Schwab returning Quicken Check Pay checks

douglasmoore323

I had a check pay check returned by Schwab saying they don't accept 3rd party checks. I have not had this happen until this check last week and have used the Bill Pay service since it began with no issues. Has anyone else had this issue. I talked to Quicken Support and got no where

NotACPA

Have you always been with Schwab … or were you a recent convert from TD?

If the former, you probably need to talk to Schwab. If the latter, I'd consider "voting with my feet".

douglasmoore323

I moved over to Schwab from TD when they merged. I find it strange that no one else has had this issue.

NotACPA

Actually, I'm a bit confused. Is it Schwab that doesn't accept 3rd party checks …. or whoever you were paying? Because the check wouldn't be 3rd party to Schwab.

douglasmoore323

The problem appears to be with Bank of New York Mellan who is the bank for Schwab. For some reason for 9 months the bill pay checks were fine and then they sent the one in question to Schwab who said it was a 3rd party check and would not accept it. I don't appear to have any choice but to stop using the bill pay system and write checks directly. Bizzare!

Rocket J Squirrel

Have you tried phoning Schwab and/or BNY and explaining the situation?

douglasmoore323

Yes, I talked to Schwab and got nowhere. The problem appears also to be with Bank of New York. They were cashing bill pay checks for nine months and then all of a sudden sent this particular check to Schwab who identified it as a third-party check and wouldn’t honor it. I don’t have much choice but to just quit using the bill pay system.

retird

Did Bank of New York say why they sent the check to Schwab as 3rd party check?

douglasmoore323

Nope, they just sent it to Schwab and Schwab refused to pay it.

UKR

May I ask why you're making Check Pay payments when there are faster, easier alternatives available?

Practically all banks and many billers allow you to use Quick Pay thru Quicken to make manual payment at their website. Instead of having to mail a paper check, the biller will make an electronic debit on Due Date and transfer the amount due directly from your checking account.
You can also use their Autopay system to authorize them to make automatic electronic debits on due date every month without you having to this by hand every month.
All you need to do in Quicken is to unlink the bill and just record a scheduled reminder which does not execute as an online payment into your account register on or before the Due Date and before you download transactions from the bank or credit card containing the payment transactions. That will allow Quicken to match your register transaction to the downloaded data and not cause any further issues.

douglasmoore323

Good suggestion but several of he people I pay are small businesses that don't have the ability to do auto debits.

UKR

https://community.quicken.com/discussion/comment/20439765#Comment_20439765

In that case, maybe writing or printing a paper check with Quicken and mailing it yourself might be a better and faster alternative.

OTOH, I'm still confused about the "check returned as third party check" situation.
What was this check meant to pay? A credit card bill? A transfer of cash from your checking account to some other bank or investment account? An invoice from a small business?

Do you have a copy or image of the problem check, front and back to review?
Can you tell me what the front of the check looks like?
Does it have your name and address on the top left?
Does it have your checking account's Routing Number and account number in the MICR code line at the bottom?
Does it have the payee name in the Pay To field and the correct payee address?
What is in the Memo field? The payee account or invoice number? Something else or nothing?
On the back of the check, does it have endorsements from the payee only? Or did the payee really give the check to some third party to cash in?

douglasmoore323

No the check was returned by Schwab after it was sent to them by BNY, their clearance bank. Evidently Schwab thinks checks sent by outside companies using my bank information are too risky.

UKR

Definitely time to complain to Schwab's management, I would say. Returned checks, for whatever the reason, don't do your credit rating any good, AFAIK.

douglasmoore323

Already did and got nowhere. Thanks for the assistance though.

retird

I've always had good luck with Schwab dealing with issues. If I couldn't get relief with the initial contact I would ask to be connected to the next person up the chain. That worked for me…..

Ps56k2

just to clarify- checks written from your Schwab account are actually created by the NY bank - and it goes on from there