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#47051 - 12/05/02 04:59 PM
Endorsements??
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Anonymous
Unregistered
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Help I need some expert advise. Our bank today announced that we cannot accept any checks to be deposited if they are stamped,"for deposit only", that these require a signature along w/ the stamp. Any check deposits in the ATM w/ "deposit only" must be handled as an empty envelope and not processed.
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#47052 - 12/05/02 05:14 PM
Re: Endorsements??
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Platinum Poster
Joined: Oct 2002
Posts: 524
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Go to BOL HERE for some on point input. I just cannot see your new policy as customer friendly and just treating ATM deposits that do not have a complete endorsement as empty envelopes is way beyond the pale. On the surface, it's not aligned with several regulations, but hopefully (I'm assuming) the check will be returned to the depositor for endorsement, correct? With that said, I like to be one of your competitors with this type of policy in place in your shop!
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#47053 - 12/05/02 05:18 PM
Re: Endorsements??
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10K Club
Joined: Sep 2002
Posts: 13,965
TN
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Also, if you're going to put this policy in place shouldn't you give your customer's 30 days advanced notice?
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#47054 - 12/05/02 05:24 PM
Re: Endorsements??
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Gold Star
Joined: Oct 2002
Posts: 422
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Why not instead stamp it "Credit to the account of Named Payee" or is this not an acceptable endorsement?
I would advise your customers to sign their checks under the "For deposit only" before enacting the policy.
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Michelle M
Opinions do not necessarily reflect those of my employer nor are they legal advice
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#47060 - 12/05/02 09:18 PM
Re: Endorsements??
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Gold Star
Joined: Oct 2002
Posts: 422
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I think foreign in the case means an ATM serviced by a bank other than the depositing bank. I thought everyone did this.
Last edited by Michelle M; 12/05/02 09:18 PM.
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Michelle M
Opinions do not necessarily reflect those of my employer nor are they legal advice
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#47061 - 12/05/02 10:30 PM
Re: Endorsements??
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Platinum Poster
Joined: Oct 2002
Posts: 524
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I don't think so. In the credit union world, they have a system in place that allows a customer of say, NoFedTax CU, transact business (ATM, Lobby, etc.) at say, NoStateTax CU. Through the "system," NoStateTax CU processes the business (deposit, etc) which posts through the system to the customer a NoFedTax CU.
In other words, your customers can deposit here and my customers can make a deposit at your institution. Are you saying that practically everybody is doing it in the banking world?
Foreign ATM transactions are a common and a profitable occurance, but foreign deposits - deposits to another bank would be very unusual, based on my experience.
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#47063 - 12/05/02 11:00 PM
Re: Endorsements??
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10K Club
Joined: Oct 2000
Posts: 27,750
On the Net
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When our ATMs accepted deposits (they don't now) my IT folks told me when I was looking at this, that the little deposit door didn't open if the ATM card wasn't ours.
We never thought we lost any business over this and we felt there was a savings in our costs. Now, our machines just don't do deposits. That is regulatory simplification.
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AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
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#47067 - 12/06/02 03:15 PM
Re: Endorsements??
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Anonymous
Unregistered
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A quick reference would be to refer to the UCC (Uniform Commercial Code) on matters of endorsements. I recently crossed paths with just such a question. I think you will find you answer in either Articles 3 or 4. Just a quick refresher, I the deposit is to an account of the within names payee, the restrictive endorsement, "For deposit only" can be used by simply writing the account no. of the payee under the restrictive endorsement or due to new privacy laws and the threat of fraud, the usual stamp message, "To the within named payee" will suffice under current UCC, however, you should also check your state laws to be sure they concur with or have adopted the articles of the UCC. Hope this helps!
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#47068 - 12/06/02 03:51 PM
Re: Endorsements??
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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We used to belong to a network that featured interchange deposits. The network's operations manual required that the account holding bank indemnify the ATM operator if an interchange-deposited check bounced. The requirement hinged on prompt notification by the ATM operator to the account holding bank (I think there was a same day notice requirement). The account holder then had to purchase the offending item, which was endorsed to them for collection purposes.
We dropped that network a while back -- and interchange deposits with it. We've looked a couple of times at whether we want to use NYCE's interchange deposit features, and each time we've come to our senses before "signing up." There's enough potential for ATM deposit fraud with "on us" transactions. We didn't want to compound it!
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John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#47069 - 12/06/02 04:03 PM
Re: Endorsements??
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Gold Star
Joined: Oct 2002
Posts: 422
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I will admit there was a five day hold on these deposits (except for the first $100). So if the envelope came up empty you never got the amount credited to your account. And if you had drawn against the $100 and you didn't have enought to cover it you'd get charged $20 overdraft.
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Michelle M
Opinions do not necessarily reflect those of my employer nor are they legal advice
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