Usually, when I pay with a check, I write it out and sign it, or I direct my bank to send it on my behalf. But what if a check is drawn on my account but I didn’t write it, sign it, or tell my bank to send it? It can happen if someone has your bank account number: they can use your number to create a check that takes money out of your account. Now, if you’d already agreed to the charges, there’s no problem. But what if you didn’t? That means this check is part of a scam – which is what the FTC says happened in a case announced today. Show
The FTC sued several companies and individuals for allegedly taking millions of dollars out of people’s accounts using remotely created checks – without the account owners’ authorization. The defendants had websites and made telemarketing calls that offered short-term loans and cash advances to people with bad credit. To get access to that money, people gave their bank account information. But the FTC says the defendants actually signed people up for online discount membership clubs – and charged for them. People had not agreed to that, and it only made their situations worse. When people complained to the company, the FTC says the defendants lied to confuse people into thinking they had, in fact, approved those charges. Here are three things you can do to outsmart scammers.
Transfer money and pay billsQuickly and securely pay your bills or other people, without cash or writing a checkEnroll Now Sign OnTransfer moneyEasily move money between your Wells Fargo accounts, as well as your accounts at other U.S. financial institutions. Transfers Pay billsUse Bill Pay to send a payment to a company or person in the U.S. Bill Pay Add cards to digital walletUse it to quickly pay in participating stores, online or in apps, as well as access any Wells Fargo ATM., Digital Wallet Send and receive moneySend and receive money with Zelle®. Using an email address or U.S. mobile number, send money in minutes. Zelle® Wire moneyWire money to business and personal accounts around the globe. Set up recipients, send wires, and view history. Wires Send money to family abroadUse this affordable and secure way to send remittances to family and friends in 13 countries throughout Latin America and Asia. ExpressSend® Definition and Example of a Check CardA check card, or debit card, is a card that is coupled with your checking account. When you use it to make a purchase, the money for your transaction is drawn from your bank account. A check card is like a plastic version of a check, but it is more convenient to use, because it is more widely accepted. Many stores will not take paper checks, but most will take check cards. Check cards are a popular option for people who want to pay with a card but either can't get or don't want to use a credit card. Unlike a credit card, it is not a form of borrowing money. You do not have to pay a bill or interest on your purchases. You also do not build credit with a check card, because you are not borrowing anything in order to use it.
You can use your check card to buy things or pay bills. For instance, you may be able to use your check card to pay your power bill online or pay a medical bill. You can also use it when you buy something either online or in person. In all of these instances, the money will be taken out of your checking account. How Check Cards WorkHow you use your check card will depend on whether you are making a purchase in person, either as a "debit" or "credit" transaction, or online. You can also use a check card to withdraw cash from your checking account. NoteWhen you use a check card, you can only make purchases or withdraw cash up to the amount that you currently have in your checking account. If you try to use more money than is available in the account connected to the card, your transaction will be declined. You may also be charged an overdraft fee. Making a Payment in PersonWhen you use your check card in person, you'll be asked to swipe it through a card reader. If your check card has a chip, you will need to insert it into the chip reader slot. Some card readers also work by merely tapping the machine with your card. You will be prompted to enter your personal identification number (PIN), which is usually a four-digit number that you have selected. NoteThe PIN you choose for your check card is like an authorization code. Be sure to keep it private so no one else can use your card. Once the transaction is processed, the payment is withdrawn immediately from your checking account. Using the "Credit" Option With Your Check CardCheck card payments can often be processed as either "debit" or "credit" transactions. Some businesses will simply process every card as a credit transaction. Other times, you may be asked whether you'd prefer a credit or debit transaction. For a credit transaction, you will be asked to swipe or insert your card as usual, but you will need to sign a receipt rather than entering your PIN. Even if your payment is processed as a credit transaction, the funds are still debited directly from your checking account. Making a Payment OnlineYou can use your check card to make a payment online or over the phone. When prompted, you will need to either say or enter the information associated with your check card. This usually includes:
Sometimes you may also need to provide the type of card (e.g., Visa, MasterCard) and the card's security code. The security code, sometimes called a "CVV code" or "CID (card identification) number," is different from your PIN. On most check cards, the security code is a three-digit number printed on the signature panel on the back of the card. Some cards, like American Express, have a four-digit security code printed on the front of the card,above the main card number. NoteWhen you use your debit card to pay online or over the phone, the transaction is being processed as "credit" rather than "debit." You do not need to give your pin for this type of transaction. Using Your Check Card to Get CashYou can also use your check card to withdraw cash from your checking account at a bank or ATM. You can withdraw cash using your check card at a branch of the bank where your checking account is located. Give your check card to a teller, and tell them how much you want to withdraw. They will either process the transaction for you or ask you to use a card reader to enter your information. To withdraw cash from an ATM, insert your check card into the designated slot, and follow the prompts on the screen to select how much you want to withdraw. With most check cards, you can withdraw cash from any ATM. However, depending on the terms of your checking account, you may be charged a fee to use an ATM at a bank where you are not a member. NoteMany check cards also allow you to use the "get cashback" option to withdraw cash from your account when making a purchase. You can select this option after entering your PIN on the card reader. In most cases, you can only get cashback if you are making a debit, rather than credit, transaction. Do I Need a Check Card?Not everyone needs a check card, but they are good to have if you have a checking account. Check cards allow you to:
Check cards are a good alternative to using personal checks. Many businesses no longer accept paper checks, but most will accept check cards. Businesses that don't take check cards are the same ones that won't take credit cards either. Most commonly, these places are cash-only establishments and seek to avoid the fees that merchants must pay to use debit and credit cards. Alternatives to Check CardsIf you don't have (or don't want to use) a check card, there are other forms of payment available:
Check Cards vs. Debit CardsA check card and a debit card both refer to a payment card that draws money from a checking account to pay for transactions. These cards are more commonly referred to as "debit cards." The term "check card" is also used by some companies as part of branded debit card names, such as the Visa Check Card. Branded check or debit cards may have unique features or limitations that are outlined in their card agreements. Pros and Cons of Check CardsPros
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Key Takeaways
What does CHK mean on a bank statement?CHQ. Cheque. Document that orders payment of money from a bank account to another person or organisation.
Does Bank of America allow Echecks?Bank of America uses different Routing Numbers for their E-Check transactions. DO NOT use the routing number shown on the bottom of a BofA check!
How do I pay online with a check?By paying with a check online.
You typically have to enter the routing and account number from your check and then indicate how much you want to pay and when. Often, you can save the payment information so you can pay with a check in the future without entering the routing and account number again.
What is a Checkcard transaction?A check card, or debit card, is a card that is coupled with your checking account. When you use it to make a purchase, the money for your transaction is drawn from your bank account. A check card is like a plastic version of a check, but it is more convenient to use, because it is more widely accepted.
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