[moneydance] Observe Payment Date Restrictions ignored in MD 528

[David Carlson]

Larry Alkoff wrote:
> David do you have any method of telling whether a payment is made by 
> bank drafted paper check, EFT or Electronified Check"?
>
> Larry
>
>
> David Carlson wrote:
>   
>> Jon, et alia,
>>
>> In the U.S., at least, there is a fairly new form of payment called the 
>> "Electronified Check" where a certified electronic image of the check is 
>> used by the Federal Reserve clearing house rather than the paper check.  
>> This reduces the float for paper checks to same day processing. Vendors, 
>> after some delay, are now starting to pick up on this to get their money 
>> faster.  I had two "Electronified Checks" clear last month, after 
>> writing paper checks.
>>
>> Dave
>>
>> Jon D. Slater wrote:
>>     
>>> It actually depends on whether the paper checks being mailed have your
>>> account and routing information on them, or if your bank transfers the 
>>> money
>>> into some Mega-pool of money and writes checks from it.  Transferring the
>>> money into their pool will immediately deduct it from your account.  
>>> Then it
>>> may take, up to 7 days before the check clears the banks account.
>>>
>>> The advantage for the bank using the pool-o-money approach is they can 
>>> earn
>>> money on the pool until their check (on your behalf) actually clears.
>>>
>>> This is how many banks are able to offer free on-line banking.  A large
>>> financial institution can more than recoup their costs (in software,
>>> postage, labor, and processing fees) this way.
>>>
>>> Say you and 5000 fellow bank customers all send a $2000 mortgage payment,
>>> which the bank pays from their mega-pool.  If it takes 7 days for the 
>>> check
>>> to actually clear, they have $10,000,000 of their customers money to 
>>> 'play
>>> with' until the checks actually clear.
>>>
>>> Add to that all of the electric/water/phone/etc bills they process in a
>>> month.
>>>
>>> Just a possibility.
>>>
>>> Jon
>>> (A former bank employee)
>>>
>>>
>>>
>>>  
>>>       
>>>> -----Original Message-----
>>>> From: moneydance-info-bounces at moneydance.com [mailto:moneydance-info-
>>>> bounces at moneydance.com] On Behalf Of Joe Menola
>>>> Sent: Friday, June 23, 2006 5:19 PM
>>>> To: General discussion related to Moneydance
>>>> Subject: Re: [moneydance] Observe Payment Date Restrictions ignored 
>>>> in MD
>>>> 528
>>>>
>>>> On Friday 23 June 2006 10:13 am, Kevin O. Lepard wrote:
>>>>
>>>> For eft payments, the day it is sent is day it is received (the transfer
>>>> actually happens in a matter of seconds), so deduction at that time is
>>>> appropriate.
>>>> As for sending paper checks on your behave...the issue of the check, is
>>>> much
>>>> the same as the receipt of one you've written, when a check you've 
>>>> written
>>>> is
>>>> presented to the bank, they don't wait until the other person has those
>>>> funds
>>>> available to deduct it, it gets deducted when the receive it do they?
>>>> Once they send that check it must be deducted from their assets and
>>>> therefore
>>>> from yours to balance the books.
>>>> Funny, I noticed no complaints about not having to pay the postage to 
>>>> send
>>>> that check...;)
>>>>
>>>> -jm
>>>>         
>
>
>
>
>   
Larry

I use a local bank in Antioch, Illinois(State Bank of the Lakes) which 
just recently started allowing downloads directly to Quicken 2004 and 
newer.  I'm not sure if I can download directly to MD, as I have not 
tried it yet.  I probably can, if it has been added to MD's list.
To answer your question, the description always includes information 
such as pre-authorized deposit or withdrawal(ie EFT), check number(when 
there is one) and electronified check(if it is). Internal transfers 
between accounts are so identified, as are electronic payments that I 
made via the bank's electronic payment service, or electronic payments 
initiated through the credit card or utility's website.  When there is 
no check number, there is some other reference number to identify the 
transaction in their records.
They also include images of checks and deposit slips with the paper 
monthly statements.  The only thing missing is PDF copies of statements 
online.
Interestingly, all types of electronic payments are charged to my 
account when they clear, not when they are initiated, unlike BoA.  Paper 
checks, of course, are charged when they clear.
Check out local banks in your area.  Often they are better than the big 
boys!

Dave