Stop using checks is a big step

The number one thing you can do to prevent someone from stealing your money FROM THE BANK, is to stop writing checks. At least in the traditional way! A personal check contains all the information needed for an experienced thief to clean you out, and when I say experienced I am not talking about a professional. If you write standard checks from a check book then chances are 6-7 people will hold that check and likely 8-10 people will be able to read that check and get the information they need.

So what is the solution?

Almost every bank offers a FREE online “Bill payment” option. Something where you log into your online account and fill out a screen that looks like a check. Fill out the name / address of the recipient and amount of money then hit send. The bank will make a temporary checking account for that check only, and mail it for you for FREE. Now the price of stamps is currently $0.39, and that is reason enough for me to use the banks system; forget buying the checkbook and other costs. There are many other reasons to use the system the bank is offering and some of them are very important.

Besides the free postage, you should use the bill payment system because it is the only way to effectively void a check these days. In 2005 a law was passed that said checks don’t expire. So if you actually wrote out a check (from a check book), that check could be held for years and then cashed. Also checks don’t void the way you might think they do anymore. When you call your bank to void a check they put a stop payment on it for 13 months, but after 13 months the check is good again, and you have to pay another stop payment fee to your bank (usually $20) for another 13 months. However if you use the banks bill payment system, then after 6 months the temporary account (set up for your bill payment check) closes, and the check can not be cashed because there is not an account to draw upon.

Change the way you cash checks
Another thing lots of people do is cash checks, and now you might be asking “How can I be in danger if I am the one cashing the check?” The answer is in what you write on the check. Most people write all their information on a check when you only need three things. First Name, Last Name, and the last 4 digits of your account number. Including the words “Deposit Only” is a good habit to get into, but not necessary. Please stop giving the bad guys your Name, Address, Phone Number, and full Account Number, if I have these I have almost everything I could ever need.

So what do I do if I want to buy something right now and they wont wait for me to mail them a check from the bank?

Carry Cash
My girlfriend will tell you I am a hypocrite, but carry cash is the first answer. Besides in this day and age, you are likely to loose more money if they get bank checks from you then if they stole green money by mugging you.

Carry a credit card or bank card
The second answer is credit card or bankcard with a credit card logo. In most cases if your credit card is stolen you are only liable for $50 as long as you report the card stolen in a timely fashion.

What about cash only situations I could not plan for?
If it costs more cash than you carry, and they don’t take a major credit cards then my question to you is: Where are you shopping? Or why didn’t you prepare yourself? If you’re traveling then get travelers checks. If you’re at the cash only restaurant in town, why did you not check to see if you have enough cash for that? If you went to the local garage sale and found something very expensive they usually will let you put $20 to hold the item until you can come back with more cash. I have never had this problem myself and I don’t have any good situations where this could really be an unforeseeable situation that is hard to prepare for (except for maybe bail money; but I will call bail money “not my problem, you unfortunate dumb ass”).

When I use the online bill payment system the bank requires an account number, what’s this about?

The account number they require can be anything; it does not have to be a real number. I usually use my name as the account number, or if I am paying my utilities I get my bill and use that account number so the accounting staff at the utility company pays my bill instead of another David.

Real Account Numbers
In a few rare cases I have a real bank account number and then I use that real number because it is faster to have the bank do a direct deposit rather than mail. However you must be aware of the danger of using real bank account numbers. Don’t ever give out your bank account number unless you are prepared to have someone else empty it. I keep a checking account that I have titled Deposit Account. Anyone who wants to give me money can use this account number. As soon as I notice there is money in my deposit account I send it to another account. So my risk is usually only the $10 I keep in the deposit account to keep the bank from closing it due to insufficient funds.

If you have any questions please ask your back about bill pay. I have disabled comments because I am tired of mentoring spammers who want to fill my comments section with ads for their product.