[driven]

Due to a price increase during a buy I ended up with a small debt of about $35 to my stock broker. (Scottrade)

I went to pay them today and they refused to accept cash. Since I never write checks I asked what my other options were. He said "Wire". A wire-transfer has about $35 in fees. <gasp> I am currently trying to see if I can do an electronic bill pay to them.

When I asked why they didn't accept cash the employee responded with an odd statement "only banks accept cash". WTF ?????

Since all money says on it's face "this note is legal tender for all debts, public and private" I am curious: Is it even legal to refuse cash?

BTW: This is why I only do a small amount of trading with Scottrade. They make it so damn difficult to get money into their system. In addition to the stupid "no cash" rule, they are also only open during times when I'm in the office, no after hours, no weekends. <sigh>

[iLikebeer]

Is it in the terms of service or a contract?
My apartment doesn't accept cash, credit, or debt. It's in the contract. They don't want to deal with those headaches, such as cash registers or credit card machines, so they only accept check or money orders.

It just depends on what you agreed to with them.

[driven]

Nothing says anything about not accepting cash.

I would think you would PREFER cash over a check which offers so many headaches. In fact they run a credit check each time you write them a check. (One of the reasons I don't write checks to anyone.)

[driven]

Actually I found a clause here:
https://www.scottradeadvisor.com/Bro...tAgreement.asp

... that says they will not accept cash (under "settlement").

But ... is such a clause legal? It's not like cash can bounce.

[macintologist]

Just get in the habit of doing money orders from banks.

[iLikebeer]

Originally Posted by macintologist

Just get in the habit of doing money orders from banks.

Actually, I've noticed the US Post Office has much cheaper rates for money orders. There or gas stations, lol.

[aberdeenwriter]

Originally Posted by driven

Actually I found a clause here:
https://www.scottradeadvisor.com/Bro...tAgreement.asp

... that says they will not accept cash (under "settlement").

But ... is such a clause legal? It's not like cash can bounce.

I think it's a crappy policy not to accept cash!

However, I CAN understand that eliminating the attraction to thieves, embezzlers and the security risks might be attractive for them. Not to mention eliminating the extra expenses and problems of having large sums of money on hand to account for, handle, store, transfer and protect.

But still. A crappy policy, IMHO.

[himself]

Originally Posted by aberdeenwriter

I think it's a crappy policy not to accept cash!

However, I CAN understand that eliminating the attraction to thieves, embezzlers and the security risks might be attractive for them. Not to mention eliminating the extra expenses and problems of having large sums of money on hand to account for, handle, store, transfer and protect.

But still. A crappy policy, IMHO.

Yes, the logistics of handling cash can be enormous. It is much easier to transfer and track payments by check, money order, credit or debit. When dealing with cash, the instances where some of the money ends up "missing" often increase exponentially. There would need to be the additional cost of setting up a system to monitor the handling of cash, which would likely lead to an additional "service charge" for those who do business in cash. Yeah, it can be a bitch, but those are the breaks.

[driven]

If a local gas station paying dirt-wages can manage to track cash (along with McDonalds, Domino's delivery dude, my gas company, , my ice cream vendor, etc.) why can't a professional organization like Scottrade?

Are they not able to solve these logistical problems that these other companies can?

[Eriamjh]

Cash can be stolen. with no record. Just get a money order.

[aberdeenwriter]

Originally Posted by driven

If a local gas station paying dirt-wages can manage to track cash (along with McDonalds, Domino's delivery dude, my gas company, , my ice cream vendor, etc.) why can't a professional organization like Scottrade?

Are they not able to solve these logistical problems that these other companies can?

A brokerage would likely have greater amounts of money, one might think, than a local Mickey D's. Also, the average gas station attendant probably isn't going to have the brains/money/nerve/connections to sue the gas station owner if their son/husband or other relative is shot in a hold up. In a robbery of a stock brokerage where hundreds of thousands might be snatched and maybe an employee wounded, you would think the family would sue just because they are probably smarter and have more of what the gas family doesn't.

Probably.

[Dakar]

If it weren't for bars and vending machines, I'd never use cash.

[dcmacdaddy]

Originally Posted by driven

If a local gas station paying dirt-wages can manage to track cash (along with McDonalds, Domino's delivery dude, my gas company, , my ice cream vendor, etc.) why can't a professional organization like Scottrade?

Are they not able to solve these logistical problems that these other companies can?

Here is your reply, from the post above yours.

Originally Posted by himself

Yes, the logistics of handling cash can be enormous. It is much easier to transfer and track payments by check, money order, credit or debit. When dealing with cash, the instances where some of the money ends up "missing" often increase exponentially. There would need to be the additional cost of setting up a system to monitor the handling of cash, which would likely lead to an additional "service charge" for those who do business in cash. Yeah, it can be a bitch, but those are the breaks.

All those accounting and security systems to deal with cash require spending money, which means less profits for the trader--at a given cost/transaction price for the end-user--or requires a raise to the cost/transaction price charged the end-user. Either the company loses profit or they user winds up paying more.

Kinda ironic, isn't it? Conducting certain financial transactions in cash is too expensive. So, the most fluid means of exchange we have can actually be too fluid, too conducive to exchange, for certain businesses.

[aberdeenwriter]

Originally Posted by dcmacdaddy

Here is your reply, from the post above yours.

All those accounting and security systems to deal with cash require spending money, which means less profits for the trader--at a given cost/transaction price for the end-user--or requires a raise to the cost/transaction price charged the end-user. Either the company loses profit or they user winds up paying more.

Kinda ironic, isn't it? Conducting certain financial transactions in cash is too expensive. So, the most fluid means of exchange we have can actually be too fluid, too conducive to exchange, for certain businesses.

Nice post.

[production_coordinator]

Accepting cash can be a liability.

[drmbb2]

According to the US Treasury web site:

"There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy"

oh, and link - http://www.ustreas.gov/education/faq...l-tender.shtml

[Athens]

Originally Posted by driven

Actually I found a clause here:
https://www.scottradeadvisor.com/Bro...tAgreement.asp

... that says they will not accept cash (under "settlement").

But ... is such a clause legal? It's not like cash can bounce.

ya cause its not a purchase really, check offers them a record of payment that cash really cant. I know retail stores have too. But this isnt retail.

[turtle777]

Did you ask if they accept PayPal ?

*duck*

[macroy]

Do they not accept ACH transfers (Scotttrade)?

And as others said.. cash offers no audit trail.

[turtle777]

Originally Posted by macroy

And as others said.. cash offers no audit trail.

That's not true. Of course you can set up policies to sufficiently track and process cash payments. What do you think banks do all day long.

It's not a question of feasability, but of efficiency.

[Cody Dawg]

Won't they take a personal check?

Or a cashier check?

FedEx won't take cash either when you go in to ship or mail something out.

[macroy]

Originally Posted by what_the_heck

That's not true. Of course you can set up policies to sufficiently track and process cash payments. What do you think banks do all day long.

It's not a question of feasability, but of efficiency.

I think you're splitting hairs here... this simply comes down to operating costs. To be efficient, you need a system - which costs money to implement and manage. And that may make it unfeasible from a business standpoint (yes its still technically possible).

Yea - banks do that all day long - but its their business to handle cash. Would you want to be paid in Pennies? Banks takes pennies....

[driven]

Originally Posted by drmbb2

According to the US Treasury web site:

"There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy"

oh, and link - http://www.ustreas.gov/education/faq...l-tender.shtml

Good post! Thanks.

To answer all of these questions:

Q1) Would I want to be paid in pennies?
A1) Sure ... if it meant pennies or nothing at all ... I'll take the pennies with a smile! (Besides .. if it's a large purchase I'll get a workout in the process.) :-)

Q2) Will they take a personal check
A2) Yes, but I never write checks any more. Refuse to use them. They trigger a credit inquiry each time you write them, and it leaves my account number and routing number floating around on a piece of paper that I'd rather not have.

[turtle777]

Originally Posted by macroy

I think you're splitting hairs here....

No, I'm not.

You said:

Originally Posted by macroy

cash offers no audit trail.

My point was to refute that. Cash audit trails are possible, at a high cost.

[Dork.]

Originally Posted by macroy

Do they not accept ACH transfers (Scotttrade)?

And as others said.. cash offers no audit trail.

What he said. I fund (and take money out of, thanks to Apple and AMD ) my Ameritrade account through my checking account using ACH transfers. Once you set that up the first time, all transfers -- in and out -- are free through Ameritrade. If you're paranoid about your checking account number floating around on a piece of paper, you must feel better about your number residing on your broker's secure server!

[wdlove]

Never am able to figure out why a cash payment isn't accepted.

[turtle777]

Originally Posted by wdlove

Never am able to figure out why a cash payment isn't accepted.

Well, reading this thread would help

[Mrjinglesusa]

Originally Posted by wdlove

Never am able to figure out why a cash payment isn't accepted.

Because this is a stockbroker and they typically deal with thousands of dollars at a time. It's way too easy for their employees to "lose" a $2,500 cash payment, especially when you are talking about multiple transactions. It's much easier to and efficient to deal in checks and wire transfers.

Bottom line: the OP needs to not be so paranoid about writing a check. Millions of people do it every day and don't have any problems. Or, find a stockbroker that will accept cash payments.

[driven]

Originally Posted by Dork.

What he said. I fund (and take money out of, thanks to Apple and AMD ) my Ameritrade account through my checking account using ACH transfers. Once you set that up the first time, all transfers -- in and out -- are free through Ameritrade. If you're paranoid about your checking account number floating around on a piece of paper, you must feel better about your number residing on your broker's secure server!

I do feel better about that ...
Too many hands touch it during processing.

But ... it's the credit inquiry that bothers me the most. I'd much rather have electronic fund transfers.

I'm not sure why they can't take a debit card or credit card either.

[Dork.]

Originally Posted by driven

I do feel better about that ...
Too many hands touch it during processing.

But ... it's the credit inquiry that bothers me the most. I'd much rather have electronic fund transfers.

I'm not sure why they can't take a debit card or credit card either.

I've never heard of a credit inquiry being done "each time you write" a check. I pulled my credit file in December, and the only credit inquiries I saw were legitimate, and not related to checks. Then again, I only really use checks to pay certain bills, give gifts, or do things like pay takes and make charitable donations where having access to the cancelled check can be useful. (Not that I get cancelled checks from my bank anymore, they scan them in and store official copies on their servers....)

I suppose if you were making a major payment to an entity you don't have a normal relationship with, they might run a credit check just to see if the check is likely to bounce.

Your broker probably doesn't take credit or debit cards because they don't want to pay the bribe to Visa/MC.

[Rolling Bones]

Cash is easier to skim from.

That's why casino's use chips.

[Person Man]

Originally Posted by driven

I do feel better about that ...
Too many hands touch it during processing.

But ... it's the credit inquiry that bothers me the most. I'd much rather have electronic fund transfers.

I'm not sure why they can't take a debit card or credit card either.

Take your cash to a gas station or other place that sells money orders. Voila. "Instant check" that you can give them. No credit checks, no personal account information to "sit around."

[himself]

Originally Posted by driven

But ... it's the credit inquiry that bothers me the most. I'd much rather have electronic fund transfers.

If this were true, nobody who cared about their credit score would ever write a check. Every time your credit score is pulled, a record of the inquiry sits in your credit history. If you get too many credit inquiries within a certain period of time (not certain on the number or time period), your credit score will automatically drop a number of points. This is because when the credit companies see too much inquiry activity in your account, they assume the worst and hedge their bets.

Besides, you need to give explicit permission before anyone can pull your credit score (at least, that's how it works in the state of Illinois).

[driven]

Originally Posted by himself

If this were true, nobody who cared about their credit score would ever write a check. Every time your credit score is pulled, a record of the inquiry sits in your credit history. If you get too many credit inquiries within a certain period of time (not certain on the number or time period), your credit score will automatically drop a number of points. This is because when the credit companies see too much inquiry activity in your account, they assume the worst and hedge their bets.

Besides, you need to give explicit permission before anyone can pull your credit score (at least, that's how it works in the state of Illinois).

I had a check denied on the spot for a $129 car repair about 4 years ago. 6 years ago I had a rental property go into foreclosure. On the day the check was declined I had $18,500 in the checking account. When I asked why, they told me to call Experian. I've since noticed little notifications in businesses about them running a credit check when you write a check in their business. Not worth the trouble. My credit score is off the chart ... banks give me loans all the time, but I've had two or three instances of checks being denied. (and denials *DO* show up on my report.)

(As embarassing as this is to mention ... the story makes more sense with full disclosure.)

[driven]

Oh yeah ... when I asked about the permission to pull a report they said that writing a check constitutes a business arrangement and that's all it takes to run a credit check. (Perhaps it's just my state?? - Georgia)