Bank protection is a service that helps customers when they inadvertently write checks that may be returned due to insufficient funds in their accounts. This usually happens when they overdraft their accounts. Bank consultants are the ones that help banks create bounce protection plans.

Related posts:

1. Managing Your Checking Account — Avoiding Bank Fees All banks
2. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are
3. Want To Stay Off ChexSystems? Don’t Write Bad Checks Here's som

It is a bank with assets or deposits of $1 billion or lower. While there are small numbers of community banks with higher assets, the majority have far smaller assets. Unlike the other big banks, community banks are institutions owned and operated locally. This means that customers can get a more personalized service while lending decisions are made by people who understand the unique challenges of the particular community.

Related posts:

1. Managing Your Checking Account — Avoiding Bank Fees All banks
2. Why You Need a Bank Account Even if You Are On ChexSystems Being on t
3. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are

This is a non-profit agency that helps debtors plan budgets and repay debts at no cost. The counselors of CCCS give clients thorough and neutral advice. However, some are questioning the process as each office of CCCS are actually funded by the creditors through voluntary donations.

Related posts:

1. On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act Have you r
2. Fair Credit Reporting Act (FCRA) The Fair C
3. Credit Report Your

Many folks on the ChexSystems list who cannot open a “regular” checking account look into opening a prepaid debit card account.  One of the biggest complaints we hear is from customers who don’t understand how debit cards work.  So, we were excited to hear about a new website that is designed to answer questions about debit cards.

Here are a few quotes from the press release announcing the launch of the new website:

DebitFacts.org is a debit card information Web site sponsored by the PULSE(R) ATM/debit network. Along with the video, DebitFacts.org offers information to consumers about the ease and convenience of paying with debit cards. The site also features money management articles written by certified financial planners and money management experts that detail how consumers can make debit part of their personal money management strategy.

“Debit cards are a convenient way to use and properly manage your money, and this site communicates all the benefits associated with debit cards,” said Cindy Ballard, PULSE executive vice president. “The latest video gives consumers tips to start a savings plan and take steps to better financial planning and money management using features already offered by your debit card and financial institution.”

Already appearing on the site are expert articles from Bruce Cundiff, director of payments research and consulting with Javelin Strategy & Research, and Judy Lawrence, financial and wealth coach and author of The Budget Kit: Common Cents Money Management Workbook. In the coming months, additional expert articles and videos will be posted to the site to offer consumers easy to understand information about debit card uses.

You can check out this new site here.

Related posts:

1. PrePaid Debit Card Accounts — Are They Insured by the Government? Have you c
2. Prepaid Debit Card — More on the Satisfaction Survey Yeah, yeah
3. Meet the Company Behind The Walmart Prepaid Debit Card (and Others…) Ever curio

This term refers to the number of days an institution can hold funds legally from a deposited check, before they can be credited to the account of the depositor. The length of the check hold is designed to determine the number of days it would take for an institution to collect funds from the person who wrote the check.

Related posts:

1. Check Clearing This term
2. How to Stop Payment on a Check Have you e
3. What is a “Substitute Check”? Have you h

We’ve talked about check clearing before.  Advances in how checks are processed (or “cleared”) have made it easier to bounce a check.  (and bouncing checks is one of the easiest ways to lose your banking privileges and end up on the ChexSystems list).  We found a great visual explanation of the check clearing process on the FFIEC website. 

Check it out here: 

You can learn more at the FFIEC website.

Related posts:

1. Check Clearing This term
2. Checking Account Fraud — Types of Check Fraud Despite re
3. What is a “Substitute Check”? Have you h

Also called an agent bank, a Correspondent Bank takes deposits and performs banking services for another financial institution (called a respondent bank). Usually, the two banks are in different cities or countries. In most cases, commercial banks are the ones that provide correspondent banking services.

Related posts:

1. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are
2. Community Bank It is a ba
3. Checking Account Fraud — Types of Check Fraud Despite re

This is a bank account that lets money to be withdrawn by the account holder from the available balance, even without advance notice to the bank. Funds in accounts such as checking accounts and savings accounts are demand deposits as they are available to the customer at any time.

Related posts:

1. Direct Deposit Tip: Save Money By Using Direct Deposit Most of us
2. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are
3. New FDIC Insurance Limits Are you al

This is an insurance policy that protects the insured against abnormal losses due to unpaid accounts receivable. This may also take the form of a credit derivative. Most of the time, a bank would need credit insurance before a loan is issued backed by the receivables of a company.

Related posts:

1. New FDIC Insurance Limits Are you al
2. PrePaid Debit Card Accounts — Are They Insured by the Government? Have you c
3. Fair Credit Reporting Act (FCRA) The Fair C

The term “ATM access fee” comes up frequently for people with ChexSystems issues. So what does this term means?

ATM access fee is actually a weekly, monthly or annual fee charged to an account holder in order to gain access to the ATM machine. This is an additional fee to the individual account fees of the customer.

Related posts:

1. Demand Deposit This is a
2. Which is More Expensive: Check Cashers, Checking Accounts, or Prepaid Debit Cards? Most peopl
3. Win Lunch With Russell Simmons (Plus Get a Bank Account) How’

This term describes the movement of a check from a certain bank in which it was deposited back to the institution on which it was written. This also applies to the movement of the face amounts in the opposite direction. Also known as “clearing”, this usually results in a credit to the account at the bank where the deposit was made, while an equal debit also occurs to the account at the bank on which the check was drawn.

Related posts:

1. Check Clearing - Understanding How Checks Are Processed We've talk
2. Checking Account Fraud — Types of Check Fraud Despite re
3. Check Hold This term

A study just released by the FDIC claims that “one-quarter of banks offer ’second chance’ accounts designed for individuals not qualified for conventional bank accounts.” What? Where are these “one-quarter” of banks at? Have you tried to find a good second chance bank account lately?

Here’s a quote from the FDIC study:

A blemished credit history presents further challenges to opening a new account. Most banks (87 percent) require a third-party credit check screen, such as ChexSystems, when a customer opens a new checking account. One-quarter of banks automatically reject a new account application that receives a negative result on the credit check screen, and only half (49 percent) can override a negative result at a branch location. However, one-quarter of banks offer “second chance” accounts designed for individuals not qualified for conventional bank accounts.

Survey results reveal that a blemished credit history and insufficient identification impede unbanked and underbanked individuals from opening bank accounts more than any other factor. When asked to rank order the three most common reasons that a new account applicant is declined, banks identified “negative account screening” first, followed by “insufficient identification information” and a “low credit score.”

The study references the following footnotes and information:

…ChexSystems, Inc., is a network of financial institutions that provides deposit account verification services to members and information to help them identify account applicants who may have a history of account mishandling (for example, people whose accounts were overdrawn and then closed by their bank).

…”Second chance” accounts are frequently checkless accounts or accounts with limited check-writing privileges that may be connected to a debit card. They usually provide most or all of the benefits of a regular checking account, including a bank routing number and account number.

We aren’t sure where they got the information about the second chance bank accounts… but we are pretty sure that the 87% statistic regarding ChexSystems is accurate (or maybe even low!).

You can check out the whole FDIC report here.

Related posts:

1. Bank Accounts for Non-Residents — Why So Difficult? If you don
2. New FDIC Insurance Limits Are you al
3. Finding Local Second Chance Checking Accounts Finding a

If you don’t have a driver’s license and other US -issued identification, it is extremely hard to open a bank account in the U.S. We’ve always thought that the primary reason that banks don’t issue bank accounts to non-residents was due to Federal “know your customer” regulations. Apparently, that’s not the whole reason.

A recent FDIC study surveyed a bunch of U.S. banks and asked them questions about opening new accounts (and in particular, opening new accounts for the “underbanked” population in the U.S.).

Here are some interesting survey results from the report:

Unbanked and underbanked individuals also face a number of challenges in establishing banking relationships. These individuals often must present government-issued identification to open a bank account. While most banks will accept either a driver’s license (99 percent) or passport (92 percent), only 27 percent of banks accept Matrícula Consular cards and only 38 percent accept ITINs as forms of identification for opening a new account.

It’s even more difficult to cash a check at a bank without “proper” identification. Check this out:

Banks need to start accepting the fact that not everyone has a driver’s license. There are plenty of excellent customers who work hard and have alternative forms of identification. How about giving them a shot?

You can read the whole study here.

Related posts:

1. The FDIC Says Almost 1/4 Of Banks Offer “Second Chance Accounts” A study ju
2. Which is More Expensive: Check Cashers, Checking Accounts, or Prepaid Debit Cards? Most peopl
3. Finding Local Second Chance Checking Accounts Finding a

Ever curious about what the little green dot on some prepaid debit cards means? Well the green dot is a trademark that is used to show that the Walmart prepaid debit cards are processed by a company called GreenDot. Learn about it GreenDot and what they do in this article.

Many of the prepaid debit cards issued in the United States are managed by a company called Green Dot. If you look at the packaging on the Walmart prepaid debit card as an example, you’ll notice a little green dot on the packaging. That green dot indicates that Walmart cards are processed using technology provided by Green Dot Corporation.

Walmart is not the only company that issues cards processed by Green Dot. Other companies include General Electric, Meijer, PayPal, etc. Why do they partner with Green Dot? Well, according to the Green Dot website,

Green Dot Corporation invented the retail prepaid debit card product and is today the largest company providing such products and services. With nearly 50,000 stores nationwide selling its products, Green Dot Corporation maintains a commanding market share of the retailer-sold debit card category.

Additionally, Green Dot Corporation owns and operates the Green Dot Financial Network (GDFN). GDFN is the largest domestic cash-acceptance network of its kind offering prepaid card reloading and other cash collection services to America’s leading banks and financial services companies.

Green Dot claims to be the number 1 brand in prepaid cards, and operates the largest prepaid debit card load network.

Here’s the demographics of a typical Green Dot customer:

• 40% are homeowners
• Their average annual income is $27,500
• Over 20% have declared bankruptcy
• Almost 70% have been turned down for a credit card
• Almost 50% have active bank accounts.

Green Dot also acknowledges that many of their customers are people who have had ChexSystems problems in the past.

Related posts:

1. Everyday Prepaid — MasterCard’s New Prepaid Debit Card Campaign We are alw
2. Debit Cards are Passing Credit Cards in Popularity For the fi
3. Prepaid Debit Card — More on the Satisfaction Survey Yeah, yeah

Most people would assume that it is less expensive to bank with a “real” bank and use a “real” checking account. Here’s why that may not be the case.

The Center for Financial Services Innovation (CFSI) recently published the results of a survey where they tried to compare the cost of different types of accounts. In particular, the survey tried to compare the cost of a regular checking account with the cost of a prepaid debit card and the cost of using check casher services.

The study was not comprehensive, but it provides some pretty interesting insights. The conclusion is that there is no best one-size-fits all financial strategy – whether based on using a traditional checking account, check cashing services or a prepaid card – that is right for all people. Each of these services can be used relatively cost effectively, if the individual has access to low cost providers.

However, the problem for many people on ChexSystems list is that they do not have access to low cost providers for all services. Instead, folks who are on the ChexSystems list have few options for low cost checking accounts. Of the accounts that may be available, the fees can be quite high.

If you are interested, you can read the full survey here. Or, check back in the next few days and we’ll provide a greater analysis of the study.

Related posts:

1. Prepaid Debit Cards: The Top Five Reasons People Use Them A recent s
2. Prepaid Debit Cards — Survey Says Two Thumbs Up Many folks
3. Prepaid Debit Cards are Getting Even Easier to Use We are big

Have you considered putting your money and paycheck into a prepaid debit card account, but worried whether your money is safe? It’s a reasonable concern (especially now, when we hear about the financial problems that banks are experiencing). The answer to your concern depends on a few things that are very easy for you to find out.

Luckily, most prepaid debit card accounts are issued by Federally-insured banks. That means that you could be insured for up to $250,000 by the Federal Government. However, not all prepaid debit card accounts are insured by the Fed.

Based on a legal opinion published late in 2008, here are the two criteria your prepaid debit card account must meet for you to enjoy the full benefits of deposit insurance by the Federal Government:

First, the bank that issues your prepaid debit card must be “FDIC Insured”. You can figure this out by either checking the bank’s website, or checking with http://www.fdic.gov, or by calling your bank.

Next, the prepaid debit card must be issued with you as the account holder. If the debit card is issued to your employer, or to some other entity, then that entity is insured for any losses. Make sure that you are listed as the account holder (or your spouse or another family member) so that you (or your family) enjoy the full benefits of FDIC insurance protection.

You can read more about FDIC insurance coverage for prepaid cards at the FDIC website.

Related posts:

1. Everyday Prepaid — MasterCard’s New Prepaid Debit Card Campaign We are alw
2. Which is More Expensive: Check Cashers, Checking Accounts, or Prepaid Debit Cards? Most peopl
3. AllAccess Prepaid Debit Visa Card The AllAcc

Here’s a question we receive all the time from folks who are considering prepaid debit cards:

Can I use my prepaid debit card to rent a car?

This is a great question, and many people don’t think about it until it is too late. Here’s the answer — “it depends” (sorry about the weasel-worded answer!).

Here’s the deal. When you rent a car, the car rental agency doesn’t know the exact amount they are going to have to charge you for. Sure, they know the rate that you’ve agreed to, and they know the amount of taxes and insurance to charge you, but they don’t know whether they will need to charge you extra for gas, or extra mileage. They also don’t know if you will really return the car on time or in good condition.

So, car rental agencies place an “open ended” charge hold on your debit or credit card when you reserve, so that they are comfortable giving you the keys to a $15,000 (or more) vehicle.

What does this have to do with prepaid debit cards? Well, if you rent a car with a prepaid debit card, you may wind up not having access to your cash until you have returned the car. The funds authorized (and “held”) for the rental car company will be unavailable for your use until the final rental charges have posted to your account.

This means you may that you will not have access to your money for days (or even weeks!).

So, we recommend that you either use a credit card to rent a car, or that you at least call your car rental agency and discuss this issue with them before booking a car using your debit card.

Good luck, and safe travels!

Related posts:

1. Prepaid Debit Card — More on the Satisfaction Survey Yeah, yeah
2. Everyday Prepaid — MasterCard’s New Prepaid Debit Card Campaign We are alw
3. Meet the Company Behind The Walmart Prepaid Debit Card (and Others…) Ever curio

If you are a loyal reader of this site, you know we recommend that EVERYONE get a copy of their ChexSystems report. You need to know what is on your ChexSystems record, and the only way to find out is to order a copy of your official ChexSystems report. (We provide information on how to contact ChexSystems here).

But what do you do when you get your report? How do you figure out how bad your ChexSystems report is? Well here’s a simple way to look at things. There are two general types of items on your ChexSystems report — items about your mistakes (like bouncing checks), and items that indicate that you may have committed fraud.

If you have simple mistakes on your report, you stand a decent chance of opening a new bank account.

If you have fraud items on your ChexSystems report… well, you may have a difficult time opening a good bank account for a while (although you may be able to open a second chance checking account).

Here are things to look for on your ChexSystems report that are associated with suspected fraud:

• Writing checks on a closed account.
• Possible false information used in opening an account.
• Transactions involving returned items from own account at another bank.
• Excessive drawing on uncollected funds.
• Automatic teller machine abuse.
• Transactions involving possibly forged items or checks.
• Suspected fraud activity of electronic transfer account (ETA).
• Transactions involving items belonging to a deceased party.
• Transactions involving items belonging to another party.
• Using funds credited to an account in error or received in error.
• Transactions involving items with irregular signature/endorsement.
• Transactions involving checks returned stop payment.
• Possible forgery.
• Transactions involving possibly altered items or checks.
• Transactions involving possibly stolen items or checks.
• Suspected fraud activity.

Related posts:

1. ChexSystems Removal — How To Remove Fraudulent Info From Your ChexSystems Report Did you kn
2. How to Dispute Information on Your Chex Systems Report One of the
3. ChexSystems Removal — Sample Dispute Letter Stuck on C

We are big fans of prepaid debit cards. We’ve known (for a long time), that prepaid debit cards are perfect second chance bank accounts. We are starting to realize that prepaid debit cards can be also be a perfect first choice for your bank account. One of the biggest complaints that some people have about prepaid debit cards is that some can be difficult to “load” with new funds. Well, depositing money into your prepaid debit card account is getting even easier….

AccountNow and Moneygram International just announced a program where AccountNow will issue a new Visa prepaid debit card which will be available at MoneyGram agent locations all over the U.S. The new product will be available almost everywhere (at over 40,000 locations) and will allow users to easily deposit funds in the account at any Moneygram location.

Here’s what MoneyGram and AccountNow had to say about the new product:

The MoneyGram AccountNow Prepaid Visa card, which will participate in the Visa ReadyLink, Interlink, and Plus networks, joins an extensive line of MoneyGram products to serve underbanked consumers with a low-cost and convenient way to complete financial transactions such as bill payment and money transfer. No credit or bank account is necessary for card holders to load cash at any MoneyGram agent location, and consumers can use the card everywhere Visa debit is accepted.

“We recognize the value of offering a prepaid card as the underbanked population continues to grow and more consumers, who may not have access to a traditional credit card, seek secure and convenient alternatives that provide more control over their finances and fewer surprises such as over-draft fees, late fees and interest rate changes,” said Tim Summers, general manager of Consumer Products Americas at MoneyGram. “This is truly a win-win for both companies. AccountNow, with its expertise in acquiring, servicing and managing underbanked consumers, is an excellent partner to enable MoneyGram to deliver an exceptional prepaid card to our customer base. And, MoneyGram, with its 40,000 locations in the United States, brings a new level of convenience to AccountNow customers.”

Matt Montes, founder of AccountNow, said: “The value of working with MoneyGram on this co-brand card will be realized everyday by the thousands of consumers who sign up for this card. Consumers will save money and time with every use. This partnership fits perfectly with AccountNow’s strategy to work only with the world’s best organizations that share our philosophy of providing services to truly benefit our customers.”

Brian Triplett, head of global prepaid products, Visa Inc., added: “At a time when more consumers are focused on managing their finances, prepaid products can be a helpful budgeting tool, while empowering consumers with a better way to make everyday purchases, pay bills and receive payroll deposits. Prepaid is a key priority for Visa, and we are excited to work with MoneyGram and AccountNow to extend access to prepaid products and services to financially underserved consumers.”

The MoneyGram AccountNow Prepaid Visa Card is issued by MetaBank pursuant to a license from Visa U.S.A. Inc.

Related posts:

1. Debit Cards are Passing Credit Cards in Popularity For the fi
2. Prepaid Debit Cards: The Top Five Reasons People Use Them A recent s
3. Prepaid Debit Cards — Survey Says Two Thumbs Up Many folks

Have you heard the term “substitute check” used? Have you wondered what it means? Find out here (and also find out why you should care).

In 2004, a law went into effect in the U.S. referred to as “Check 21″. Check 21 made it easier for banks to process checks faster. In effect, it allowed banks to replace the old-fashioned paper check system with a fancy and efficient electronic system. To make check processing faster, many banks no longer send paper checks to other banks to receive payment. Instead, these banks exchange payment information electronically. Many banks now electronically transfer check images instead of physically transferring paper checks.

Check 21 lets banks replace your original paper check with a “substitute check” (that is typically created and transmitted electronically). Substitute checks are special paper copies of the front and back of the original check. They can be processed as if they were original checks. The front of a substitute check should state: “This is a legal copy of your check. You can use it the same way you would use the original check.” You can use a substitute check as proof of payment just as you would use an original check.

Here’s an example of the front of a “substitute check”:

And here’s an example of the back of a substitute check:

So, why should you care about electronic checks and substitute checks? They are processed faster than old-fashioned paper checks. An electronically transmitted check can post to your account in a day or two (instead of 3 to 5 days). You have less time between when you write a check and when it hits your account. So you need to make sure you have enough money in your account when you write your checks.

Don’t try to “float” your checks anymore. You may have gotten away with it in the past, but with Check 21, your chances of success are slim.

When you bounce checks, you end up on the ChexSystems list. When you end up on the ChexSystems list, you end up having a very difficult time opening a new bank account (for up to 7 years!). Don’t chance it!

Related posts:

1. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are
2. Electronic Funds Transfers: How They Work Learn abou
3. How to Stop Payment on a Check Have you e

Despite recent innovations in check processing (such as the “Check 21″ law that went into affect in 2004 and which causes most checks to be processed electronically), check fraud is still widespread.

We’ve talked about “check kiting” as a form of fraud in the past. Today, we’ll briefly discuss some other types of check fraud that still exist. Why do you need to know about this stuff? … You need to watch out to make sure you are not a victim of check fraud. Check fraud typically results in overdrawn and closed accounts (and if you are suspected of being involved, will certainly land you on the ChexSystems list).

Altered Checks

Altered checks are a common fraud that occurs after a legitimate check writer creates a valid check to pay a debt. A criminal then takes the good check and uses chemicals or other means to erase the amount or the name of the payee, so that new information can be entered. The new information can be added by typewriter, in handwriting, or with a laser printer or check imprinter, whichever seems most appropriate to the check.

Counterfeit Checks

Counterfeit checks are checks that are presented based on fraudulent identification. Counterfeit checks may also be fake checks drawn on valid accounts.

Identity Theft and Checks

A common form of check fraud is when a theif assumes someone’s identity and poses as them to write checks. This is also called “identity assumption”. Identity assumption in check fraud occurs when criminals learn information about a financial institution customer, such as name, address, financial institution account number, social security number, home and work telephone numbers, or employer, and use the information to misrepresent themselves as the valid financial institution customer. These schemes may involve changing account information, creating fake transactions between unsuspecting parties, or preparing checks drawn on the valid account that are presented using false identification. To prevent this kind of theft from happening to you, make sure to always protect your social security number and banking information.

Closed Account Fraud

Closed account frauds involve checks being written against closed checking accounts. This type of fraud generally relies upon the
float time involved in checking transactions that involve multiple banks. Closed account fraud can occur when you don’t destroy checks from a closed account, or when you forget to tell your bank that you want to close your account.

Related posts:

1. Opening a Checking Account: What to Consider This is th
2. Managing Your Checking Account — Avoiding Bank Fees All banks
3. Which is More Expensive: Check Cashers, Checking Accounts, or Prepaid Debit Cards? Most peopl

Have you ever written a check, and then found out the item you wrote the check for was defective, or wasn’t what they seller promised? You may want to stop payment on the check. Here’s how to do it.

As soon as you realize that you need to stop payment on a check you wrote, call your bank or credit union immediately, and make an oral request to stop payment on the check. There is always a charge for making a stop payment ($25 to $30 is typical), so make sure you are serious about it. When you call the bank or credit union, ask the customer service agent how much the fee for placing a stop on the check will be.

Confirm that you want the stop payment placed, and give the agent details about the check (tell them the check number), the amount, and the payee so there is no confusion.

Then, as soon as you get off the phone, write a letter (mail it or deliver it in person) and put your request to stop payment in writing. Either include payment for the stop payment, or give authorization to debit your account. As always, make sure you have sufficient funds to cover the charge (or risk bouncing the fee, and ending up on the ChexSystems list).

In your letter, make sure to clearly identify yourself and your request. Also, make the request clear — tell the bank exactly what you want them to do. For example, tell them “This is a request that you STOP PAYMENT on Check #434, dated 05/4/2009 in the amount of $98.87″. You are NOT authorized to pay this check. Enclosed is my payment of $30.00 to stop payment on this item. This letter is a written confirmation of my oral request made on 05/4/2009 (given to Mr. Tom Jones of BigBank).”

Also, be aware that stop payments on a check may only last for a specific period of time (for example, six months to one year). If the person you wrote the check to might try to represent the check for payment after that period, you may need to worry about resubmitting or renewing your stop payment request. Discuss this with the bank’s customer service representative to be sure.

Good luck. Always try to avoid these situations, but know that if you need to, you can stop payment if you act quickly enough.

Have you ever written a check, and then found out the item you wrote the check for was defective, or wasn’t what they seller promised? You may want to stop payment on the check. Here’s how to do it.

Related posts:

1. What is a “Substitute Check”? Have you h
2. ChexSystems Removal — Sample Dispute Letter Stuck on C
3. Check Hold This term

All banks charge fees, they are a fact of financial life. Many different fees are charged by banks in an attempt to develop what the banks consider a positive adjustment in consumer behavior. One example is fees for an “excessive amount” of ATM transactions per month. ATM fees alone create over $2 billion a year for banks. Another is a fee on accounts with too little money in them. Fee structure may be used by banks to persuade them to create positive cash flow in their accounts held with that bank. Some may seem prohibitive but they are all legal. The key for consumers is to find out what they can do to avoid these fees.

Bank fees have increased over the last ten years due in part to competition for loans. This competition has forced bankers to offer lower interest rates to borrowers. One of the benefactors of these trends has been home buyers, who continue to pay some of the lowest mortgage rates in decades. But it also means that banks aren’t profiting as much on those loans. In order to compensate for decreasing profits, the banks and are using extra fees to enhance the bottom line.

Bank customers have several options available. They can work to circumvent negative bank account balances or find a bank that is more understanding when there is a negative balance. Bounced check fees generally run approximately $25. Due to new federal laws concerning checking accounts, the days of floating a check for a few days until it is processed are a thing of the past now that checks can be processed within 24 hours.

Given the new check processing time lag, this should affect a lot of previously accepted check writing behavior by bank customers. Bouncing checks is easily solved by not writing checks for money that’s not in the account. Bank customers may also sign up for overdraft protection that comes with its own fees. Depending on the amount of bad checks, this could equate to a real savings. As many of us are painfully aware, bouncing a check (even by accident) can destroy your banking privileges if you are reported to ChexSystems. To stay off the ChexSystems list, you need to avoid bouncing checks.

The simple solution is you need to shop and evaluate banks as you would any other business offering a product or service. Always specifically look at the fee system for the type of accounts or banking habits you’ve developed. This way you can find a bank that will more closely meet your particular banking habits without consuming all your money in fees.

Related posts:

1. Want To Stay Off ChexSystems? Don’t Write Bad Checks Here's som
2. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are
3. How New Banking Rules May Impact Your Second Chance Bank Account New govern

Most of us who have ended up on the ChexSystems list have spent most of our financial energy looking for a good non-ChexSystems bank. It’s difficult to think about other financial issues, much less saving money.

But here’s a great (and easy) way for you to save money. It’s a simple technique that almost anyone can use, even folks on ChexSystems or people with prepaid debit card accounts.

Here’s the tip — if your employer offers direct deposit, USE IT.

Even better, use it to “split” your paycheck into two deposits each pay period. A first deposit that goes into your normal checking or banking account (or prepaid debit account) that is large enough to cover your living expenses and bills, and a second deposit that goes into a savings account. It doesn’t matter if the savings deposit is $10 a month, or $100 a month, you just need to do it.

You’ll be amazed at how quickly the savings balance adds up. Without any effort on your part.

You can learn more about how easy it is to “split” your direct deposit into two separate accounts at ElectronicPayments’ website.

Related posts:

1. Demand Deposit This is a
2. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are
3. Balancing your Checkbook with Success This is th

Yeah, yeah. We may be talking a little much about how happy prepaid debit card users are, but we can’t help ourselves. This is the last time (at least this week), we promise.

As we previously mentioned, a recent survey confirms our feelings — people who use prepaid debit cards… really like them!

Prepaid Debit Card users are a satisfied group when you check out the survey conducted by the Network Branded Prepaid Card Association (NBPCA). This survey was geared toward the prepaid card usage by underbanked consumers. These consumers are typically people who have had some type of credit or financial problems in the past, or are possibly just starting out and have not generated a positive financial record yet. This group may find it very difficult to bank in the typical banking environment.

While cash is acceptable by many merchants it certainly has its limitations in today’s society. That is why this group of people is turning to prepaid debit cards for solutions. Prepaid debit cards give them options that “cash only” does not provide them. The first is security; if cash is lost or stolen the chance to reclaim the funds is very poor. With the prepaid debit cards if it is lost or stolen the full amount of the funds on the card, including any unauthorized transactions can be returned to the cardholder. This adds to the comfort level of these individuals.

If you have ever been looking for a good deal on a purchase, or need to buy something that you may not be able to find locally you know that the internet can be a savior. This is another area where the underbanked love their prepaid debit cards. It gives them the ability to find and purchase these items with relative ease giving them the advantages of a typical bank customer. These customers are able to shop from home, search for the best deals available, and not have to fill up the gas tank to do it.

Some of the other popular benefits are being able to keep track of their purchases, avoid overdraft fees at the bank, and the prepaid debit cards are reloadable regardless of your credit history. These consumers also commented that they felt the fee structure was straightforward and easy to understand, and using these cards kept them from overspending. So you can see why prepaid credit card users are a satisfied group.

Related posts:

1. Prepaid Debit Cards — Survey Says Two Thumbs Up Many folks
2. Everyday Prepaid — MasterCard’s New Prepaid Debit Card Campaign We are alw
3. Prepaid Debit Cards: The Top Five Reasons People Use Them A recent s

Many folks on ChexSystems or who have other issues that may prevent them from enjoying a “real” checking account use prepaid debit cards. We love prepaid debit cards here at StopChex. We are happy to hear that lots of other people who use these banking alternatives also love them.

When the NBPCA (Network Branded Prepaid Card Association) finished their customer survey on March 9th 2009 they had a clearer picture of how the underbanked consumer segment of their users felt about using prepaid debit cards. In this article we will summarize some of the findings in this survey and find out how this group feels about prepaid debit cards.

The survey showed that about half of underbanked prepaid debit card users have a bank account, and one third currently have a credit card. Another 46% of responders used to have a bank account, and 50% used to have a credit card. Most were generally satisfied with their previous banking experiences.

The surveyed group certainly found prepaid debit cards beneficial as 95% overall found them to be very useful. Twelve percent said that they used their reloadable card at least once per day, and another 60% used them at least once per week. Only a very small group 4% found them “not very” useful.

When it comes to recommending a reloadable prepaid debit card to family and friends three quarters of respondents would be either “certain” or “very likely” to recommend them. While just 6% say they would be “not likely” to recommend them. A solid majority (72%) also agree that the fees charged for using a reloadable card are fair and believe they understand the fees associated with their card. They also overwhelmingly agree that the price for reloading prepaid cards is fair at 84%, and only 11% feel the pricing is not fair. This is why many are willing to make a positive recommendation.

When asked, when did you first use a reloadable prepaid debit card; about one half of underbanked users say they have used a card for at least a year. One third has used one for 4 months to 1 year, and one quarter say “less than 3 months”. The two largest sources for the acquisition of the cards were big box department stores at 29%, and another 15 % got them online. When reloading of the card the majority 45% was done at either the grocery or convenience store. Just 13% have not reloaded their card.

This survey has many conclusions to share, but overall the underbanked user segment of their client base seems very satisfied with reloadable prepaid debit cards and may be counted on as contented customers for the foreseeable future.

Related posts:

1. Prepaid Debit Card — More on the Satisfaction Survey Yeah, yeah
2. Prepaid Debit Cards: The Top Five Reasons People Use Them A recent s
3. Prepaid Debit Cards are Getting Even Easier to Use We are big

We are always shocked at how resistant people are to using prepaid debit cards. It’s particularly shocking that people who have ChexSystems problems and can’t open a decent local checking account are still resistant to trying a good prepaid debit card.

Apparently, MasterCard is finding out the same thing — people don’t understand the benefits of prepaid debit cards. To battle this, MasterCard is launching a marketing campaign called “Everyday Prepaid”.

The campaign is intended to “demystify the cards” which are often referred to using (confusing and misleading) names like “general-purpose debit cards”, “network-branded debit cards”, or “stored-value reloadable debit cards”.

Go MasterCard! We hope your campaign is successful. The benefits and advantages of good prepaid debit cards (er, “Everyday Prepaid” cards) are amazing. Most good prepaid cards have more benefits than a typical checking account. Read more about these cards by searching our site. There’s a prepaid card for everyone. Everyday prepaid — check it out.

Related posts:

1. First Vinyard Prepaid Debit MasterCard The First
2. Meet the Company Behind The Walmart Prepaid Debit Card (and Others…) Ever curio
3. Prepaid Debit Card — More on the Satisfaction Survey Yeah, yeah

We get asked this question all the time: “Who is ChexSystems, Inc.”?

Here’s the answer (at least as of the Spring of 2009 … as the ownership changes from time to time!).

At least as of the date of this blog post, ChexSystems, Inc. is a subsidiary of Fidelity National Information Services, Inc. Fidelity National Information Services, Inc. is a publicly traded company (you can find them on the NY Stock Exchange under the symbol “FIS“). They describe themselves as:

a leading provider of core financial institution processing, card issuer and transaction processing services and outsourcing services to financial institutions and retailers worldwide. FIS has processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 13,000 financial Institutions in more than 80 countries.

ChexSystems, Inc. was acquired by FIS when FIS acquired eFunds, Inc. in 2007. Now, FIS has a complete line of financial services products, including products related to account opening and decisioning (such as the bad customer database maintained by ChexSystems, Inc.).

It’s interesting to note that there is almost no discussion about ChexSystems, Inc. on the FIS website. Presumably, FIS is trying to avoid customer contact and complaints?

One of the few places where the connection between FIS and ChexSystems, Inc. can be found is in SEC filings made by FIS. Here’s a quote from FIS’ most recent annual report:

The Acxiom action was filed against the Company’s ChexSystems, Inc. subsidiary, while the Biometric suit was filed against the Company’s Certegy Check Services, Inc. subsidiary. The judge recused himself in the action against Certegy because he was a potential member of the class. The lawsuit was then assigned to a new judge and Certegy filed a motion to dismiss. The court granted Certegy’s motion to dismiss with prejudice in the third quarter of 2008. ChexSystems filed a motion to dismiss or stay its action based upon the earlier settlement and the Court granted the motion to stay pending resolution of the Florida case. The court dismissed the ChexSystems’ lawsuit with prejudice against the remaining defendants in the third quarter of 2008.

(That is, the SEC filing discusses a litigation matter involving FIS’ subsidiary, ChexSystems, Inc.).

Anyone have any more detailed information about ChexSystems, Inc. and their corporate structure?

Related posts:

1. ChexSystems Ends Partnership with the GetChecking Program ChexSystem
2. The FDIC Says Almost 1/4 Of Banks Offer “Second Chance Accounts” A study ju
3. What is Telecheck? People oft

Lots of us who are on the ChexSystems list are dying to get any good checking account. When you do find a new bank account, make sure you read the terms of the account carefully. In particular, check out the overdraft protection rules. Banks make LOTS of money off of these things (at our expense).

A consumer group recently conducted a poll of overdraft protection programs. The poll, conducted by the Consumer Reports National Research Center, found that many consumers do not understand how overdraft programs work. According to the poll, 39 percent of consumers thought that their bank would either deny a debit transaction or allow it to proceed without charging a fee if it would overdraw their account. Nearly half of those polled (48 percent) thought their ATM card would not work if they attempted to withdraw more money than was available in their account.

Here’s the problem. “Most banks automatically enroll their customers in so-called ‘overdraft protection’ programs, which are really high-cost loans that cost consumers billions of dollars every year,” said Lauren Zeichner Bowne, Staff Attorney for Consumers Union. The Consumers Union has teamed up with a number of other consumer protection agencies to ask the U.S. Federal Reserve Board to take steps to protect consumers from unfair overdraft loan programs by stopping the fees unless the consumer makes the choice to opt-in to the loan program.

Banks collect an estimated $7.8 billion in fees from overdrafts triggered by debit and ATM transactions. These overdrafts could be prevented with a simple warning or if the transaction was declined. Instead, most banks let these transactions go through and charge consumers a fee for each overdraft. The FDIC found that the median fee for overdrafts is $27, even though the average overdraft is triggered by transactions totaling $17.

Until the Fed acts (if they ever do), you need to protect yourself by reading the terms of your new bank account carefully. Watch out for automatic overdraft protection programs, and if your bank account has one, make sure to avoid triggering it!

Related posts:

1. Do Banks Encourage NSF Transactions? The FDIC r
2. How New Banking Rules May Impact Your Second Chance Bank Account New govern
3. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are

There’s some interesting new information about online banking and online checking accounts that was released today by HSBC Direct. Did you know that almost half of people who are on the Internet use online banking?

Young people and older people are using the Internet and online banking features (such as those provided by most online banks such as AccountNow) to pay their bills.

Here’s a quote from the research:

People are increasingly turning to Internet banking because of the increased convenience, independence and typically better value that it offers,” said Kevin Martin, EVP of Personal Financial Services, HSBC Bank USA, N.A.

The findings from HSBC Direct align with projections about the future for online banking from Forrester Research that indicates 92 million or 76 percent of American households are expected to be banking online by 2011.

Web activity on HSBCDirect.com further reveals that consumers are taking full advantage of being able to bank online at times when banks are traditionally closed. Thirty-nine percent of customers using HSBCDirect.com last year conducted their online banking between 6:00 p.m. and 7:00 a.m. ET.

Data also suggests that customers like banking online on days when a brick and mortar bank would traditionally be closed. In 2008 the site experienced almost one quarter of its web traffic over the weekend, with the distribution equally split between Saturdays and Sundays.

Kevin Martin continued: “Regardless of how and when they bank, consumers want to do business with a bank they know and trust. Not only does HSBC Direct offer one of the most competitive interest rates in the market, it’s also a significant part of HSBC’s presence in the United States, where we’re one of the nation’s leading financial services organizations.

“Globally, the HSBC Group reported pre-tax profits of US$9.3 billion for 2008, remaining one of the world’s most profitable financial institutions despite exceptionally challenging market conditions.”

Related posts:

1. How New Banking Rules May Impact Your Second Chance Bank Account New govern

Are you sick and tired of searching for a non ChexSystems bank? We provide lots of information on this site, and have listed quite a few non ChexSystems banks. But the lists keep changing, and it is always hard to find local banks that don’t use ChexSystems.

We may have found the answer to your needs!

We recently were told about a new search tool that lets you search for non ChexSystems banks. You can even search for local non ChexSystems banks. We told a few StopChex readers about the tool, and they LOVED it. Here’s a quote from one reader (Paula P.):

I went to the link you provided and then found [bank name] website via the link and applied for a checking account (no fees) online. I received an approval e-mail today and they are sending my account package in the mail today. Thanks for your help!

Here’s the deal. Because the site is brand new, and can’t handle a huge number of people, the owner of the site asked us to only give out the link to a limited number of people.

We want to tell as many people that we can, but we need to respect the wishes of the site owner. So, we’ve decided to send a link to the new site only to people who specifically ask for it.

Do you want to be able to easily search for non ChexSystems banks near you? Act now, and click on the banner below so that you can be one of the few people we provide the link to.

Related posts:

1. Finding Local Second Chance Checking Accounts Finding a
2. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are
3. Why You Need a Bank Account Even if You Are On ChexSystems Being on t

How’s this for cool — you could win a trip to New York, plus a shopping spree, plus a lunch with Russell Simmons, the famous hip-hop pioneer (and one of the top 25 Most Influential People over the last 20 years per USA Today!).

Here’s how to qualify.

If you didn’t already know it, Russell Simmons founded a company called RushCard. His goal was to bring affordable banking to everyone, including people on ChexSystems.

One of their most popular products is the BabyPhat RushCard. Here’s what you get with a BabyPhat account:

• You can show your style with the awesome BabyPhat RushCard design
• NO monthly, NO annual fees and NO hidden fees
• Quick and easy! Everyone is eligible! NO credit check
• FREE direct deposit of pay, tax refund, and government benefits
• Access your money at over 850,000 ATMS
• Free 24×7 customer service, activity status, & balance inquiries
• Use anywhere Visa debit cards are accepted-in stores, on the internet, and over the phone
• Helps control debt-you can’t overspend!

Obviously, the BabyPhat RushCard is an awesome choice for people who are on ChexSystems or who have bad credit. But wait.. there’s more!

As we mentioned above, RushCard wants to send you to New York (all expenses paid), for a shopping spree plus a lunch with Russell Simmons.

RushCard urges its members to become more financially savvy in 2009 by taking advantage of free direct deposit and using the right tools to better manage their income tax refunds.

RushCard and Baby Phat RushCard members who direct deposit their federal or state tax refunds will automatically be entered to win a trip for two to New York to have an exclusive lunch meeting with Simmons and get a private shopping spree at a selected store in New York City. The trip will also include a financial consultation during which the winner will receive advice on how to better manage his or her finances in the New Year.

“I look forward to having lunch with a RushCard member in New York City,” said Russell Simmons. “Not only will I get to know the winner better but I hope to learn how RushCard can better meet the needs of those we serve.” Simmons launched RushCard to help people without traditional banking relationships gain the access to the financial services and respect that they deserve.

Members who direct deposit their tax refund onto the RushCard can receive their refunds 2-4 weeks faster, eliminate check-cashing fees and avoid long check-cashing lines. Tax benefits direct deposited onto the RushCard are safe and are at no risk of being lost or stolen in the mail.

“Last year brought many financial challenges to our customers and this year we want to reward them with something special, said Ram Palaniappan, RushCard’s General Manager. “Tax season is a great opportunity for our members to reap the benefits of our improved money management tools. With new RushCard features like spend tracker pages, opt-in credit reporting and RushText alerts, our members are poised to improve their financial outlook in 2009.”

To qualify, BabyPhat RushCard members must make a direct deposit onto the BabyPhat RushCard of $100 or more from a Federal Tax Refund, Refund Anticipation Loan or State Tax Refund between January 1, 2009 and April 30, 2009.

Related posts:

1. Here’s a New Second Chance Account From Vision Premier Here's a n
2. Bank Freedom Prepaid Debit Visa Card The Bank F
3. AccountNow Prepaid Debit Visa Account The Accoun

Here’s a tip submitted by one of our readers (thanks Daryl!). Learn how she opened a great bank account, even though she is on ChexSystems.

Here’s Daryl’s tip:

From personally experience because the economy is so bad alot of banks are being more lienant. Wells Fargo bank now has something called a second opportunity checking which is very nice, it gives you a gold check card and all of the other banking ammentities. Every check I deposit seems to be placed on hold since I opened the account. You have to apply for a regular checking and once declined they send you a letter in the mail telling you that you may qualify for the opportunity checking. You can fund your deposit right over the phone and the account is opened within two business days. For people in Orlando like myself McCoy Federal Credit Union also offers a second opportunity checking.

Related posts:

1. Finding Local Second Chance Checking Accounts Finding a
2. Win Lunch With Russell Simmons (Plus Get a Bank Account) How’
3. Finally! An Easy Way to Find a Local Non ChexSystems Bank Are you si

This is the final article in our series of managing your checkbook and checking account. In this article, we provide a number of tips for balancing your checkbook with a high level of success. Pay attention, ‘cuz a balanced checkbook = no bounced checks = NO CHEXSYSTEMS!

Balancing your checkbook is very important. If you make even the smallest mistake it could go a long way in throwing your entire checkbook out of whack. Even though it may sound difficult, if you are patient and diligent about tracking your expenses and deposits you should be able to avoid all mistakes.

The first step in balancing your checkbook is to know where you are starting. How much money do you have in your account right now? This is your jumping off point.

Once you know where you are starting you should make it habit to record every purchase, deposit, and fee. As noted above, missing even one detail will cause your checkbook to be out of balance. In turn, you will be faced with a situation in which you have to chase down the problem; this is not always as easy as it sounds.

There are two things that can throw your checkbook out of balance month in and month out. First off, don’t forget about recurring fees. For instance, does your bank charge you for sending out a paper statement? If so, you need to remember to add this in every month.

Secondly, don’t forget about direct deposits and direct debits. Since you are not doing anything to trigger these transactions you may forget about them. Many people have their paycheck deposited directly into their checking account. At the same time direct debit is also becoming more and more common.

If you pay close attention at all times and record accurate information you should never have to deal with a checkbook that is not balanced. Once you know what to expect and how to treat each transaction you will be in position to keep a balanced checkbook at all times. And that is exactly what you want.

Related posts:

1. Tips for Properly Using and Cashing a Check This is th
2. Writing a Check: Don’t forget any Details This is th
3. Why is it Important to Stay Off the ChexSystems List? Do you rea

Here’s a question from one of our readers:

I would like to know why does chexsystem keep you on their file for 5 years? To be honest I think 2 is enough and with the way of the economy right now you would think that the way these businesses are running they would do what ever it takes to keep the consumer a client.

Related posts:

1. Reader Tip: Finding a Good Bank Account Here's a r
2. On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act Have you r
3. What is ChexSystems? Lots of pe

Here’s some of the most important information we can give you to keep you off ChexSystems — don’t write bad checks. Don’t do it on purpose. Don’t do it by accident.

It’s easy to say this, but sometimes it can be hard to avoid writing a bad check. In this article (the fourth in our series on checkwriting and checking account management), we discuss how to avoid writing bad checks and what to do if you make a mistake and need to rectify your situation.

Can you ever imagine a situation when it is a good thing to write a bad check? Probably not, and you would be right. If you are responsible enough to have a checking account you need to be responsible enough to avoid writing bad checks. But guess what? Many people cannot escape this trap and constantly find themselves writing bad checks.

The following tips should help you avoid this situation:

1. Before you write a check or head to the ATM for a withdrawal make sure you have enough money in your account. You can keep track easily enough if you accurately use your check register. Don’t forget to include all transactions in addition to checks such as ATM withdrawals and debit card purchases.

2. Beware of bank fees. This is one area that gets people in trouble all the time. If you are tight on money one fee, no matter how small, could push you into writing a bad check. Make sure you are always on the lookout for bank fees, and that you record them if they appear.

3. Check your register regularly to ensure its accuracy. You can cross reference your information by calling your bank or looking over your statement. If your register is not accurate it is only a matter of time until you write a bad check.

4. Have you ever looked into the benefits of overdraft protection? This will cost extra but in the long run it can save you a lot of money if you happen to make a mistake.

If you write a bad check you are going to cause several headaches for yourself. Not only will the bank charge you a fee, but the individual or company you are paying will also need a new check. And if you don’t get it to them in time there is a chance that you will incur a late fee. Instead of dealing with all this use the tips above to avoid writing bad checks.

Related posts:

1. Want to Avoid ChexSystems Problems? Don’t Do These 14 Things. Luckily, i
2. Tips for Properly Using and Cashing a Check This is th
3. Writing a Check: Don’t forget any Details This is th

This is the third article in a series of articles about checking account management. In this article, we provide tips on how to properly use and cash a check. To avoid ending up on the ChexSystems list, you need to use and cash checks properly.

Have you received a check? If so, you will probably want to take it to the bank to have it cashed. This is an easy process once you know what you are doing. It is also something that you should be excited about. After all, most people get used to writing checks and spending money. When you receive a check it means that you can either obtain cash or deposit the money direct into your checking account.

Here are a few tips to follow when it comes time to cash a check:

1. Do not sign a check until you are ready to cash it. It would be in your best interest to make this the last step of the check cashing process. This helps to protect your money and account.

2. When it comes time to sign your check you should only use the specified area on the back of the check. You should also remember that it is important to sign your check as it appears on the front.

3. It is important to include your bank account number beneath your signature on the back of the check. This is something that many people forget so make sure you get in the habit.

There are three ways you can use a check. They include: cashing it, depositing it, or signing it over to somebody else. When cashing a check include the words “Cash Only” above your signature; when depositing a check include “Deposit Only”; when signing over a check include “Pay to the Order of”.

The option you choose is up to you. It is safe to say that cashing and depositing are most common, but you may want to sign over a check to another at some point in time.

The above tips are sure to make it easier on you when it comes to using and cashing checks.

Related posts:

1. Writing a Check: Don’t forget any Details This is th
2. Want To Stay Off ChexSystems? Don’t Write Bad Checks Here's som
3. Opening a Checking Account: What to Consider This is th

This is the second in a series of articles about managing, using and maintaining a checking account (so you don’t end back up on the ChexSystems list). In this article, we discuss some of the most important details to keep in mind when writing a check.

There are many ways to pay for products and services and writing a check is one of the most common. Once you know how to write a check you will probably keep this information in mind for the rest of your life. But of course you need to make sure that you are always doing the right thing. After all, one mistake on a check could cost you a lot of time and money.

There are many details that need to be taken care of when writing a check. They are as follows:

1. Date. You need to place the proper date on your check. Many people will lie about the date if they don’t have the money to cover the check amount or want the other party to believe they sent the money earlier than they did. Instead of playing these games you should supply accurate information.

2. Enter the “pay to the order of” information. This is the company or individual you are paying.

3. Include the dollar amount in numbers. To go along with this you should also include the dollar amount in written words. As you know, these two numbers need to be the same.

4. Remember to sign your check. If you forget to sign your check the payee will not be able to cash it.

5. Use the memo line. This is optional in many cases, but something you should get used to. This is a place on your check that allows you to make notes to remind you of what the check was used for. Additionally, some companies will ask that you include your account number on this part of your check.

Finally, don’t forget to write in ink, not pencil. You don’t want anybody erasing the information you provided and adding their own.

Related posts:

1. Tips for Properly Using and Cashing a Check This is th
2. Want To Stay Off ChexSystems? Don’t Write Bad Checks Here's som
3. How to Stop Payment on a Check Have you e

This is the first in a series of articles about checking accounts and checking account management. Good checking account management is critical to your success in staying off the ChexSystems list. This first article provides information on opening a checking account including what to consider such as age, institution, etc.

Opening a checking account is something that most Americans do at some point in their life. That being said, you need to consider all your options and corresponding details to ensure that you open the right account. After all, there is no room for error when it comes to your money.

Here are several details to keep in mind when it comes time to open a checking account:

1. Shop around. You will find out soon enough that there are many local banks willing to help you open the right checking account. It is important to find an institution with a good reputation for reliability and customer service. To go along with this, you want to make sure that you choose a checking account that has no fees attached to it.

2. Compare services. It is important to know the pros and cons of each bank and checking account before deciding on one. Do you know what bank A offers that bank B is lacking? And vice versa? It is very important to know which services are available.

3. Which bank offers extras upon opening a checking account? Some of the most common extras include gift programs, a large network of ATM’s, electronic banking options, and much more. This detail goes along with number two in which you will compare services.

You need to choose a bank and checking account because it is right for you and your money. Although you may have a lot of options to choose from, you need to research each one so that in the end your money and time is being put to good use. If you have had ChexSystems problems in the past, you may have fewer options — but you still need to research your options. We’ve done some of the work for you (and highly recommend several products including the amazing AccountNow Prepaid Visa Card, and the second chance checking account).

Overall, there is nothing difficult about opening a checking account. Once you know what is available you can follow the tips above to choose the bank and checking account that will make you feel best about your finances.

Related posts:

1. Which is More Expensive: Check Cashers, Checking Accounts, or Prepaid Debit Cards? Most peopl
2. Interesting New Debit Card Website Many folks
3. Tips for Properly Using and Cashing a Check This is th

The Fair Credit Reporting Act is a Federal Law (in the U.S.) that protects the privacy of certain information distributed by consumer reporting agencies (CRAs). Most CRAs are credit bureaus that gather and provide information about you, such as if you pay your bills on time or have filed for bankruptcy, to creditors and other businesses. Under the law, credit bureaus and other CRAs can release your information only to those third parties that have certified that they have a purpose permitted by the law to obtain your consumer report, such as to evaluate your application for credit, insurance, or employment, or to rent you an apartment.

ChexSystems is also a CRA and is regulated by the Fair Credit Reporting Act.

Related posts:

1. On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act Have you r
2. Credit Report Your
3. Get Off ChexSystems List Are you si

Your “credit report” is a report containing detailed information about your credit history. The report includes identifying information and details about your credit accounts, loans, bankruptcies, late payments, and recent credit inquiries. Prospective lenders will obtain these reports, with your permission, to evaluate your creditworthiness. Every year, you should order a free copy of your credit report and review it for accuracy. You can learn more about your free credit report and government rules here.

Related posts:

1. Get Off ChexSystems List Are you si
2. ChexSystems Removal — How To Remove Fraudulent Info From Your ChexSystems Report Did you kn
3. On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act Have you r

Due to deceptive and unfair practices within the credit card industry federal regulators were prompted to implement new rules to protect consumers. Most of the rule changes affect credit cards, but one important rule may impact your pre-paid debit card account (these accounts are frequently used as second chance bank accounts). Here’s what you need to know.

The credit card reform rules passed by federal regulators on December 18, 2008 ban lots of deceptive (and expensive) practices that credit card companies have used lately to make more money from customers (such as raising the interest rate on an existing credit card balance when the consumer is paying the credit card bill on time).

One of the rules also affects debit card accounts (including certain prepaid debit card accounts and regular debit cards linked to bank accounts). The rule:

• Requires that banks provide consumers the right to opt out of, or alternatively opt in to, the payment of overdrafts for ATM withdrawals and one-time debit card transactions; and

• Prohibits banks from assessing overdraft fees caused by certain debit holds.

So how does that help you?

Have you ever used your debt card at store, and then found out that you overdrew your account?  If you have overdraft protection, the bank would let you make the purchase, and then hit you with an expensive overdraft advance fee.  This can add up.

The new rules will allow you to “opt out” of this practice.  If you “opt out”, when you try to use your debt card to make a purchase at a store when you don’t have enough funds in your account, the store will simply decline your purchase.  So, you may be a little embarrassed, but you won’t get hit with an overdraft fee or loan charge to make the purchase.

We think this is great news for consumers.  Look for an “opt out” form from your bank next year (these new rules don’t go into effect until July 2010).

Related posts:

1. Finding Local Second Chance Checking Accounts Finding a
2. Why You Need a Bank Account Even if You Are On ChexSystems Being on t
3. Managing Your Checking Account — Avoiding Bank Fees All banks

This is a tip we recently received from a reader. (Thanks Jim!)

Please let your readers know that Washington Mutual will let you open a bank account if you are on chexsystems, but then they will CLOSE the account a week or two later after their “recovery” team reviews your record. So, DON’T open a WaMu account (unless you talk to an account rep about your chexsystems problems FIRST.

Do YOU have any tips you want to share with our readers? Let us know, and we’ll spread the word.

Related posts:

1. Want to Avoid ChexSystems Problems? Don’t Do These 14 Things. Luckily, i
2. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are
3. What is ChexSystems? Lots of pe

Banks are failing left and right in 2008. The FDIC maintains a list of failed banks. In 2008, there have been almost 20 failures of FDIC insured banks. Is yours one of them?

How many of these failed banks are second chance banks? Often, banks that issue second chance checking accounts are more aggressive in their marketing and less stringent in their underwriting procedures. Does this lead to more failures? Check the list, and let us know if any of these banks were second chance banks.

Related posts:

1. How New Banking Rules May Impact Your Second Chance Bank Account New govern
2. Why is it Important to Stay Off the ChexSystems List? Do you rea
3. The FDIC Says Almost 1/4 Of Banks Offer “Second Chance Accounts” A study ju

If you have a bank account, or if you have ever paid a bill electronically, or sent someone money, you have used “Electronic Funds Transfers” (or “EFTs”). Have a second chance bank account? Chances are, you use EFTs to do almost all of your banking transactions.

Over the past few years more and more people have realized the benefits of electronic funds transfers. If you are not one of them there is a good chance that you are not aware of the basics of electronic funds transfers, what they offer, and how they work.

The first thing you should know is that electronic funds transfers are often times known simply as an EFT. EFTs are simply a way for money to be transferred from one account (or person or business) to another without actual paper (or physical checks) being exchanged.

What types of electronic funds transfers are popular? One type that many people use is Direct Deposit. This is when your pay or benefits check is deposited directly into your bank account as opposed to you having to go to the bank to cash a check. Direct deposit has made life much easier for employers and employees all over the world. Direct deposit also makes sure that you have almost instant access to your pay. Get paid on Fridays? With direct deposit, your pay goes into your account first thing in the morning every Friday, and you can use the money right away. No more waiting for checks to clear!

Other types of electronic funds transfers include ATM, credit card, and point of sale transactions.

One of the primary networks that is used to move funds around between banks, companies and people is the Automated Clearing House Network or ACH. For a payment, funds are taken from one company’s bank account to a billing account for the other. Generally speaking, an electronic funds transfer does not take more than one business day to be completed. Of course, there are some reasons why it could take longer.

Now that you know more about electronic funds transfers and how they work it is important to learn about the benefits. Some benefits of electronic funds transfers include less paper being used, quicker exchanges of money, reduce bookkeeping, and a higher level of security. As you can see, the benefits are many.

Although electronic funds transfers have become more popular there are still many consumers and companies that have yet to catch up. For now, the more you know about electronic funds transfers and the benefits the better off you will be.

Related posts:

1. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are
2. What is a “Substitute Check”? Have you h
3. Tips for Properly Using and Cashing a Check This is th

It is never fun to fight with your bank. In fact, this is downright annoying and can be quite scary being that you trust the institution with your money. If things are getting out of control it may be time to file a complaint. Before you do this you should attempt to resolve the problem directly with the bank. But if this does not work you should look into filing a complaint with the proper federal agency.

The Federal Reserve System is responsible for checking into complaints filed by consumers. Each of the 12 Federal Reserve Banks in the United States is responsible for investigating complaints based on geographic location. Once investigated bank complaints are referred to the proper federal agency the consumer is provided with the contact information in order to proceed.

Upon completion of an investigation you will be provided with a letter detailing the findings. If a regulation has been violated by your bank you should expect the Federal Reserve to inform you of the action that is being taken in order to correct this problem.

To get started you can write to the Federal Reserve at:

Federal Reserve Consumer Help
PO Box 1200
Minneapolis, MN 55480

If you have a question or do not know where to get started you can contact the Federal Reserve direct by phone at 888-851-1920. When writing to the Federal Reserve it is important to include your information as well as that of the bank. This includes the name and address of the bank, as well as a detailed description of your complaint.

If you are fighting with your bank and cannot resolve the issue it may be time to get the Federal Reserve involved. At the very least you will have the chance to speak your mind and hopefully save somebody else from having to deal with the same issue. Remember, if you run into problems with your bank, you may end up with ChexSystems problems or end up on the ChexSystems list. Don’t take banking problems lightly.

Related posts:

1. ChexSystems Website Information It can be
2. On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act Have you r
3. Writing a Check: Don’t forget any Details This is th

Are you always thinking about the safety of your money? If so, it is important to realize that there are new FDIC insurance limits that can keep your money safer than ever before. Of course, there are many details that surround these new limits so it is important to know what you are up against. After all, there is nothing worse than thinking that your money is covered just to find out differently.

The first point to keep in mind is that the basic limit of FDIC insurance has been increased from $100,000 to $250,000 for the time being. What does this mean? For example, in the past a checking account was only FDIC insured up to $100k. But now you can keep up to $250k in the same account without having to worry about a thing. As you can imagine this is easing the minds of millions of people across the country.

Are the limits going to change again in the near future? For now, the FDIC insurance limit is set to stay at $250k through the end of 2009. On January 1, 2010 the limit is set to return to its original $100k. So if you are currently holding more than $100k in one account you want to make sure you remember to change this before the end of 2009.

Although there are many changes being made it is important to note that the types of FDIC insured accounts are staying the same. The FDIC insures deposits at insured banks including savings accounts, checking accounts (including many second chance accounts), NOW accounts, CDs, and money market accounts. The FDIC does not insure money invested in life insurance, mutual funds, bonds, stocks, municipal securities, and annuities. This holds true even if these investments are purchased through an FDIC insured bank.

As you can see, the new FDIC limits work in the favor of the consumer. These limits are set for now, but remember that this can change and the current structure is set to revert to its original capacity on January 1, 2010.

Related posts:

1. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are
2. The FDIC Says Almost 1/4 Of Banks Offer “Second Chance Accounts” A study ju
3. Credit Insurance This is an

A recent survey by PreCash (the company that brought us the Vision Prepaid Card) shows the top five reasons why people use prepaid debit cards.

Prepaid debit cards are extremely popular. They appeal to folks who have had ChexSystems problems as well as people who just want a convenient and easy way to manage their money.

There are over 75 million financially underserved consumers in the U.S. who use prepaid debit cards as their primary bank account. For good reason — prepaid debit cards often provide more features than a traditional bank account (and often at a lower cost). Underbanked consumers using prepaid debit cards like the Vision Prepaid Card can avoid check cashing fees, manage their money via online account access, track their balance with e-mail and text alerts, and transfer money to friends and family.

PreCash, the company that brought us the Vision Prepaid Card, recently announced the top five reasons why people choose to use prepaid debit cards (the results are based on a survey they conducted). Here they are:

1. To pay bills
2. They wanted a Visa card
3. They wanted direct deposit
4. To avoid carrying cash
5. To shop online

Source: PreCash, Inc.

Related posts:

1. Prepaid Debit Cards — Survey Says Two Thumbs Up Many folks
2. Debit Cards are Passing Credit Cards in Popularity For the fi
3. Which is More Expensive: Check Cashers, Checking Accounts, or Prepaid Debit Cards? Most peopl

People often confuse TeleCheck with ChexSystems. Check out this short article to understand what TeleCheck is, and how it effects your check writing ability.

TeleCheck has been around for almost 40 years. They are currently owned by First Data Corp., a large financial services company. TeleCheck is in business to provide check processing services to merchants and banks.

According to TeleCheck, their role is to “make checks easier and safer for merchants to accept, while helping consumers prevent fraud and bounced checks.”

Here’s a brief description of how TeleCheck works…

If you have a checking account, and want to write a check to pay for groceries at your local supermarket, chances are the supermarket has a contract with TeleCheck. When you are at the checkout counter, look for a little TeleCheck sticker on the point of sale terminal. If you see one, the supermarket uses TeleCheck to process your check. Here’s a sample of the logo…

When you write your check, the cashier scans it at the cash register, and your check information is sent to one of TeleCheck’s databases. TeleCheck uses the information to tell the merchant whether you are in the TeleCheck database or not. (You don’t want to be in their database — if you are in it, it means you either have an unpaid check or some other debt outstanding that is listed in the TeleCheck database).

Whether you are in the database or not, TeleCheck sends a message back to the supermarket. The message has codes that tell the cash register whether you are in the database or not. If you are not in the database, your check will probably be approved, and you can happily take your groceries home. If you are in the database, the supermarket’s software decides whether to approve your check or not. (TeleCheck doesn’t approve or deny you — they just provide the information to the merchant).

Obviously, it is important to stay out of the TeleCheck database. If you bounce checks, or owe banks money, or owe merchants money based on checks you have written, you will end up being “flagged” by TeleCheck and will have a hard time writing checks in the future.

Related posts:

1. Want To Stay Off ChexSystems? Don’t Write Bad Checks Here's som
2. Why You Need a Bank Account Even if You Are On ChexSystems Being on t
3. Writing a Check: Don’t forget any Details This is th

There’s lots of talk about what a pain it is to end up on the ChexSystems list, but little talk about how to avoid the list in the first place. Here are 14 things to avoid to stay off the ChexSystems list.

1. If you owe your bank money – PAY IT.
2. Don’t bounce checks.
3. Don’t overdraw your account when using your ATM or debit card.
4. Don’t overdraw your account by authorizing an “ACH” debit when you won’t have money.
5. Don’t set up recurring ACH withdrawals (such as to payday lenders or other companies) when you are not absolutely sure that you won’t have more than enough each time the withdrawal time arrives.
6. Don’t “float” a check (never write a check if you don’t have sufficient funds on the day you write the check).
7. Don’t open a bank account using a made up name or alias.
8. Never give fraudulent or wrong information on a bank account application.
9. Don’t commit ANY kind of check fraud.
10. If you write a check that bounces, fix it immediately by contacting your bank and the person or company you made the check out to.
11. Never assume that a bank will close your account after you withdraw all the money—they won’t. Call them and ask them to actually close the account.
12. Always check your bank balance and balance your account. You always need to know how much money you have in your account.
13. If you move, make sure your bank knows your new address.
14. Always review your monthly statement, and watch out for any sign of identity theft or transactions you did not authorize.

These tips are usually pretty easy to follow. Follow these tips, and you should have no problem staying off ChexSystems.

Related posts:

1. Want To Stay Off ChexSystems? Don’t Write Bad Checks Here's som
2. Non ChexSystems Bank Tip — Washington Mutual Bank Here's a t
3. ChexSystems Problems? Welcome to