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The article offers information about the sample authorization for direct deposit and split deposit via Automated Clearing House (ACH) network.

We study customers' adoption and subsequent switching decisions with regard to a menu of three-part tariff plans offered by a commercial bank. Using a rich panel data set covering 70,510 fee-based checking accounts over 30 months, before and after the introduction of the plans, we find that most customers adopt noncost- minimizing plans, preferring plans with large monthly allowances and high fixed payments. Furthermore, after adoption, customers who exceed their allowances and consequently pay overage fees are more likely to switch to plans with larger allowances than customers who do not experience such fees. Notably, after switching, these overage-paying customers pay higher monthly payments than before. In contrast, switching customers who did not pay overage payments before switching pay less after switching. Our findings, unlike those of previous research on experience-based learning, suggest that the behavior of experienced customers does not converge to the predictions of neoclassical models. We propose that "overage aversion," which is closely related to loss aversion and mental accounting, is the most plausible explanation for our findings. [ABSTRACT FROM AUTHOR]

Many aspects of American society, including its legal system, operate to the disadvantage of minorities. Obvious examples include inequities in our criminal justice system and in school funding. Much has been written on those and other topics. This article focuses on another example, specifically on how a sweeping change to an obscure banking rule regulating the check collection process has negatively affected consumers in general, and minority groups in particular. U.S. check collections require a complex system comprised of a variety of institutions including commercial banks, savings and loans, savings banks, and credit unions, as well as the customers who rely upon them to collect payments from far and near. Traditionally, the check collection process, including the timing rules under U.C.C. Article Four, was inherently cumbersome and slow to honor the payee's right to receive immediate payment of funds from the paying bank. Frustration among payees, which grew due to not having their funds available fast enough because of delays that were inherent within the system, led lawmakers and others to reform the check collection timing rules.. It has now been more than twenty years since Congress passed the Expedited Funds Availability Act (EFAA), which empowered the Federal Reserve Board of Governors to regulate the speed with which commercial banks are required to make funds available to depositors after their checks were deposited for collection. There is evidence, however, that these reforms have had an negative impact on checking account customers as a whole, but in particular, a disproportionate impact on minority communities. Specifically, by reducing the maximum amount of waiting time between the date of deposit and the date when funds are available to deposit customers, the reforms also reduced the time that the funds were available to the check-issuing consumer. Thus, in every checking transaction, checking account customers lost the benefit of the float that was built into every transaction under the traditional U.C.C. rules. It is my thesis, therefore, that recent reforms in the timing rules that regulate the speed of the check collection process have indeed reduced the wait time for funds to be available, but have also resulted in increases in the appetite for various risky cash management alternatives by consumers to obtain the money that under old timing rules would stay in their deposit accounts for a longer period. Put another way, consumers who issued checks liked float, too! To address this problem, I will propose two recommendations that can provide a remedy for consumers, at their option. First, that the definition of "check" should be changed under both state and federal commercial law to remove the limitation that all checks are due on demand. Second, I propose that the federal check collection timing rules should be amended to require banks to honor checks that are payable on a definite due date just as they honor those that are payable on demand. [ABSTRACT FROM AUTHOR]

The article focuses on mobile banking and the use of alternative financial services for 'underbanked' individuals, which are people without savings or checking accounts at a banking institution. Topics include the fees placed on the underbanked, access to financial services by low-income populations, and consumer preference.

Purpose – This study aims to investigate which variables can predict clients closing their checking accounts in a commercial bank and to validate the model used in this research. Design/methodology/approach – The theoretical basis of the study has contemplated satisfaction, loyalty, change mediators, switching costs and client retention. A total of 2,000 account holders plus 2,000 clients who closed their checking accounts were selected by simple probabilistic sample. The samples were probabilistic, without repetition, with an error margin of approximately 2.2 percent and trust interval of 95 percent with random drafting of the account holders' database from a large institution based in all Brazil. The variables were tested using the Binary Logistic Regression and the variables between the account holder and former account holder groups with indication of checking account closing request were compared. Findings – Account holder's age, time of the account, investor/taker profile, internal relationship, long term assets contracts, risks in other banks, quantity of products, product canceling, average amount of entries and the existence of a joint client are the variables which better identify clients' propensity to end their relationship. Practical implications – The obtained results make it possible to identify the clients' propensity to abandonment and contribute to directing future marketing actions. Originality/value – The model is relevant on the theoretical point of view because it can measure the importance of each independent variable and provides elements to compare all of them in the same base (meta-analysis). It deals with 14 independent variables and had a good adjustment once was capable to classify correctly 89.8 percent of the account holders and 87.2 percent of the former account holders. The K-S value was 79 percent with p<0.005 and value of ROC curve was 0.947. Models like this are unknown. [ABSTRACT FROM AUTHOR]

The current accounting practise of endorsed cheque in Turkey not give "true and fair picture" in financial reporting. In this study, was questioned the reporting of endorsed cheque in the context of incurring a liability events. The endorsement lead the company to legal obligation in future. Because of this qualification of a endorsed cheque should be subject a provision practise in accounting. The endorsement have three functions: 1)guaranty function, 2) recognation function and 3) ceding function. Because of the quaranty functions an endorsed cheque will incur a liability in the future. So endorsed cheque should be include the context of "incuuring a liability events". [ABSTRACT FROM AUTHOR]

Overdraft fees are charged when financial institutions cover a customer's transaction when their checking account lacks sufficient funds. Despite being defined as an extension of credit, overdraft fees are not covered by Truth in Lending protections. We hypothesize that this loophole emboldened financial institutions to create increasingly aggressive fee-based overdraft programs that rapidly evolved into a key driver of total fee income.We estimate the total cost to consumers of overdraft fees, and find that almost half of this income is generated by debit card transactions in which customers pay a fee averaging $2 for every $1 in credit extended. [ABSTRACT FROM AUTHOR]

This paper presents an automatic extraction of handwritten components. In the first hand we present two more used methods in the literature. The first method is based on the MM. The second method is based on HT. In the second hand we propose a hybrid method based on the combination between the HT and the MM. These methods are evaluated on CENPARMI-Arabic Checks Database, in order to extract the handwritten components existing in the check (numerical amount, literal amount and date zone). We present a concept for automatic evaluation of the results, based on a label tools for the different part of the used documents. We achieve a correct extraction rate of 96.5% for the proposed method. [ABSTRACT FROM AUTHOR]

The article discusses What amount people pay to use their bank and credit card accounts and which cost components are the largest. The costs that people could avoid paying if they made different daily choices are explored. The stability of the level and share of costs that are avoidable for a person over time is considered. Administrative data that contained every checking and credit card account transaction made by 917 consumers over two years were used. It was found that a median household pays $500 per year to use their checking and credit card accounts. Users could avoid half of this amount with behavior changes.

Karshenas and Stoneman (RAND J Econ 24(4):503–528, 1993) gathered four theories of technology adoption: the rank, stock, order and epidemic effects. Tests of these four effects reveal support for rank and epidemic but not the stock or order effects. Since then numerous other studies have tried to find evidence in support of the stock and order effects. But evidence has been elusive, until now. Further, a survey by Frame and White (J Econ Lit 42:116–144, 2004) concludes that much more work is needed into financial innovation. This paper accomplishes three goals: (1) evidence is found to support certain technology adoption theories (the order effects and possibly the stock effects), (2) since the technology under consideration is a financial innovation called bounce protection, the paper answers Frame and White’s call for papers, and (3) refinements are made to the Karshenas and Stoneman methodology and found to be superior to the original empirical model. [ABSTRACT FROM AUTHOR]

In this paper, based on a belief-propagation decoding strategy, a class of generalized parity-check codes called complex rotary codes is investigated. It is shown that, by using iterative sum-product decoding, the complex rotary codes have a much lower decoding complexity than Turbo codes, but have almost the same performance for the high code rate and short frame case (frame length< 500 bits). It is also shown that the prime block size of complex rotary codes is essential to achieve better performance because of its uniform checking characteristic. [ABSTRACT FROM AUTHOR]

The article discusses the survey conducted by the Federal Reserve on the way consumers and businesses make payments in the U.S. The data showed that in 2003 the number of electronic payments in the country exceeded the number of check payments. It also indicate that by 2006 the number of electronic payments was more than twice the number of check payments, or about two-thirds of all noncash payments. The use of checks has been declining because they are being replaced by electronic instruments.

Purpose - The purpose of this paper is to show that having a bank account is an important precursor to participating in the US financial mainstream. However, about 24 percent of Hispanic households in the USA are unbanked. This study seeks to examine whether the use of banks among Hispanic consumers can be explained by acculturation and microcultural factors. Design/methodology/approach - The model proposes that having a checking or savings account is a function of acculturation, microculture, and demographics. Acculturation is measured in terms of length of time in the USA; plans to remain in the USA temporarily versus permanently; Spanish language use; and citizenship status. Microculture is measured by country of origin. Data used for this analysis were collected in a survey sponsored by a start-up financial institution interested in targeting the Hispanic market. These data were collected in 2004 during telephone interviews with 1,000 Hispanic renters in major markets across the USA. Findings - More acculturated Hispanic consumers are more likely to have a bank account, regardless of income, and level of education. In addition, the propensity to have a bank account varies by country of origin. Practical implications - Marketers and policymakers should target less acculturated immigrants who view themselves as temporary US residents, and those who use Spanish primarily for communicating outside the home. Marketers should emphasize the safety and soundness of the US banking system and should accommodate needs for international funds transfers. Originality/value - The findings can help financial service providers and public policy makers to target a growing market segment. [ABSTRACT FROM AUTHOR]

The author provides tips for lawyers in guiding their clients through an accurate and defensible net worth statement, which is said to be the operative document in a divorce. The first step suggested by the author is to determine the time period most reflective of the marital standard. Among the important documents needed are credit card year-end summary statements, checking account statements with copies of scanned checks and tax returns. Also cited is an easy way to initially get a sense of marital or one party's spending.

The article discusses the financial condition of the Melville Society in 2007. The Melville Society Cultural Project (MSCP) moved its funds from a checking account to a mutual fund, where they money made greater gains than it would have made from bank interest. Membership renewals in the fall of 2007 came in quickly.

Payday lending attracts attention for its high interest rates, but bounce protection loans are much more expensive. Bounce protection is a program where consumers overdraft—write checks in excess of the checking account balance—and the bank pays the check allowing the account balance to be negative. For this service/loan, banks charge the standard non-sufficient funds (NSF) fee. When the amount borrowed is low and the time outstanding is short, the effective interest rate paid on this loan can be quite high. Using a unique data set we were able to quantify how high the interest rate is. We found that the median implicit interest paid by consumers is over 4,000%. [ABSTRACT FROM AUTHOR]

The article proposes simple-sum monetary aggregates to account for funds in sweep programs. An emphasis on the effects of commercial demand deposit sweep programs on measuring money is presented. The monetary aggregates include variables such as the sum of currency and coin held by the public, travelers checks and money market accounts. A correlation between commercial demand deposit sweep programs and underreporting of transaction deposits is considered.

Using the Surveys of Consumer Finance from 1989 to 2001, this study explores households' reasons for not having a checking account. Reasons have changed over time, shifting away from account features and toward human capital and institutional reasons. We also find that reasons for not having an account are related to income, race/ethnicity, marital status/gender, planning horizon, education, previous account experience, and credit history. We suggest potential responses for community educators, firms, and policy makers. [ABSTRACT FROM AUTHOR]