Interesting check processing experience

[Karen G]

Last week I mailed in our estimated tax payment check along with the printed coupon showing our tax ID info and amount. As I dropped the envelope into the mailbox at the post office I had this kind of sinking feeling that something wasn't right. Yesterday when checking our bank account online I saw that the check had cleared. I pulled up a picture of the check and saw that I hadn't completed writing out the amount in words although I did put the right amount in figures. I also neglected to SIGN the check or write our tax ID numbers on the check in the lower left!

The check cleared our bank account with no problem and no notification from the bank or the IRS. I wonder what would happen if someone stole one of our checks and filled it out in a similar fashion with no signature and incomplete amount in words.

 

[klpca]

Last week I mailed in our estimated tax payment check along with the printed coupon showing our tax ID info and amount. As I dropped the envelope into the mailbox at the post office I had this kind of sinking feeling that something wasn't right. Yesterday when checking our bank account online I saw that the check had cleared. I pulled up a picture of the check and saw that I hadn't completed writing out the amount in words although I did put the right amount in figures. I also neglected to SIGN the check or write our tax ID numbers on the check in the lower left!

The check cleared our bank account with no problem and no notification from the bank or the IRS. I wonder what would happen if someone stole one of our checks and filled it out in a similar fashion with no signature and incomplete amount in words.

I think that a lot of our processes are automated these days and the computer just does a quick scan.

My boss handed me my paycheck one day (he is super-duper old school) and he forgot to sign it and I didn't notice. I use an app to deposit my checks, so I deposited it. My bank (Charles Schwab) notified me in about 30 minutes that the deposit had not been accepted and noted the lack of a signature. Of course, I just had to have my boss sign the check and I redeposited it in about 2 minutes. It was quickly accepted. I guess that the IRS has a special relationship with the banks. Once they have possession, they must be good to go! Me, not so much.

 

[davidvel]

I agree that this likely wouldn't have happened to anyone else, but the IRS. The banks (yours and theirs) probably figured they weren't in the business of depositing fraudulent checks, and they were good for the funds if so.

 

[rickandcindy23]

Since you can pay anything using your routing and checking account numbers without signature, I suppose that is all that is needed.

 

[Brett]

Since you can pay anything using your routing and checking account numbers without signature, I suppose that is all that is needed.

right, - I once wrote a check several years ago and it was returned because the bank said they couldn't read the written amount or didn't match the numeric amount. I guess the IRS has different standards

 

[VacationForever]

Since you can pay anything using your routing and checking account numbers without signature, I suppose that is all that is needed.

That is a scary thought.

 

[Brett]

That is a scary thought.

there's actually a little more to it than just the routing and account number. but yes, online payment fraud is scary.

 

[controller1]

Even back more than 15 years ago (I've done online bill pay for at least 18 years) when I was still writing some checks for bills I had at least three checks clear without a signature.

 

[Talent312]

It's rare for the bank on which the check is drawn to actually put eyes on and "approve" a check.

When a check is deposited elsewhere, a clearing facility (like a Federal Reserve Bank) handles it as an electronic transaction, debiting the payor's account and crediting the payee. The actual return of the check to the payor's bank is a side event.
Source: https://wallethub.com/edu/check-processing/14282/

In this case, the receiving bank simply had enuff info from the check to run the electronic process.

 

[dioxide45]

If someone stole your checkbook and did the same, I suspect it would be easy to dispute it with the bank. With no signature, I would suspect the bank would reverse the transaction and send the check back as not paid. Funds still don't move instantly in the check clearing world. Faster than they did before 911, but still not instantly.