Check gets deposited in ABC bank (issued by XYZ bank). ABC bank sends a scan of the check to XYZ bank. And XYZ bank has an employee whose job it is to look at every inbound check to make sure the signature matches? Or maybe they have computers to recognize the signature and compare them for similarities. If it's too different, then it's flagged and sent to an employee for further review?
I suppose it's possible that this happens. I honestly have no idea. Next time you write a check, sign it "Snoopy" and see if it still clears. My guess is that it would.
> Or maybe they have computers to recognize the signature and compare them for similarities. If it's too different, then it's flagged and sent to an employee for further review?
Yeah, that'd be nice, and I think it's well within the grasp of the big banks to deploy some image recognition software to do this, and yet I'm fairly certain they do not. Anecdata to follow...
I recently had a blank check stolen from me and filled out with a completely fake looking signature, it was really almost cartoonish. Yet the bank (Chase) did nothing to stop this from being deposited by the thief, and debiting my account. I only found out a month or so later, and filed a dispute, which they resolved. But the only reason I noticed it was that I don't use checks very often, so even though the amount was not an outrageous sum, it stood out. The bank's suggestion to me, for the future, was to NOT USE CHECKS. Ever. The low level employees at the local branch, when I was there closing the account and opening a new one, told me NOT to order checks at all, and pay rent with a direct transfer or bill-pay feature.
This is what people mean when they say the only innovation in consumer level banking is improvements to ATMs.
The thing with doing that it it requires the person signing the check to have a /single/ extremely consistent signature. Personally my signature changes a lot depending on the pen I'm using or even how quickly I go. And I doubt I'm the only one.
Fair enough I suppose, and I'd add the rest of online banking is a big improvement too.
The fact that checks are not anywhere near as secure as I would want (or apparently the bank's own tellers would want) just irks me, since they're much more convenient than bill-pay, which takes 5 business days to process while handing a check to my landlord takes less than 1.
I used to sign checks as Nickname Lastname, rather than my given name. I eventually had one bounce due to "signature not as drawn". I do have very legible handwriting though.
Check gets deposited in ABC bank (issued by XYZ bank). ABC bank sends a scan of the check to XYZ bank. And XYZ bank has an employee whose job it is to look at every inbound check to make sure the signature matches? Or maybe they have computers to recognize the signature and compare them for similarities. If it's too different, then it's flagged and sent to an employee for further review?
I suppose it's possible that this happens. I honestly have no idea. Next time you write a check, sign it "Snoopy" and see if it still clears. My guess is that it would.