8 Ways to Sidestep the Chase No Cash Deposits Policy

Daryl Paranada

By , Staff Writer
Posted on Thu Sep 4, 2014, Last Updated on Thu Sep 4, 2014

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Ever since Chase ended its policy of allowing people to make cash deposits into accounts other than their own, angry consumers have expressed frustration and anger over the move. The Chase no cash deposits policy has sparked a lot of conversation about why the bank changed its rules and what it means for customers.

8 Ways to Sidestep the Chase No Cash Deposits Policy

“This is a crazy rule for everyday parents like my dad who would deposit money in my account for emergencies.” — Jay Stewart

“Trying to force everyone to use QuickPay or else they won’t receive their funds. That’s kind of like taxing our currency if we let it happen. I will definitely close my Chase Bank accounts. There are way too many other banks begging for our business.” — Perry Green

“This is incredibly stupid on so many levels. Make people get money orders if they want to deposit $10,000 or more. Or let customers have a list of people on their account that are allowed to deposit money once they show an ID. My husband can’t make a deposit into my account unless he is on my account?” — Elissa Kinsey

“My father in another city deposits cash to me all the time. I deposit cash into my mother-in-law’s account all the time. But now we have to get a money order or something and their money orders are $5?! This is bull. I should have the right to deposit cash in anyone’s account that I want to.” — Rebecca Polius

That’s a sampling of some of the comments Chase customers have left since we broke the news that America’s largest bank by assets was changing the way customers could make cash deposits. Since March 3, Chase customers wishing to make a cash deposit into a personal account not only have to provide an ID, but now must also be an authorized signer or owner of the account. There is no change on the deposits of checks.

Chase said it shifted its policy on cash deposits to combat misuse of accounts, including money laundering. Understandably, Chase customers are upset that they can’t deposit their own cash into someone else’s account. What alternatives do frustrated customers have?

“They can deposit personal checks, cashier’s checks and money orders. They can use Chase QuickPay online. They can add an authorized user to their account,” said Suzanne Ryan, a spokeswoman for Chase.

Whether you’re a parent hoping to deposit money into a child’s account, a friend needing to help out a loved one, or a relative looking to send a one-time monetary gift — Chase’s no cash deposits policy might severely impact the way you send money. Here are a few options to help you sidestep the new policy:

1. Tell your loved one to open a Chase account

Telling your loved one to open a Chase account might work if, say, you want to send money to a child and they have no bank account currently or if your loved one is unhappy with their current bank. Of course, critics of Chase’s no cash deposits policy might cry foul at such a suggestion because it’s your money, right? Why should you force a loved one to open a Chase account just to transfer money to them with your hard-earned cash? There’s no good answer to that question. However, if you plan to transfer funds frequently, this might be the easiest way to sidestep Chase’s no cash deposits policy.

2. Add authorized users to your account

One way to sidestep the new rule is to add an authorized user to your account. Adding an authorized user essentially gives the individual access to your financial account. Parents and couples add authorized users to their bank or credit card accounts all the time. Adding an authorized user to your account has pros and cons. The biggest upside to adding an authorized user to your Chase account, of course, is convenience. You won’t have to utilize any time-consuming or costly methods — like getting a money order or cashier’s check — to sidestep depositing money into your loved one’s account.

There are drawbacks, however, to adding an authorized user to your account. The biggest drawback: the primary account holder is legally liable for everything an authorized user does. If you add a relative to your account and he or she goes on a spending spree, you’re out of luck. That bill still has to get paid and as the primary account holder, it’s your ultimate responsibility to ensure that happens.

3. Use a personal check

Another way to sidestep Chase’s new cash deposit policy is to write a check. Of course, some people might say no one writes or carries checks these days. More problematic, though, is the time it takes for a check to clear at a bank. A bank will consider your account history, balances, dollar amount, and the type of check being deposited when determining whether to place a hold on a check. Even if everything looks OK, it might take up to five business days for the check to clear. If someone needs money immediately, writing a check isn’t going to help.

4. Get a cashier’s check

Cashier’s checks are more secure than personal checks because funds are guaranteed by the bank that issues the check. Unless the bank suspects the check is fraudulent, funds from a cashier’s check are usually available to you by the next business day. But because of that guarantee, as you might expect, cashier’s check come at a price. A cashier’s check costs an average of $9.10 at America’s 10 largest banks. Sending someone money via a cashier’s check might be an option if it’s a one-time deposit and you don’t mind paying the fee. Otherwise, it’s not plausible for everyday or regular transactions.

5. Get a money order

Money orders are an acceptable form of payment if you can’t write a personal check or it’s not safe to do so. Why would you choose to use a money order instead of a check? Checking accounts are more convenient, but you might consider using a money order if you want a more secure form of payment than, say, a personal check. You can purchase money orders at the post office, some retail stores, grocers, etc. Of course, the major downside to a money order is that it costs money — fees can range between $0.50 to $10. There is also a maximum amount you can include on a money order, which is $1,000. Plus, you might get tricked into purchasing a fake money order if you’re not careful. And just like with a personal or cashier’s check, the funds won’t be available immediately.

6. Use your loved one’s ATM card

If you need to quickly deposit cash into a loved one’s account, you can use his or her ATM card. Of course, it’s a potentially dangerous situation because you should never share your personal information with anyone. After all, you never know what a loved one can do with, essentially, access to your account and money. But if you really trust your partner or child, it’s a way to get money quickly. It won’t help if you and your loved one live far away, though.

7. Use Chase QuickPay

Some critics of Chase’s new no cash deposits policy have suggested that the bank made the switch in order to get users to sign up for its online service, QuickPay. With Chase QuickPay, you can send money to another person — virtually anyone with an email address, the bank says — or request money from someone else without cash or checks using a smartphone, tablet or computer. There are no fees for users and you don’t need a Chase account to use the online service, but the big downside is that at least one person involved in the transfer must have an account at the bank. While using QuickPay is instant, the actual transfer of funds isn’t always quick. The deposit still must be cleared before going through.

If you want to avoid going to a bank or ATM and your recipient doesn’t need the funds right away, QuickPay might be a good option for you. If you’re hoping to send money off to someone quickly, though, QuickPay might not live up to its name.

8. Use another peer-to-peer service

PayPal is the most popular person-to-person online payment service, but funds aren’t always immediately available. If the sender already has the funds in his or her PayPal account, the money is available for the recipient immediately. But if the money has been sent via eCheque — which might happen if you don’t have a card and bank linked to your account — it will take 3-5 business days for the funds to show up. If you send money to someone through PayPal, but have no balance left in your account, you can send money via your checking account. However, the transaction might take a few days. It depends on the bank and whether both accounts linked to PayPal have been verified. Plus, depending on how you transfer money, you might get hit with a fee.

PayPal isn’t the only person-to-person online payment service. Other alternatives include Google Wallet, Amazon Payments, Skrill, and Payoneer. But just like with PayPal, these online payment services have pros and cons including cost and ease of use.

While each of these eight options listed might allow you to sidestep Chase’s no cash deposit policy, if you’re spending too much time or money trying to circumvent the problem, you might consider switching banks.

 

Post a Comment

  • Johnattan

    Im closing my account with Chase….. Who ever made this decicion is a clueless person.

  • Systemisbroken

    Chase isn’t the only one. BMO Harris informed me of their new policy of having to provide my ID when making a deposit into our commercial account. I debated with the teller knowing full well she was just “doing her job”.
    I can’t believe the decision makers even considered the ramifications of their new policy.
    I was told this was for better security against money laundering and terrorist activity. It’s to bad some many people hide behind this excuse when it doesn’t hold water. When I questioned this, I was told it would provide bettewr security to me the account holder. I asked,”How so?” With no answer.
    Here are my beef’s with it;
    1. I am inconvienced in getting my ID out of the wallet, especially when using the drive thru.
    2. I have to share my ID with a stranger. I don’t know the tellers and even if I did, I’m not certain I want to share personal info with them. That’s why we are issued account numbers in the first place. Is it too much to ask for their ID when I have to show mine?
    3. As I debated with the teller she informed me that she would include a form letter that explained the new policy along with my receipt and ID (after I relented). Several blocks later I had to race back to the bank as she forgot to give me back my ID. I suspect it was intentional but either way it just proved my point about being a very unsecure method.
    4. My business account is setup under our corporation. It shouldn’t have any link to me as an individual and especially not an employee/manger I might have make a daily deposit. I certainly won’t be adding them to the account to be able to make a deposit.
    5. WTF? I don’t need an ID to make a night deposit
    6. Its not that they just want to see an ID but they actually input it into their system along with the transaction, thus linking forever and associating another person to the business account making it even more easily “tampered” with.
    7. Hackers have the upper hand and bank systems are not as secure as they would have us believe.

    I think this is all just a way for the banks to say to the regulators, “See, we really care about the problem of money laundering,” to avoid further penalties and fines for the corruption and association with Madolf and some of the drug cartels they have been involved with in the past and to keep them from investigating further.

  • Erik Fritz

    What about wire transfers as an additional option? I know you get hit with fairly hefty fees both coming and going (approximately $10-35 on each side of the transfer, depending on your bank), but it’s worked for me in the past when I’ve needed money available immediately.