How well do you understand the banking system? Test your knowledge by answering these questions. How do banks get their cash supply? What does it mean for a credit or debit card transaction to be pending or posted? Why do institutions use ChexSystems reports and what can you do if your report is incorrect? For the answers to these questions, read below or learn more by emailing Alex, your banking expert, at: alexexpertbanker@gmail.com
Question: Where do banks get their cash supply? – Katie from Fort Lauderdale, Florida.
Answer: The central bank, otherwise referred as the Federal Reserve (Fed), controls the supply of U.S. dollars. The United States Department of Treasury, specifically the Bureau of Engraving and Printing, is responsible for designing and printing paper money. The U.S. Mint oversees producing coins. The Fed determines how much currency is printed each year and distributes it to 28 cash offices via armor carrier. Those cash offices then distribute the currency and coins to over 8,400 financial institutions in the United States.
Question: What is the difference between pending and posted? – Shawn from Des Moines, Iowa.
Answer: Pending transactions are authorized credits or debits that have been accepted while posted transactions are those that have been completed. It can take several days for a transaction to transition from a pending to posted transaction. Once that happens, the funds have fully cleared the account. Pending transactions affect the available balance while the account balance only changes once a transaction is posted.
Question: How do I clear my ChexSystems report? – Ben from Springfield, Ohio.
Answer: When someone applies for a new account, many financial institutions will use ChexSystems to see if they have a history of misusing a checking or savings account. Based on the ChexSystems report, the financial institution will decide whether or not to open the account. Adverse information on the report can include unpaid negative balances, suspected fraudulent activity, and unpaid fees. If denied for an account, there are a few ways to clear up negative findings. If the information on the report is incorrect, file a dispute with ChexSystems either online, over the phone, by fax, or through the mail. If the report is accurate and money is owed, pay it off through the financial institution or a collection agency. Once the debts are paid off, ask them to update your ChexSystems file. If all else fails, wait for it to be removed after five years.
Written by: Alex Sanchez, Branch Manager
Important: For your specific questions about banking, contact your banking expert, Alex, at: alexexpertbanker@gmail.com
Alex is starting his 17th year in the banking industry. He has worked for such notable banks as Bank of America, US Bank, and Chase. Alex has his bachelor’s degree in Business Economic from the University of California Riverside.