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I was curious about GoBank's check hold policy, whether it was indeed two weeks. I opened a GoBank account in March. It has about $300 in it. I just did a mobile deposit of a small check I wrote to myself. Sure enough, the money won't be available until the 18th. I was looking here, and it seems a bank has to let the first $100 be available. The check I wrote is on a personal account I've had with the same bank for decades. I've never written a bad check.

Hi XXXXXX,

We just wanted to let you know that the check you deposited on Tuesday 06/04/2013 for $20.00 has been submitted. The money will be available to spend on 6/18.

Sorry we couldn’t verify your check for immediate availability. Please read the note below from our check processor on why.

Here to help,
The GoBank Crew

Message from our check processor:
We’re sorry, but we are unable to proceed with your transaction. Our decision was based in whole or in part on information obtained from Certegy Check Services, Inc. (“Certegy”). Certegy provides authentication and risk management services to merchants and businesses nationwide.

Certegy is unable to tell you the specific reasons for the denial decision made by us, but can give you the information contained in Certegy’s file.

Under the Fair Credit Reporting Act, you have the right to obtain a free copy of your information held in Certegy’s file, if you request it no later than 60 days after you receive this notice. In addition, if you find that any information in Certegy’s file is inaccurate or incomplete, you have the right to dispute it with Certegy.

You may reach Certegy at www.askcertegy.com; toll free at 800-811-1519, or write to Certegy Check Services, Inc., P.O. Box 30046, Tampa, FL 33630-3046.

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The link you provided states:

FDIC Law said: When a bank places or extends a hold under this exception, it need not make the first $100 of a deposit available for withdrawal on the next business day, as otherwise would be required by § 229.10(c)(1)(vii). If the reasonable cause exception is invoked, the bank must include in the notice to its customer, required by § 229.13(g), the reason that the bank believes that the check is uncollectible.

So, in your case, the bank believes there is a reasonable cause that the check is noncollectable. They provided you with the information that they ascertained this with. In this case - it is the fact that they use a 3rd party (Certegy) to process and they believe there may be an issue. Why? No clue...so why don't you contact Certegy to find out what information they have on file for your accounts. I would be interested if this was my account.

It is possible that Certegy would do this to almost everyone's account. Either because they are ultra secure (it says they provide risk management) or perhaps part of their deal is they always take this route so as to secure a longer processing time for their customers. I'm not sure what that would do - except maybe give a bank a few extra days with the funds available to them and not you. It may be that Certegy is right now just configured by GoBank to take an "ultra secure" approach while GB is still in its early days while they work out any security kinks.

Oh - also you can check Certegy out here:

https://www.askcertegy.com/CheckSearch.jsp

That is for a declined check...but they might give you info on a delayed check too.

Another thing I though of is that Certegy doesn't provide this service for free...GB must be paying them to process. That being said, I bet they have different tiers for processing time and you pay more for quicker processing. Possibly GB is saving some money, especially during beta, using a lower tier of service?

I also found this under their FAQ:

Certegy FAQ said: Yes, in order to assist you in possibly avoiding a decline in the future, you can complete and submit to Certegy a Certegy VIP Application. Membership in the Certegy VIP program is free. By completing the Certegy VIP Application, we can assess any additional information not provided with your original check transaction. The additional information will elevate your check acceptance level in our system and help you to avoid most types of declines in the future. If you would like more information on how you can become a member of the Certegy VIP program to assist in future purchases using your checking account, you can click here to download and print the Certegy VIP Application.

Might be worth doing to help speed up transactions from vendors that use them.

BTW - If you are concerned with giving them all the financial info to enroll in their VIP - this is what wikipedia says about Certegy:

Wikipedia said: Certegy was a public corporation created in 2001 when Equifax spun off their payment services division. The corporation had two divisions of its own: check verification and credit cards. In September 2005, a merger with Fidelity Information Services, a subsidiary of Fidelity National Financial, was announced. The merger was completed in 2006. Although designed to be the surviving entity of the merger, Certegy's corporate name was changed as part of the merger agreement to Fidelity National Information Services, and the ticker symbol on the NYSE changed from CEY to FIS.1 Executive offices were relocated to Jacksonville, Florida, although manufacturing and operations remained in St. Petersburg, Florida.

So - basically they probably have access to all your info already.

I just requested my Certegy report. I don't expect anything in it. This is probably because of the set-up GoBank has. I just question if they can have a two week hold as a matter of policy. I searched for my check on their site. No results. So delayed is not searchable like declined.

I won't bother signing up for Certegy VIP. I hardly write checks anymore, and that's mainly to pay bills that I can't pay electronically. My life won't end if small banks/sites like these hold my checks.

I'm just testing them here. Such a long hold policy won't do wonders for customer service. Their fees are based on what the customer wants to pay (zero to $9 a month). Two week holds are not a way to impress customers, let alone expect a customer to shower them with money.

burgerwars said:    I just question if they can have a two week hold as a matter of policy.
Review Regulation CC on the availability of funds and collection of checks at the federal reserve website here: http://www.federalreserve.gov/bankinforeg/reglisting.htm#CC

*Note, there are more exceptions than rules, so you can probably answer your own question after careful review.

burgerwars said:   I just requested my Certegy report. I don't expect anything in it. This is probably because of the set-up GoBank has. I just question if they can have a two week hold as a matter of policy. I searched for my check on their site. No results. So delayed is not searchable like declined.

I won't bother signing up for Certegy VIP. I hardly write checks anymore, and that's mainly to pay bills that I can't pay electronically. My life won't end if small banks/sites like these hold my checks.

I'm just testing them here. Such a long hold policy won't do wonders for customer service. Their fees are based on what the customer wants to pay (zero to $9 a month). Two week holds are not a way to impress customers, let alone expect a customer to shower them with money.


Remember - they are still in Beta. So far my experience with them is that they are trying hard from a customer service perspective, but just don't have all their ducks in a row yet. In fact I would say they are trying double hard customer service wise because they are aware of this fact.

I'll go ahead and try a check deposit myself if I'm able to and let you know... now that I think about it, it may very well be that the fact you wrote the check to yourself is what raised the red flags as that is not a very common concurrence.

Today I deposited a small check I received from Blue Cross. GoBank credited me immediately. They trust insurance companies aren't going to write bad checks.

Just to add a point of reference, the same thing just happened to me today, albeit it was with BoA. Mobile deposited a check for $1,000 on Sat. and got a hold for 3 biz days. It was supposed to come off today but I found out that they extended the hold to next Tuesday. Obviously pissed off since I deposited the same check amount multiple times before into an another (older) BoA checking with no hold. Eventually found out that a bank can hold a check for 7 biz days...

deleted

myndreamland said:   Just to add a point of reference, the same thing just happened to me today, albeit it was with BoA. Mobile deposited a check for $1,000 on Sat. and got a hold for 3 biz days. It was supposed to come off today but I found out that they extended the hold to next Tuesday. Obviously pissed off since I deposited the same check amount multiple times before into an another (older) BoA checking with no hold. Eventually found out that a bank can hold a check for 7 biz days...

Depositing the same amount into another bank has nothing to do with Go Bank. How would they know that chequing account history? Most, if not all, financial institutions will hold a cheque for a while if it's a higher amount then you usually deposit; especially for new accounts.

Let us know what your certegy report says

Chances are it won't say anything and this was a form letter replying which case you should send their reply and the certegy report to gobank CEO and demand a personalized reply explaining exactly what is going on

mjoply said:   myndreamland said:   Just to add a point of reference, the same thing just happened to me today, albeit it was with BoA. Mobile deposited a check for $1,000 on Sat. and got a hold for 3 biz days. It was supposed to come off today but I found out that they extended the hold to next Tuesday. Obviously pissed off since I deposited the same check amount multiple times before into an another (older) BoA checking with no hold. Eventually found out that a bank can hold a check for 7 biz days...

Depositing the same amount into another bank has nothing to do with Go Bank. How would they know that chequing account history? Most, if not all, financial institutions will hold a cheque for a while if it's a higher amount then you usually deposit; especially for new accounts.


Well, just want to say that there is a legal exception for them to hold onto a check as OP is a new customer (less than 1 mo). Otherwise, the hold shouldn't be 2 weeks. For me personally, I will dispute with BoA today and see what they give for holding my check until next Tuesday.



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