. Always check your account statements to make sure that all of the charges match your receipts or other records.
Contact your bank, savings and loan, or credit union if you have questions about how your checks are handled.
Remember that federal law protects you from mistakes in your account when you use electronic funds transfers. But each month, you have to look at your bank statement or go online to see what's going on with your account. And as soon as you notice a mistake, you need to tell your bank.
