Ravenous Wolf


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Granted, I have been out of banking world for a long time and the new toxic atmosphere has totally changed in how many, if not most of the banks operate. But I got my first two bounced checks YEARS...

I called up the customer service rep and they looked in the history of my account and she agreed that I never bounced a check before so they reversed the two NSF charges (but they won't do it again).

They also gave me a brief explanation of their process. I knew the money was there but I was running low on funds. Consequently, I transfered money from another checking accounting (which I am trying to build an emergency fund) to what is more or less my primary checking account (the account that was running low). Besides, there was still enough cash to cover most of the stuff that was pending.

Now here is where I am unclear. Maybe it has always been this way but I just don't remember it being so.

The banks I worked at operated in a FIFO system. That is, first in, first out, so as along as the cash was in there, regardless if it was when it was put deposited, then it would be used to cover the pending transactions that became due.

But what the customer service rep described to me sound more like a LIFO system, last in, first out. So in other words, even if there was cash sitting in my account, a pending transaction claimed that particular cash until the transaction was finally processed. And since one of my bounced transactions was a "checkcard" transaction, it was "pending" for a very long time (some check card transactions do remain as pending for a long while).

So in other words, if it is indeed a LIFO system (from check card transactions), then I definitely have to know what was in there and who it was for.

I know it is no longer possible to float checks. I used to be the King of Floating, but those days are long past me with how everything is electronic. But I was just curious to how the banking operates in that respect, especially in what has chanced since I have been in the business.

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The old way of doing things as a consumer impossible. Not only does FIFO no longer apply, these jerk banks are trying hard to trick people into OPTING IN to the paying fees when state and federal statutes are making fees based on overdrafts illegal when passive.

A certain very major player announced late February early March to do away with paying for ATM transactions when there were insufficient funds to cover the transactions. This on the surfaces sounds really good until you peel back the cover and look at the millions paid out in bonuses because of the profits generated from running later transactions first and racking up multiple overdraft fees.

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I'm not sure when the change was made, but banks now process all debits FIRSt, charge any fees, and then process credits.

My co-workers told me a litany of tales about that so it was a rude awakening for me. For example, making a mortgage payment means having a big wad of cash in the bank which sits there since many electronic transfers takes a while to process. So some of my co-workers "thought" they still had plenty of money available and bought a big ticket item.

BAM... they got hit with reality.

Banks always had a FIFO system because it required powerful software to turn it into LIFO. My work experience of years ago was with mainframes so this kind of computing power doesn't come cheap.

However, times and technology has changed.

The cell phone that an elementary school kid toys with is much more sophisticated and powerful than what people could only dream of twenty years ago.

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