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Comment by wolco | Hacker News Reader

Change the way checks are issued/redeemed. Right now the customer is on the hook for 7 years because a check isn't cleared until it goes back to the bank that issued the check . The customer thinks by seeing the money in the account the check was good and can clear a sale. The reality is the bank can take that money back if it is later determined to be false/fake.

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> customer is on the hook for 7 years

7 years? Are you sure it's not something like 7 days?

It takes 7 years for a bankruptcy to clear your credit record in the USA.

Not just bankruptcy. Banks and businesses contract with check verification companies such as ChexSystems. I had a friend who bounced a check and it took him a few weeks to reimburse the bank. By then the bank closed his account and reported him to Chex, who put a 5 year hold on his ability to get another checking account through any bank that used Chex verification (> 90%), essentially blackballed.

Ten, I think. Ten years. Or should I dispute that with the credit-reporting agencies?

Negative credit information falls off after 7 years from date of first delinquency.

Always dispute negative credit items; more likely than not, it won't be verified and is usually removed. Otherwise, wait 7 years and then dispute again.

That may be so, but the GP was talking about the time it takes checks to clear. IIRC, uncashed checks aren't even valid after 180 days, let alone 7 years.

Paper checks are going away. Some of the online banks don't even support them. ACH allows only 60 days to claw back the money(disputes) and with same day clearing requirement we can get rid of 2 day holds.

What are they being replaced with? Yeah, as a young renter I went years without using a check. When buying a home last year I had various inspectors during the process. After buying, I've had electricians, plumbers, contractors, locksmiths, and other consultants. I think one gave me a bill and accepted credit card. The rest preferred checks (to be fair, I didn't seek other forms).

I've tried all sorts of p2p methods over the years. All of the banks are too confusing, obscure, or too limited (i.e. only within their bank). Paypal and credit cards charge a not-insignificant fee. Venmo or Square Cash work fine if your group of friends accept them--but more than half the time, they don't for me.

I often do ACH transfers between my own accounts, but the first time I set it up a cringe a little bit and cross my fingers. It sucks waiting the 2 or 3 days waiting to see something. I can't see small businesses accepting ACH as payment because they want something in hand. If we had the setup I've heard about in Britain or Europe, I can see checks going away, but with as much churn as I've seen in this space in the 20 years since Paypal, nothing seems to stick.

For some, it might be walmart. Previously, on hn https://news.ycombinator.com/item?id=8361329

> I've had electricians, plumbers, contractors, locksmiths, and other consultants. I think one gave me a bill and accepted credit card. The rest preferred checks

Try cash? I use cash for almost all transactions like that and have never been turned down :-)

Cash is nice, but the the main point of banks is that I don't have to carry a bunch around. I honestly didn't even use an ATM or carry cash for years. I started carrying cash only when my job reimbursed me for parking (and they only accepted cash). It's also nice for bookkeeping. I can write the account number or purpose on the check itself.

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