Post deleted by Michele Petry

Post deleted by Michele Petry

OK folks.

Let's remember this forum is designed to answer non-bankers' questions and not as a place for us to attack the questioners. I hate to spoil your sport here, but let's not take pot-shots at folks here even if we don't agree with their points of view. It's OK to disagree, but let's not get nasty.

A lot of non-bankers don't understand how banking works. We'd prefer that this be a place where they can get answers, not acrimony.

Do you agree with these statements from the following article:

- Once you give permission to a merchant to withdraw money from your checking account, you can NOT stop it unless the merchant agrees.
YES!
- you can NEVER stop the withdrawal authorization altogether...
YES!

The only way to do it is to close ALL of your accounts with the bank involved. That’s because bankers will go into any of your accounts to make the withdrawals if the “authorized” account is short.
NO!

- You may think you are giving permission to a merchant for only "monthly payments" for a "specific amount" but you're not. ... once you give authority, you give blanket authority for any and all withdrawals.
YES!

OK, now let me ask you a question! Why are you asking for this information?
Patrick.

Happygilmore
To a degree that system is already in place,

How? I don't see any system in place to stop unauthorized items being paid.
My idea about a Pin/Code on the customer signature card was just that, an idea.
The other idea about the merchant giving the bank a copy of the agreement so the bank knows it's authorized is a better one!
I have the best idea, to protect me, I use none of the banks services unless it's absolutely necessary for my benefit!
Patrick.

Let me thank everybody for very productive discussion. I have learned many new things about banks reading replies to my post.

Quote:

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OK, now let me ask you a question! Why are you asking for this information?
Patrick.

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I am not a banker. I do not know all details how banks work. I asked these questions because I was concerned about safety of my banking accounts and some of the statements in Mr. Martino's article made my worry even more. This discussion and, particularly, citations of Reg. E by Dan Persfull helped me to address some of my concerns.

Thanks again for sharing your thoughts!

Mark

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How? I don't see any system in place to stop unauthorized items being paid

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Reg E and Reg CC both have provisions in place for a consumer to dispute any unauthorized transactions. It takes a simple phone call to your bank...and you must also view your statement in a timely fashion. There is no cost effective way for a bank to verify each and every transaction coming in for authenticity. I'm sorry you feel that this is the banks job, but it is not. There are systems in palce that the banks must follow, just as consumers should.