English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

I live abroad and work with US firms paying me in private checks drawn from US banks. A few days after depositing each check, my bank pays me for it. However, I was told by my bank that a check can actually clear in the US bank from a few days after being sent to the US bank, to up to 5 years from issue(!!!), this means that a check can bounce even a few years after issue, in which case the sum i was paid would be taken out of my account, plus %interest. Can it be that international banking is so inefficient that my bank doesn't get acknowledged that the check was cleared, and the check can "stay in limbo" for years? Should i really worry for years, or a few months after depositing - i should be safe?
(To all those who answered my prev Q: Thanks! Your answers helped me ask my bank the right questions, and limit the unknown to this question only.)

2006-10-27 11:55:46 · 2 answers · asked by not_a_wolfus 2 in Business & Finance Small Business

2 answers

Foreign checks are not cleared until you bank receives the fund. Now they may advance you money but if the check bounces, they will take it back out of your account. The problem is that foreign banks are not under the US banking system. Nor are they under US laws. However, once the US bank receives the funds from the foreign bank, that is the end of it. They have to credit your account. Anyway, the best thing is have your employer do a direct deposit into your account in the US or you can deposit your checks where ever you are and wire transfer the money back to the US bank. If you can find an international bank like HSBC that have branches in the US as well as where you are working, that may make things a little simpler.

2006-10-27 14:06:50 · answer #1 · answered by Anonymous · 0 0

Ask a different bank emplyee or the manager. That doesn't sound right.

2006-10-27 12:08:58 · answer #2 · answered by normy in garden city 6 · 0 0

fedest.com, questions and answers