Is the following a matter of Federal (U.S.) law, or a matter of the bank’s policy?
I was told by my bank that I could not do a “cash back” deposit on my small business account. I’d have to deposit the full amount (checks payable to my business) and then separately write a check for cash or make an ATM withdrawal.
Seems silly to me as I’m entitled to and able to get the cash anyway. It would be helpful to me to know whether or not this is a standard rule applicable to all banks.
Wait, does your small bank not allow you to make withdrawals from the teller? You have to write a check or use an ATM? Sounds wierd to me, but I don’t have a business account.
It’s a common practice with commercial accounts.
There’s much more fraud on average with commercial accounts. More hands in the pie mean more hands in the till. The banking industry doesn’t want to take the loss if the “cash back” wasn’t authorized.
By making you sign a counter check or use the ATM card they somewhat reduce their risk.
It certainly makes things easier than they would be otherwise for your accountant, I suppose.
I’ve seen that same practice at First Merit, of Akron, Ohio.
I’m 99% certain that it’s a bank policy thing. I read all of the main banking regs (lots of fun, that) about 5 years ago, and that didn’t seem to be in there.
Thanks, that addresses my question, which would more accurately have asked if it was standard practice rather than law. Apparently it is standard or common practice, and not an oddity at my bank.