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Regions Bank and Deposit Holds
Posted on 7/27/20 at 9:46 am
Posted on 7/27/20 at 9:46 am
on Friday my payroll checks for my employees got delayed due to UPS driver getting into an accident. Most of the employees were OK in waiting until this morning to receive their checks but a few really needed them. So I wrote out about 12 payroll checks to my employees that needed them....all total, about 20,000.00. I don't bank with Regions so I don't know their policy.
But 2 of my people do. They took the checks and mobile deposited them before the cut off . They knew funds would not be available until the next day , on Saturday. But both got notice of a hold on their deposits that could last up to 11 days?
After writing the checks to them I still have 17000.00 in payroll and the 20,000.00 can be reapplied to the account. What is with this?
But 2 of my people do. They took the checks and mobile deposited them before the cut off . They knew funds would not be available until the next day , on Saturday. But both got notice of a hold on their deposits that could last up to 11 days?
After writing the checks to them I still have 17000.00 in payroll and the 20,000.00 can be reapplied to the account. What is with this?
8
Posted on 7/27/20 at 9:52 am to KiwiHead
Call your bank and call regions. Get them on a 3 way to verify funds are available. Depending on amount of checks, they can go to underwriting. I’ve had it happen before and the guy at regions told me to do it this way in the future if ever happened again
Posted on 7/27/20 at 9:53 am to KiwiHead
quote:This is a very confusing thread.
What is with this?
What are you wanting to know?
Are you asking if Regions Bank can put a hold on a check deposited to their customer's account if that check is drawn on another bank?
The answer is yes, especially if that customer's collected balance is less than the amount of the foreign check being deposited.
Posted on 7/27/20 at 10:38 am to KiwiHead
There are several reasons they can hold checks. New accounts, if the accounts have previously been overdrawn, amounts in excess of $5,000. Cashier’s checks or certified checks are better in this instance. Also, you note they would be available on Saturday, but Saturday’s are not business days, even if banks have branches that are open on Saturday.
Posted on 7/27/20 at 10:49 am to KiwiHead
A quick call to your banker should allow the held checks to clear.
If I am in your shoes then going forward I would require direct deposit or have the employees set up with pay cards. A lot of businesses don't even allow paper payroll checks anymore.
Also, if you are ever in a situation where your employees or vendors need money immediately, wire it.
If I am in your shoes then going forward I would require direct deposit or have the employees set up with pay cards. A lot of businesses don't even allow paper payroll checks anymore.
Also, if you are ever in a situation where your employees or vendors need money immediately, wire it.
Posted on 7/27/20 at 11:05 am to go ta hell ole miss
From what I understand if you deposit the check before 7 pm, the funds are available the next morning or the morning of the next business day. I am thinking that because I issued a written check it threw off the algorithim or whatever and triggered the action.
I'm thinking that I will simply paypal out of my business account . Stop payment on the live check and eat the fee since this was sort of my frick up indirectly
She is a reliable employee who has been with the company for 6 years and I have seen the information from Regions on the hold. A few bucks spent to ease anxiety on a good employee is good. No one should have to deal with b.s. of having almost no money for 11 days especially when they earned their money....and she did EARN that money. My business could not operate without her.
Regions is NOT gonna make overdraft fee income off her because of this. If she overspends after the check goes thtough, that is a different matter.
I'm thinking that I will simply paypal out of my business account . Stop payment on the live check and eat the fee since this was sort of my frick up indirectly
She is a reliable employee who has been with the company for 6 years and I have seen the information from Regions on the hold. A few bucks spent to ease anxiety on a good employee is good. No one should have to deal with b.s. of having almost no money for 11 days especially when they earned their money....and she did EARN that money. My business could not operate without her.
Regions is NOT gonna make overdraft fee income off her because of this. If she overspends after the check goes thtough, that is a different matter.
Posted on 7/27/20 at 11:19 am to KiwiHead
Not uncommon for banks to place a hold on deposited checks, especially as ole miss stated if it's over certain amount or more than what's in the account.
I deposit checks >10k regularly and get notices all the time that may funds may not be available for 10 business days.
I've never seen it personally take the 10 days. Usually 1-3 business days at most for me.
With that said, in your situation, it hasn't even been 1 business day. You can probably clear this up with a couple of phone calls to your bank. Usually someone can override and release the funds sooner if needed. S
I deposit checks >10k regularly and get notices all the time that may funds may not be available for 10 business days.
I've never seen it personally take the 10 days. Usually 1-3 business days at most for me.
With that said, in your situation, it hasn't even been 1 business day. You can probably clear this up with a couple of phone calls to your bank. Usually someone can override and release the funds sooner if needed. S
This post was edited on 7/27/20 at 11:21 am
Posted on 7/27/20 at 12:29 pm to KiwiHead
My understanding, is the 11 days in the maximum they will hold the funds. If your bank clears the check sooner, Regions will release the funds sooner.
Also, most banks do not hold payroll checks. If your employee calls their bank, they may be able to explain this is a payroll check and the banks will often overwrite the hold.
Also, most banks do not hold payroll checks. If your employee calls their bank, they may be able to explain this is a payroll check and the banks will often overwrite the hold.
Posted on 7/27/20 at 1:26 pm to KiwiHead
Lot of good suggestions here, but I'm wondering why so many of your employees are still getting payroll checks.
I can understand employees who don't have checking accounts, getting payroll checks and cashing them at your bank, but that's not the case here.
You seem like you really want to help your employees (which is great!), maybe this is an area where you can help them by encouraging them to get direct deposit, or by helping them figure out any obstacles to it?
I can understand employees who don't have checking accounts, getting payroll checks and cashing them at your bank, but that's not the case here.
You seem like you really want to help your employees (which is great!), maybe this is an area where you can help them by encouraging them to get direct deposit, or by helping them figure out any obstacles to it?
Posted on 7/27/20 at 1:58 pm to LSUFanHouston
most banks charge the employer a fee for direct deposit.
it’s not backbreaking but is a fee
it’s why I still write paper checks
it’s not backbreaking but is a fee
it’s why I still write paper checks
Posted on 7/27/20 at 2:42 pm to cgrand
Because paper checks are a huge pain in the arse, some payroll providers will actually cover direct deposit fees for you. Also, paper checks can sometimes be more expensive once you factor in costs like time spent running checks, purchase of check stock, and MICR ink (which is a lot pricier than normal ink.) Might be worth running an analysis on regardless.
Posted on 7/27/20 at 2:58 pm to FinleyStreet
quote:
Because paper checks are a huge pain in the arse, some payroll providers will actually cover direct deposit fees for you. Also, paper checks can sometimes be more expensive once you factor in costs like time spent running checks, purchase of check stock, and MICR ink (which is a lot pricier than normal ink.) Might be worth running an analysis on regardless.
NFIB did an analysis of this a few years ago.
LINK
quote:
It is commonly estimated that each "hardcopy" salary check a small company writes costs about $1 (considering employee bookkeeping time). This can increase significantly in instances of check fraud or lost checks. Lost employee time for depositing checks is estimated at about $2 per employee. The total cost per written "hardcopy" check is thus approximately $3. Clearly, this is an estimate, and will vary widely from company to company.
In the example above, the company with ten employees will pay about $16.50 for direct depositing all 10 employee salary checks. If all ten employees were paid using traditional checks, costs would be about $30. Thus, a savings of about $13.50 could be achieved each pay period.
Realistically speaking, once accounts are set up with a bank, direct deposit costs most small companies about the same or less than using traditional checks. Perhaps the main benefit of direct deposit for employers is the convenience for employees. The reduced risk of fraud, stolen checks or lost checks, however, can also be significant long-term benefits of direct deposit.
Posted on 7/27/20 at 8:05 pm to KiwiHead
quote:
I don't bank with Regions so I don't know their policy.
Do you have a good relationship / point of contact with your bank? They can help make this a non issue.
Posted on 7/28/20 at 6:35 am to KiwiHead
From the confessions of a Crapital One mobile depositor. They such last week I deposited a small check because I wouldn’t make to the ATM on time. Unfortunately, my check wasn’t clear enough and they rejected it. They did this while showing I had access to those funds right away. A day later they rejected the check and overdrafted me because I had a withdrawal the next day. I had to call to find out what happened, and they told me to redeposit the check at an ATM. They even said that your rejection would be mailed to you. Mailed, that could take 7 to 10 business days. An email alert would me more sufficient. No wonder they are closing branches and losing customers.
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