Problems with international money orders?

[HouseofComics.Com]

Yesterday I tried to deposit a $100 money order in US dollars from a Canadian customer and was told that my bank has a new policy with any checks or MOs from non-U.S. banks. All such items now pay a large "collections" fee which the branch manager told me was both to cover the costs of clearing them and also the risk of getting so many forgeries. Has this happened to anyone else? Will other major banks be doing this soon or are they already?

 

The manager offered to waive the fee on this particular MO and call me Monday with a definitive answer as to whether I'd face these fees in the future with international money orders. But the fee in question was $45 for a $100 MO. !!!! The woman next to me had the same problem with a supposed $25 fee for a $88 check cut to her by a Canadian university.

 

Later in the day a clerk in rural Marin county told me they'd gotten their first counterfeit $10 bill and the bank in Point Reyes actually found some counterfeit $1 bills!

[sckao]

 

Which bank?

[DrWatson]

I have always had problems with international money orders. I don't even fool with them anymore... too many headaches.

[HouseofComics.Com]

It's Bank of the West

 

 

I had an international money order a few years back that I made the rounds with and no bank could give me any guarantee of how long it would take to "clear" before I could safely ship the books.

 

Anyway, I rarely get these and when I get one (often with a painstakingly hand-written letter, just like I used to get in the 80s from CBG ads) I find it very charming and am happy to accommodate. But the fee situation is likely going to make it untenable in the future.

[sckao]

So they consider it a "foreign item deposited" for which they normally charge $50? Interesting. At least they waived it...

 

 

https://www.bankofthewest.com/static_files/botw2/home/personal-banking/checking-accounts/disclosure-california.pdf

 

 

[thirdgreenham]

I've heard horror stories from some of my US customers and their troubles with money orders in USD originating from Canada. I don't see the issue, but they seem to flag them and want to charge their customers big fees.

 

You could suggest to Canadian customers to buy Postal Money Orders in USD. Those will be cashable at your USPS post office. Or bank ().

 

Andy

[HouseofComics.Com]

So they consider it a "foreign item deposited" for which they normally charge $50? Interesting. At least they waived it...

 

 

https://www.bankofthewest.com/static_files/botw2/home/personal-banking/checking-accounts/disclosure-california.pdf

 

 

Well, they had quite a discussion about it and were trying to read the new regulations they are supposed to follow (while I waited), they tried calling the clearing office, etc. So because it's in US funds there might be some chance to escape the foreign item deposited. We'll see.

 

I'll have to check out Andy's tip.

[rjpb]

I had a problem like this a few years back with a Hong Kong MO - ran me about $35 in fees. If you take a foriegn MO, make sure it is from a bank that has a reciprocal agreement with large American ones. As far as Canadian ones go, I've never had ones with the Postal ones.

[skypinkblu]

Yesterday I tried to deposit a $100 money order in US dollars from a Canadian customer and was told that my bank has a new policy with any checks or MOs from non-U.S. banks. All such items now pay a large "collections" fee which the branch manager told me was both to cover the costs of clearing them and also the risk of getting so many forgeries. Has this happened to anyone else? Will other major banks be doing this soon or are they already?

 

The manager offered to waive the fee on this particular MO and call me Monday with a definitive answer as to whether I'd face these fees in the future with international money orders. But the fee in question was $45 for a $100 MO. !!!! The woman next to me had the same problem with a supposed $25 fee for a $88 check cut to her by a Canadian university.

 

Later in the day a clerk in rural Marin county told me they'd gotten their first counterfeit $10 bill and the bank in Point Reyes actually found some counterfeit $1 bills!

 

Is this a local bank, or one that belongs to an international network...like Citibank? I found the local banks were totally confused, but the bigger ones were OK. If you have a branch of TD North near you, they are based in Canada. They've taken over Commerce, so there are quite a few branches around here...not sure about anywhere else?

 

BTW, my PO will not take International MO's.

[Subliminal]

What a joke since no banks have failed in Canada during this "Financial Crisis" while hundreds of US banks have.

Every time I've been to a bank in the US I feel like I'm walking into a casino where the house wins not the customer.

 

 

[A-DONIS]

I don't accept anything international other than items I buy.

[Flaming_Telepath]

It's the same in the UK.

 

Charges are usually around £25 ($40) to deposit an international M.O. and they won't clear it for up to 28 days.

[boatfund]

CCB/Suntrust wanted to charge me $35 to deposit a $15 check that was in US dollars but drawn on a Canadian bank. The teller told me as I tried to deposit it. So I would come out $20 less if I deposit a $15 check.

 

I also had a western union agent try to charge me for cashing a western union money order that was from Australia (if I remember right) and that was in US dollars also. I thought you could walk into any western union office and cash one of theirs for free but I didn't get anywhere pointing out that it was one of "your" money orders. The bank took that one without a fee for some reason.

 

Since then if I got a payment in the mail, it had to be an international postal money order.

[GACollectibles]

I stopped accepting International Money Orders a couple of years ago when my bank started charging per proceesing, though no way near the $45 on a $100 MO. That REALLY sucks. I also specify I only accept checks drawn on US banks, I haven't been charged for international addressed customers with US based bank checks(yet).

[joe_collector]

Usually Canadian banks have a US partner/subsidiary that the funds are actually drawn on, like when I buy a US MO at TD Bank, I think it's actually drawn on Chase Manhattan, so those kind shouldn't be charged.

[HouseofComics.Com]

Good info everyone, thanks. Since it sounds like this fee has been around a lot of other banks for years, I don't see too many options for me to keep accepting these. I will see if the postal avenue works, but it sounds like that will only work if I can cash at my own PO, not my bank.

[dekeuk]

Usually Canadian banks have a US partner/subsidiary that the funds are actually drawn on, like when I buy a US MO at TD Bank, I think it's actually drawn on Chase Manhattan, so those kind shouldn't be charged.

 

This is correct info.

 

If you get a US funds money order or draft in Canada make sure there is a US bank's name also somewhere on it. That means it clears inside the USA, and there will not be a problem cashing it.

 

 

 

 

 

 

[HouseofComics.Com]

Okay, got the answer from the branch manager. It was a Canadian postal money order in US dollars and yes, it's going to be treated as a foreign item and in the future I'd be charged $45 each to deposit.

[Forbush-Man]

Every time I've been to a bank in the US I feel like I'm walking into a casino where the house wins not the customer.

 

 

Funny, I feel that way about the stock market these days. Won't buy anymore stocks until they are more tightly regulated.

[thirdgreenham]

Okay, got the answer from the branch manager. It was a Canadian postal money order in US dollars and yes, it's going to be treated as a foreign item and in the future I'd be charged $45 each to deposit.

 

As I said, anytime you get those "postal" money orders, take them to the post office to cash them. There is not supposed to be any charge there.

 

Andy