Don't know if it is appropriate to post a thread like this here as it is not related to funds or even investing but should be relevant to some members here and may require some action on their part. It is my first new thread. Please delete if inappropriate.
Bank of America changed its Bill Pay processing sometime this year without any notification I am aware of. Before when I sent someone a check via Bill Pay, it would show as processed in Bill Pay and the amount would be deducted WHEN the check was received and deposited. After it cleared, I could see the images of the front and back. Now the payment gets recorded as cleared on the deliver by date you specify and nothing else happens when the recipient actually deposits the check. No check images even when a physical check is sent.
So, I called up BoA and had a chat. Turns out there are two modes of payment and they have automatically switched everyone to this new system. But you can call and have them switch back to the previous method. I tried hard to find out what the advantages of the new system is to me or the disadvantages in staying with the older mode, She could not provide anything.
I can see a lot of disadvantages to me with the new mode. I get no indication of whether a check has reached/cleared, no canceled check image and if I suspect a check is lost nothing I can do pro-actively. Lot of advantages for the bank like a free flaot up to 90 days or cashed like a banker's draft. In the older mode, if you suspected the check was not received, you could just cancel that check and immediately send another one. Now, you cannot unless you have additional funds to cover it or wait until they process the cancelation and deposit funds back (one of the reasons I prefer credit cards over debit cards).
Don't know if all banks have switched to this. Anyway, if this applies to you, you can call them and have your account switch back to the previous mode.
If using for Bill Pay for electronic transfers to utiities, etc, may not make any difference but if you are running a business (even a small one) where you use it to pay individuals or one-ofs, it will likely make a difference.
Comments
Well, with a fee, often, right?
I guess I'm not clearly seeing the problems, and surely the switch back to the way it was is temporary, don't you think?
I have a petty checking account with BofA (only to get a boost in cashback rewards on their credit card). It's a legacy eChecking account that would charge me money if I were to do an EFT transfer to my "real" account, so I use its Bill Pay to mail me a check that I deposit instead.
Last time I did this was early December. I deposited the check Dec. 8th (days after receiving the check from BofA). BofA debited my account when the check was deposited, not before. And their online system still shows me an image of the cleared check.
Along these lines - Fidelity improved its bill pay several months ago. You used to have to go to the account to see whether a check had cleared; now the bill pay system shows outstanding (mailed, not cleared) checks as well as pending (scheduled) and cleared (or electronic) payments.
Reuters By Tim McLaughlin
BOSTON (Reuters) - Fidelity Investments said on Monday it is dropping long-time credit card partners American Express Co and Bank of America Corp , ending a 12-year partnership that has generated billions of dollars in fees.
Boston-based Fidelity, which has 24 million customers, said its new partners will be U.S. Bancorp and Visa Inc , effective Monday. The exclusive alliance will provide Visa branded credit-card products to U.S. consumers, including Fidelity customers.
The switch is another setback for American Express, which already is reeling from its lost deal with warehouse club retailer Costco Wholesale Corp . AmEx said earlier this year the loss of the Costco contract would hurt profit for two years. AmEx shares are off 25 percent over the past year.
Since 2003, Fidelity has offered 2 percent cash back credit cards with American Express and Bank of America's F I A Card Services. During that time Fidelity customers have earned $1.1 billion cash rewards.
The new alliance will feature cards with chip security technology, with access to digital wallets that include Apple Pay, Samsung Pay and Android pay.
http://news.yahoo.com/fidelity-drops-credit-card-partners-american-express-bank-053722977--sector.html
http://www.americanbanker.com/news/bank-technology/how-banks-can-prosper-in-the-age-of-digital-payments-1078390-1.html
http://www.americanbanker.com/news/bank-technology/the-road-to-faster-payments-a-bankers-guide-1073414-1.html
I think, for those interested in trying out some of the new digital payment and money transfer ideas that the banking system is putting into place (and, I suspect, will continue to put in place), there are going to be some bumps and jostlings along the way that will simply have to be endured.
@TSP_Transfer Hey, you left out the most important part:
The new card program will issue the Fidelity Rewards Visa Signature Card and the Fidelity Investments 529 College Rewards Visa Signature Card, where card members can earn unlimited 2 percent cash back with no annual fees, caps or categories when directing rewards into eligible Fidelity accounts.
https://www.fidelity.com/cash-management/visa-signature-card
Their FAQ says that the issuer/creditor is Elan Financial Services (could be a subsidiary of the Reuter's reported US Bankcorp, just as FIA is a subsidiary of BofA - I haven't researched yet).
Fidelity's FAQ also says that existing FIA cardholders can "continue to enjoy the features and benefits associated with that card." So it should bridge the gap until Costco switches over to Visa in April.
On a related note, FIA is in the process of replacing my card, because there was a bogus $10 charge attempted yesterday. Curiously, a friend of mine told me about the same incident on her card a couple of weeks ago, and the places we use our cards have zero intersection. That suggests that FIA and not a vendor, has/had a security problem.
I called and the guy said the same thing and that Fido had released this switchover and the program information prematurely, with an implication of urgency. He suggested I cancel my application.
Wow, what a way to fumble.
https://locators.bankofamerica.com/
Edit/add: One of the very first pieces of financial advice that I can remember was from my parents when I was very young, and I believe it is still totally valid: Don't do business with BofA!
Sent: 01/04/2016 10:27 AM
Account: All Accounts
Fidelity recently launched a new credit card program with Elan Financial Services (Elan) and Visa® as the program's exclusive network. We selected Elan for their experience in financial services, their innovation, and their commitment to customer service. With Visa, members enjoy the strength, recognition, and acceptance of the Visa brand.
Next Step
What does this mean to you? For now, nothing is changing. You may continue to use your card as usual and enjoy all the associated benefits. Just like today, you can contact FIA Card Services using the number on the back of your card for any help with or questions on transactions, statements, rewards redemption, and payments.
Information will be sent to you in mid-2016 regarding your new Fidelity® Visa Signature® card issued by Elan.
For more information, please visit our FAQs.
Does @Ted get paid to keep this board humming? Seems like a lot of work on his part.
You'll have do do some pretty hard pushing to better some of the more outrageous things that I've done over the years. With respect to Ted, no pay... and he's probably the most senior of the contributors to MFO and it's forerunner FundAlarm. He goes way back.
@Ted FYI: In the Linkster's opinion the Closing Bell, made available daily to MFO Members , is most complete daily market summary found anywhere on the web !
Regards,
Ted,you've mellowed a bit from your "wood shed" days,but quantity does not always equal quality.
Please take this test and report the results .
Quiz: Are You A Narcissist?
Check the answer in each pair that comes closest to describing you. Don’t leave any pairs blank; try to complete the survey in just a few minutes. The highest possible score is 40, the lowest is 0.
Over/under for Ted 36 1/2
http://time.com/3136687/narcissist-quiz/
(Nice shot, btw)
Since "U. S." (am I the only one to see the irony?) Bank apparently will be the new provider, and since Elan Financial Services has some very vocal unhappy former customers on the review site, this may only be a move from the frying pan to another frying pan (but probably a cheaper one).
Another: I recently had my wallet stolen while out of state. I had NO ID, no way to get an ID, no nothing. For a few days, I had no way to prove who I was. And yet, after I sat down and chatted with a BoA branch manager for about 40 minutes, answering questions related to my account, some of which I got right, some of which I got wrong, she eventually agreed I had to be me and gave me a new bank card. Of course, it helped that I had my insanely cute dog Lily on my lap the entire time, and that I looked super-duper stressed out, but still, for at least once in its life, BoA acted like a friendly small-town bank. The manager could have just said no way and turned on her heels, and I would have understood; instead, she took the time to help a troubled traveler out. How can I not like her and BoA for that?
P.S. Do you know how difficult it is to get a new RI driver's license when you lose yours in another state? Altogether, it'll take me well over a month to get a replacement. So, I'll be driving w/out a license for that time. And, it's a good thing I'm not returning home for another two or three months, 'cause I ain't got no ID to fly with. And no passport. What a mess. And oh yeah the thieves stole my laptop too, on which I had no security features in place. They're been charging up a storm and finding access to credit cards I didn't know I had until the CC co calls me up to report suspicious activity. What a mess.
Your post reminds me that it's been years since I made a list of or photocopied the contents of my wallet, and I'd be in pretty much the same mess as you if the same thing happened here. I'm going to take care of that today. Thanks much for the reminder and warning. Hoping that your end gets sorted out with a minimum of misery.
Thanks- OJ
All of THAT is just horrible. Happened to me last Spring. Scumbags. Greasy, brainless lumps of fecal material do such things to other people. A pox on them all. I feel for you.
i put a master password on the new computer but already this morning i spent a half hour trying to remember what it was. sheesh.