Sears's New Process For Checks - Scam?

Joined: 02 Jan 2004 Posts: 261

On 7/1, Sears changed its policy on accepting checks from customers.

In short, Sears no longer accepts checks from customers. When a customer now presents a check for a purchase or payment, they have to sign a full disclosure form allowing Sears to directly access their bank accounts for the purposes of electronically drafting the account for the check amount and any future "adjustments and penalties" in relation to the electronic draft.

After signing the disclosure, the customer gets a printout of the disclosure terms and the check back, since Sears never actually processed the check at all.

To me, this sounds like a scam to assess "penalty" fees (the minimum penalty fees are listed on the disclosure) to check-paying customers and cut out the check clearing house (Sears no longer uses Certegy). The customers in my store are up in arms over this change in procedure.

Can anyone in the know about this type of process share some insight into whether this is a shady, unethical practice?

Joined: 14 Jul 2006 Posts: 633

I am not familiar with the new checking procedure since I don't cashier that often, but it was my understanding was that it was like an electronic check...you know, like Wally World and other such stores now do.

I don't seem the harm, but I don't use checks, so I will admit that I'm ignorant here.

Joined: 11 Apr 2007 Posts: 463 Location: Earth

Joined: 06 Jul 2003 Posts: 8550 Location: Central CA

I have to agree... I never use checks anymore but this doesn't really sound like any kind of scam or anything that will directly put money in Sears' pocket.

The thing that I would worry about based on what I read in the original post... what with all the OTHER attempts they make to obtain your personal information for tracking purposes... is whether or not this is just another avenue to obtain that kind of information.

Some customers... especially those customers who are aware of all the indentity theft and personal data scams out there... are going to question the need to let Sears access their bank account info... given that they're then going to refuse to accept the check anyway.

The question naturally arises, based on the info in the OP an the fact that there is no disclosure until AFTER your account info has been compromised... "If they already know they won't take checks and aren't going to take this one, why do they need to be snooping my account?".

I would probably react much the same as those mentioned in the post... Just tell me up front, "I'm, sorry but we no longer accept checks." and stay the hell out of my private bank account.

Joined: 05 Jul 2008 Posts: 181

It is strange they are having customers sign a disclosure. Books -a- million doesn't take checks the old fashioned way but will process your check like an electronic debit and give it back to you with the transaction and the amount deducted stated on the back of the check. They don't present a disclosure form to the customers, their new policy was printed on their receipts for a while. Half of my utility companies process checks the same way. I don't use many checks in stores anymore but prefer them for electric bill, etc.
They are probably just doing the same thing but signing and agreeing to insufficent funds fees makes me wonder what those fees are compared to other retailers. Most electronic debits come out quickly out of your account but who knows what kind of software they bought for this.

Joined: 06 Jul 2003 Posts: 8550 Location: Central CA

That's a good point and actually demolishes most of my argument above. I'm guilty of misreading the original post and failed to understand that there is an electronic debit and THEN the check is returned. My apologies to all.

I use a debit card for everything, shopping, bills, all of it. I do most of my financial transactions on line and haven't paid for anything but my rent by check in a while now. I just don't understand why anyone would continue to use checks if they know that there will be an immediate electronic debit and they're going to get the check back.

They might as well be using a check or debit card and saving themselves and the store personnel the trouble of dealing with what is apparently now a useless piece of paper.

Joined: 05 Dec 2007 Posts: 546

Walmart does the same thing.. if your write a check they will to the electronic thing then you sign a paper and they will give the check back to you. No more writing checks early to make the due dates on payments your money will be taken out right away. I have three bills that do the electronic check.

So here's my question why can't you just pay your bill with a debt card? It all comes out of the same checking account and to me you will save on paper, which saves a tree and will save the enviroment.

Joined: 08 Jul 2003 Posts: 6606

Another expense eliminated , another way to collect personal information and fees AND last but not least when the customer asks ' well how the heck am I supposed to pay for it ? ' your reply will be "Sears caRD ?...

Joined: 11 Apr 2007 Posts: 463 Location: Earth

Joined: 13 Jan 2009 Posts: 101

Many companies do this now. It's a way to get the money out of the account quicker. No more writing a check a day or 2 before your deposit goes in and hope for the best.

Joined: 01 Feb 2008 Posts: 569

Joined: 03 Jan 2009 Posts: 57

So, this telecheck process now requires a signature right there on the spot. Well there happens to be a case where a little girl 12 year old or something, brings in a sears card payment for her disabled grampa whos waitin in the car. Well my manager walks over to the cashwrap and we ask him is it ok for the little girl to sign? He's like "ya, isn't that for the two chainsaws and riding mower she put on her sears card last week?" i didn't know whether to laugh or cry.

Joined: 01 Apr 2006 Posts: 195

A friend of mine in a store on Long Island told me the store manager told them not to do it. That it was a mistake and checks are still accepted. They were told not to have customers sign anything and not to give checks back. How can they do that?

Is it mandatory and storewide or can each store make it's own policy.?

Joined: 24 Jan 2009 Posts: 62

Joined: 28 Apr 2005 Posts: 2324

It looks like the sort of process lawyers dream up to make sure the company is absolutely protected from losses. I don't think it's a scam, it's just stupid. Why not just take the paper check, do the electronic process, and then dispose of the paper later? The signature on the check could be considered authorization. But I'm thinking like a customer service person, not a lawyer.

Joined: 26 Aug 2008 Posts: 325

It's not a big deal. It's basically what banks do now between one another. The Fed made it legal awhile ago for electronic forms on checks be accepted. Most places that do this don;t even bother with a disclosure, they just do it.

Joined: 28 Apr 2005 Posts: 2324

Joined: 14 Jul 2006 Posts: 633

Joined: 08 Nov 2008 Posts: 18

It only works if the customer's bank allows electronic fund transfer, and the customer can chose not to sign the disclosure and the cashier will process it like a regular check. The register will tell the cashier if they need to keep the check or give it back to the customer.

Also, if someone other than the card holder brings in the check it is ok if they sign the disclosure for credit payments only. Another person can not make a purchuse using your check.

The only pain is it takes at least four trips through the register for the check to be processed instead of just once. I guess it will give us more time to get through the 100 questions we must ask every customer! Evil or Very Mad

Joined: 28 Apr 2005 Posts: 2324

Joined: 08 Jul 2003 Posts: 6606

Wait til a missed payment causes somebody credit trouble because they didn't sign or bother .

It's one thing if you want to buy a saw by check but paying off your credit card ? And that's a double whammy . Are in store payments really a convenience now ?

Alot of people like checks because they feel if something goes wrong they can stop payment but that can get pricey if for a smaller purchase . A big purchase is another story .

Joined: 24 Feb 2005 Posts: 559

You can bypass the check/debit screen just like you can bypass the credit card signature screen. If a customer doesn't want you to instantly debit or doesn't like the verbage that prints out... press total and proceed like a normal check.

Just explain it and if they say NO., process the purchase like before and keep the check., just like it says. No law that says the consumer has to follow the new rules. Just like No laws says I have to talk to a customer service rep in India because the phone sends me there.

I choose to talk to the India rep. (which I don't and never will)., or I ask for a transfer back the the USA. (because I beleive inkeeping our jobs here) or if that can't happen I call again.

We can help the customer do it what ever way they like if you know the POS system.

You can bitch about the new technology all you want. And yes in some instances we have no control. BUT everytime I DO have control, and learn about it because I ASKED. I choose what is best for me.

I'm old. I'm not a fan of centralized technology for my personal info and opt every every time I know about it or can.

We can bitch., or we can make INFORMED choices. That literature you have to read...... read it carefully. And then re-read it so you understand exactly what is being done. Then offer the choice's the customer wants.

Joined: 22 Jul 2008 Posts: 349 Location: HELL

I tried that American thing last week! They say they have no way to do that? Confused

[ 88 sears ]

Joined: 08 Jul 2003 Posts: 6606

bc5yr is right . It's not a law . It's a Sears PROCESS . It might be the preffered process . It might be what they desire or want but it is not what you actually have to do .

The processes should be considered A tool and not the law.Thats' all the processes are: A tool . Although the process that says you better not come out a 1000 short at the end of the day is one you definately want to follow .

How the heck can a minor bringing in a check or anyone else that matter be required to sign squat. Do you think that would hold up in court . And the scarey part is that I know there are those that are going to try it because the SGM/DM/RM are too kiddy cat like about the processes not to follow them or the desires that will make them look good.

Posted: Tue Aug 11, 2009 4:20 am Post subject:

Consumer Reports spin on this.

http://blogs.consumerreports.org/money/2009/08/sears-handwritten-check-cashing-electronic-funds-transfer-trouble-online-bank-transfer-permission-store-debit-card.html

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