Future of Check Runs...

[HAZ-MAT]

I'm guessing to say 2 Van runs out of there... USC208 and another run on the weekend.If you call it a day run... There is a monday thru thursday run that starts at around 230ish and gets done around midnight... and i believe there is also a weekend run that is semi day time. When i say day time, your either checking out, or crawling into bed around 3am. My run is predominatly bank, but there have been some interesting things i've loaded recently. I have confidence in the company, and that they are/were prepaired for what is coming.

 

[ShyFlyGuy]

A new era for banking: ‘substitute checks’

By MARY-BETH McLAUGHLIN
BLADE BUSINESS WRITER



Bank statement mailings may be a lot slimmer this fall because of changes in how checks are processed.

Starting Oct. 28, a new federal law gives banks the option of replacing original paper checks with “substitute checks” that are made from digital copies of the originals, with the check information traveling between banks over computer lines.

That differs from the common practice now, which has actual checks being returned to a customer’s bank by plane, train, and automobile, and then having that bank either send back the actual cancelled checks or imaged copies.

Such electronic processing is not mandated, but many banks will probably opt for it because it will cut down on the time and money it costs to process checks, said John Hall, a spokesman for the American Bankers Association in Washington.

“This brings banking from the Pony Express era to the computer age,” he said.

The substitute checks will be accepted as legal copies of the originals and a typical period between when a check is cashed out of town and when it is cleared by the authored bank of four to eight days should be cut to 24 hours. The change will make it more difficult to embezzle from a bank using this type of “float” fraud, said banking experts. The clearance time for a check cashed in town will remain 24 hours, they said.

The new law, called Check Clearing for the 21st Century Act, will help banks, saving them millions of dollars in check processing costs, experts said. One estimate said the cost is as high as $250 million a year nationwide.

Consumers, however, will see less of a benefit. Experts said it will be more certain their bills are paid, given the electronic transaction rather than transportation of the checks.

Just over a third of bank customers receive their cancelled checks with their statements, said Mr. Hall of the bankers association. And many of them pay $2 to $4 a month for that arrangement.

Once banks make the switch this fall, customers will be able to request photocopies of the front and back of a check.

“What most people want to use their [cancelled] checks for is to balance their account, and these will satisfy that need,” Mr. Hall said.
For banks, a key benefit is faster information and the better chance of catching fraud, either check forging or kiting, said Mark Kneirem of KeyBank.

For users, it should help, too, a National City Bank spokesman said.
“This will actually speed up the availability of funds for customers ... and there are fewer errors that will happen,” said Jeff Langenderfer.

Those aspects are attractive to business owners, many of whom will have the option of installing equipment that will allow them to capture check images at their place of business and transmit the electronic check files to banks around the clock, eliminating the need for late-night deposit runs.

Businesses would need to buy computer software to handle such activity, costing $200 to $15,000, a Huntington National Bank spokesman said.

Contact Mary-Beth McLaughlin [email protected]r 419-724-6199.

 

[Bryan D]

Hey, thanks man. That makes this all make sense.

Basically, it seems that there is going to be a substantial investment initially for each bank (ie. Bank of America, 1st Source, National City, etc.), but that the savings over the long term will be substantial enough that the transportation of checks as we know it will cease to exist. This does not look good for Homestar. I think I'm going to have to factor this into negotiations with my boss. Thanks again.

Shy

www.homestarruner.com

I read an article in the Wall Street Journal on Check 21 a couple of months ago. It stated that most large banks are opposed to this legislation because the few days that it takes a paper check to be transported and processed equates to millions (or was it billions?) of dollars in interest in their favor. In other words, the bank gets to use your money a few days longer than with electronic transfer.

 

[zuka]

A new era for banking: ‘substitute checks’

Businesses would need to buy computer software to handle such activity, costing $200 to $15,000, a Huntington National Bank spokesman said.

Contact Mary-Beth McLaughlin [email protected]r 419-724-6199.

Only $200 to $15,000 for the software? That seems awefully cheap to me. At that price it will seem REALLY attractive to the banks and they will want to implement it fast.

Anybody know about how much a bank pays an air courier for check transfer services? Lets assume a route involves 3 hrs flying time a day (hypothetical). Let's say the bank is paying $200/hr to courier for a baron or navajo and pilot (sounds cheap to me and is probally a lot more). multiple this by 5 days a week that's $3000 a week or $12000 a month. I know they probally bid by the mile or something different but either way it's got to be in the neighbourhood of $10,000's per month per route. At that rate, $15,000 top end price for software would be a no brainer. It would pay for itself in just over month!

 

[ShyFlyGuy]

$15,000 top end price for software would be a no brainer. It would pay for itself in just over month!

Exactly.

Printers all across the nation are printing out updated resumes. Good luck in your job searches, fellas.

Shy

 

[starcheck1]

The two runs I used to fly in the northeast were about 95% checks....they will be pretty light when the checks go away...whenever that is.....

 

[icefr8dawg]

After speaking to several Wall St. Analysts, guys specializing in bank proscessing companies, the consensus is that the big banks have the technology in the bag and the smaller regionals will outsource or buy the tech from the larger bank's or their associated technology companies. A poll of wall street is good enough for me to decide not to invest in a bankwork only company. I'm talking $$'s mostly here. I wouldn't think twice about flying for a check only firm if it were the only deal offered to me. After all, wouldn't a training agreement be nullified if there were no flying to be done?
Airnet is still a great place to build time. They seem to be busting their asses to diversify, ala their last Q filing. I'm friends with some folks there and they say the ratio shifts more towards express as time goes on. The banks won't turn the check's off overnight either. From what I've seen it's going to be a slow drawdown. This I am certain of.

 

[DrRaptor]

Airnet is still a great place to build time. They seem to be busting their asses to diversify, ala their last Q filing. I'm friends with some folks there and they say the ratio shifts more towards express as time goes on. The banks won't turn the check's off overnight either. From what I've seen it's going to be a slow drawdown. This I am certain of.

Also, looking out my window through the hangar, out the open door, and past the tail of both N156PA and N99380, I can see that their new campus here at Rickenbacker is coming together nicely, so it won't be more than another 3 or 4 months before they move out of that little building at Columbus and start flying from across the ramp. I think the fact that they've got the money to invest in such a large project means that they've got the money to stick around a while.

 

[wings421]

How is that building coming? Is it framed yet?

 

[starcheck1]

All that extra $$

Wow...all that extra money to spend on new paint jobs and a new operations center at Rickenbacker ...and the lucky pilots now get to have performance based pay raises, no more floater pay, and possible change of overtime pay to a 12 hr day...knock knock....wait a sec ...I think I hear the Teamsters at the door.