Dec
02
2024

Guide to Getting Pay Stubs from Direct Deposit

By | money, Money & Life | Comments Off on Guide to Getting Pay Stubs from Direct Deposit

Before the advent of direct deposit, employees typically received paper checks attached to their pay stubs. These pay stubs contained all the information they needed about their earnings, taxes, and deductions.

But today, more than 95% of U.S. employees get paid via direct deposit, according to the American Payroll Association. That can make accessing a pay stub a bit more involved. Here, you’ll learn how to get pay stubs from direct deposit and alternatives if you’re having trouble tracking yours down.

Key Points

•  Direct deposit is a widely used electronic funds transfer method that deposits payments directly into bank accounts, without traditional paper pay stubs.

•  Pay stubs offer detailed information on earnings, taxes, and deductions, accessible through online portals.

•  Employees can contact HR or payroll departments for pay stubs if not available online.

•  Tax returns and bank statements serve as alternatives to pay stubs for income proof.

•  Over 95% of U.S. employees use direct deposit, complicating pay stub access.

What Is Direct Deposit?

Direct deposit is a type of electronic funds transfer in which businesses and government agencies pay you by electronically transferring money into your bank account.

Direct deposit is an increasingly popular way of receiving money, typically from an employer but also from government entities, like when you receive a tax refund or benefit payment, and from other businesses, such as when you receive an insurance payout.

Setting up direct deposit can be a convenient and secure way to get paid. Plus, it’s faster than receiving and depositing checks, and it cuts down on paper waste.

What Are Pay Stubs?

A pay stub is a physical or digital statement that accompanies your paycheck. Here’s a bit more detail on them:

•  A pay stub includes important information for tracking your earnings, including how much you earned during a pay period, the amount of taxes withheld, and other payroll deductions, like 401(k) contributions and health insurance premiums.

•  Often, your pay stub will include information about the current pay period and year-to-date (YTD) earnings. This gives you a fuller picture of your annual earnings and makes it easier to calculate your monthly income.

•  Pay stubs can include sensitive personal information, like your Social Security number and the name of your employer. It’s important to store paper pay stubs in a safe place and, when you no longer need them, safely destroy them, such as by shredding or burning.

Now that you know how pay stubs function, consider how to get this information when you receive direct deposit.

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2 Ways to Get Pay Stubs From Direct Deposit

When you receive a paper check, your pay stub is attached, but getting your pay stub for a direct deposit payment may require a step or two.

You typically have two options to get your pay stub:

1. Self-Service Portal

Approximately 87% of employees in the U.S. have access to pay stubs via a self-service portal offered by their employer, according to PayrollOrg (PAYO).

Your employer may have sent you instructions for navigating this employer portal when you first started your job, but if you forget how, a quick email or call to HR should get you on the right track.

2. Contacting HR or Payroll

If your employer does not use a self-service portal or you aren’t sure how to access it, you can speak with your manager, human resources department, or payroll department. They can typically email you access to your pay stubs or print out physical copies to deliver or mail to you.

Recommended: What to Do When You Get a Raise

What Are Pay Stubs Used For?

You may wonder why you would ever even need your pay stub. Some food for thought:

•  It’s a good idea to review your pay stub every once in a while to make sure there aren’t any errors. After all, accidents happen.

•  By reviewing your pay stub, you can ensure you’re getting paid the right amount of money and that you have the correct amount of taxes being withheld (so you don’t end up owing more when it’s time to file).

•  Looking over your pay stub can also help you verify that your retirement contributions are being properly handled.

•  You may also need your pay stub as proof of income when trying to rent a new apartment or apply for a loan. Often, lenders want to see proof of income for personal loans, auto loans, and mortgages.

A pay stub can be an easy way to check your own financial standing and show potential lenders and landlords that you have a job and how much money you make.

Alternatives to Pay Stubs

If you can’t quickly get access to your pay stubs but need to provide proof of income to a lender or landlord, you may be able to prove your income in other ways, including:

•  The previous year’s tax return

•  Current bank statements that show direct deposit information

•  A proof of income letter (also known as a salary verification letter) from your employer

These documents may be able to satisfy the requirement when pay stubs are not available.

Recommended: 19 Jobs That Pay Daily

The Takeaway

Direct deposit typically makes getting paid easier, safer, and more convenient. But by foregoing the paper check in favor of direct deposit, you don’t necessarily get immediate access to your pay stub. In most cases, employers offer an online self-service portal so you can view your pay stub, but if you’re unsure, you can always reach out to your payroll or human resources department to discuss how to access your pay stub.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

How do I view my pay stub if I have direct deposit?

Most of the time, you can view your pay stub from direct deposit through an online self-service portal. More than 83% of employees in the United States have this option — and all you need to do is log in to the portal following the instructions from your employer.

If your employer doesn’t offer a self-service portal, you can typically contact your human resources or payroll department to get a copy of your pay stubs emailed or mailed directly to you.

What happens if your employer doesn’t give you a pay stub?

Most people do not receive a pay stub with direct deposit payments. Instead, employers usually make this information available via a self-service portal, though this isn’t required at the federal level. (State requirements may vary.) If you don’t have access to a pay stub via an online portal, contact your HR or payroll department to understand what steps you need to take to get a copy of your pay stubs.

Need access to proof of income as soon as possible? See if you can utilize last year’s tax return or current bank statements in lieu of a pay stub.

How can you get proof of your pay stub?

If you receive a paper check, it should come with a physical pay stub. If, like most Americans, you receive direct deposit, you can usually get your pay stub via an online portal through your employer. If you don’t have access to a self-service portal, try contacting your company’s HR or payroll department. They can typically provide you with physical or digital copies of your pay stub.

Photo credit: iStock/jivarphoto

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOBK0423022

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Dec
02
2024

Counter Credits Explained

By | money, Money & Life, Terminology | Comments Off on Counter Credits Explained

Despite the advent of digital banking and managing your finances on a screen, many people still step inside a brick-and-mortar bank to make a deposit. When they do, this transaction may turn up on their monthly statement as a “counter credit.” The reason why: They approached the counter at the branch and handed over funds that were credited to their account.

Here, learn more about counter credits and the role they can play in your financial life.

Key Points

•  Counter credits involve in-person deposits at a bank branch, using cash or checks handed to a teller.

•  Counter credits often clear immediately or within a business day, providing individuals with quick access to funds.

•  Bank statements reflect counter credits to differentiate them from other deposit types.

•  Those less comfortable with digital technology and frequently making large cash deposits may find counter credits ideal.

•  Despite digital banking trends, counter credits can be helpful for personal interaction and when handling large sums.

What Is a Counter Credit?

A counter credit is a cash or check deposit made to your checking or savings account in person at a brick-and-mortar branch of a bank or credit union. In that way, it’s really the most straightforward, traditional kind of deposit you can make.

This counter credit meaning is pretty narrow: It doesn’t include deposits made at an ATM, it doesn’t include mobile check deposits, and it certainly doesn’t include direct deposits from an employer. It has to be in person, at a bank, and with a teller.

As briefly noted, it’s called counter credit because you make the deposit at the counter inside the branch, and the teller then credits your account the amount you deposited. (If you withdraw money at the counter, it should show up on your bank statement as a counter debit.)

How Do Counter Credits Work?

Don’t let the unfamiliar terminology fool you: You’ve likely made a counter credit before. You simply enter your bank and then hand the money or check to a teller.

If you use a deposit slip from your checkbook, you can just add the date and the amount of money. If you use a bank’s blank deposit slip, it will require you to know your bank account number. If you don’t know it, don’t sweat it: Just take the slip to the teller and show your ID, and the teller should be able to help you with the rest.

Or, you may well be able to skip the deposit slip altogether. Often, just having your debit card and PIN handy will be enough to move the transaction ahead with the teller.

How Long Does a Counter Credit Take to Clear?

Cash deposited via counter credit should be available in your bank account quickly; sometimes almost immediately, especially with small sums. At other times, the funds may clear within a business day. This makes it an attractive way to deposit your funds. Worth noting: Large cash deposits may take longer to clear.

Check deposits can take a little longer, whether made at the counter or via mobile deposit. Typically, a domestic check takes one or two business days to clear. Checks for large sums or drawn on international banks may take longer.

Recommended: How Long Does Direct Deposit Take?

Why Do Counter Credits Appear on Bank Statements?

Your bank statement gives a complete picture of account activity during a statement period (usually a month). Every transaction and transfer is accounted for.

Because counter credits are a type of deposit to your account, a bank will include them. Labeling them as counter credits can make it easier for you to identify which deposits were made in person vs. other deposits, like mobile check deposits, ATM deposits, and direct deposits from an employer, a company (like an insurance company depositing a payout), or the government.

How Do You Make Counter Deposits?

As noted above, counter deposits occur when an account holder gives a deposit to a teller at the counter of a bank branch. The customer might use a deposit slip, filled out with account details, or they might swipe their debit card and enter their PIN. This process allows the teller to ensure that the deposit is going to the intended account.

Typically, the bank customer will get a paper receipt, showing that the deposit was accepted.

Although the deposit is handed off in person, typically a check will be verified and processed before the funds are fully available. This can take a couple of business days or sometimes longer. A cash deposit, on the other hand, usually clears within a day, though a large deposit can take longer.

Deposits vs. Counter Credits

Counter credits are a type of deposit. Thus, all counter credits are deposits, but not all deposits are counter credits.

In today’s world of advanced banking technology, you can deposit money into your account in a number of ways:

•  Direct deposit: A third party, like an employer with your paycheck or the federal government with a tax refund or unemployment payment, will electronically transfer money into your account.

•  Other electronic funds transfers: Other forms of electronic fund transfers that you might use to deposit money into your account include transferring money from one bank to another or moving money from a peer-to-peer payment app into your bank account after a friend sends you money.

•  Mobile check deposit: Mobile banking technology enables consumers to take pictures of their checks on their phone, from the comfort of their own home, then deposit them via the bank’s app.

•  ATM and retailer deposits: You can often deposit money to your bank account at an ATM or participating retailer. When depositing cash at an ATM, it can be a good idea to find an in-network ATM to avoid paying ATM fees. However, be aware that not all online banks support cash deposits at ATMs and may instead allow you to make these deposits at participating retailers, which could impose a small fee. (SoFi, for example, only supports cash deposits at participating retailers at this time.)

As you see, counter credits are just one of many techniques that can be used to get money into your bank account.

Recommended: What Is a Cashier’s Check?

Is Counter Credit Obsolete?

With more people using online banking, you might think counter credit is obsolete. However, in-person banking still has its place.

Some people just prefer the customer experience of walking into a bank and working with another human to deposit their funds. A counter credit can also be reassuring when you’re depositing a large sum of cash and don’t want to feed it into an ATM.

Pros and Cons of Counter Credits

What are the advantages and disadvantages of counter credits? Consider these points.

Pros

The upsides of counter credits are as follows:

•  Quick access to funds: When depositing a check or cash, the money is often available in your bank account soon thereafter, especially when depositing cash. There’s no need to wait for, say, the ATM you deposited your money into to be emptied.

•  In-person customer service: If you need help, the bank teller is literally right on the other side of the counter — and should be happy to assist you.

•  Ideal for large deposits and people who use cash: Some people who work primarily with cash and make large deposits may prefer to hand the cash or check directly to the bank teller. This can be a positive when an ATM or retailer deposit may be less practical (and might have deposit limits).

•  Easy to understand: People who have grown up with tech may argue that digital deposits are easier and more convenient, but if you’re not comfortable with these technologies, it may be simpler for you just to head to the bank and deposit money in person.

Cons

Next, review the downsides of counter credits:

•  Inconvenience: For many, the thought of driving to a bank and waiting in line in person is wildly inconvenient in this era of digital banking.

•  Inaccessible when traveling: Whether you are a digital nomad or simply traveling on your summer vacation, sometimes you simply can’t get to a bank branch. Mobile deposit (or signing up for direct deposit to automate the process) can help eliminate this issue.

•  Limited hours: Banks aren’t always open. They close in the evening, they may have short Saturday hours (if any), and they’re closed for holidays. But with online banking, you can make a mobile deposit any time of day (and often in the evenings at participating retailers).

Recommended: Online Banking vs. Traditional Banking

The Takeaway

Counter credits refer to in-person deposits (check or cash) into your bank account, made at a brick-and-mortar location. If you bank in person at a traditional bank, it’s likely you’ll see these transactions on your monthly bank statement. However, with the advent of online banking, you may make all or most of your deposits via functions like mobile check deposit and electronic fund transfer, as well as at participating ATMs and retailers.

If you don’t have a need for in-person banking, consider the benefits of an online bank account with SoFi. Note that SoFi does not currently support cash deposits at ATMs, though it enables you to make cash deposits at participating retailers nationwide for a small fee.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

🛈 While SoFi does not support counter credits, members can deposit funds using the mobile check deposit feature or make in-person cash deposits following these instructions.

FAQ

Is counter credit a direct deposit?

A counter credit is not a direct deposit. A counter credit refers to an in-person deposit made by you at your bank’s counter with a teller. A direct deposit is an electronic process in which a third party, like an employer or the government, transfers money directly into your bank account.

What is a counter transaction?

A counter transaction is a banking transaction made in person with a bank teller at the counter of a brick-and-mortar branch. This might include depositing money (a counter credit) or withdrawing money (a counter debit).

What is an over-the-counter deposit?

An over-the-counter deposit (aka a counter credit) is a cash or check deposit made into a bank account in person at a bank or credit union branch. The counter refers to the counter at which the bank teller works. You may see counter credits on bank statements referencing these transactions.

Photo credit: iStock/Fly View Productions

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOBK0423023

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Dec
02
2024

Using Someone Else’s Debit Card With Their Permission

By | money, Money & Life | Comments Off on Using Someone Else’s Debit Card With Their Permission

There may be times when you’ll need to use someone else’s debit card with their permission. Perhaps you’re picking up groceries for a sick friend or borrowing money from a relative to pay a bill.

Before you swipe, however, it’s a good idea to make sure you understand this kind of transaction and what is actually allowed. The details may depend on your bank’s terms and conditions, but typically they prohibit or advise against this kind of usage. Read on to learn more.

Key Points

•  Bank policy typically prohibits or cautions against using someone else’s debit card.

•  Adding an authorized user permits card usage but makes the account holder liable for expenditures.

•  Using a debit card without authorization constitutes bank fraud and must be reported right away.

•  Reporting unauthorized transactions within 60 days may absolve you from most of the charges.

•  Reviewing bank statements regularly and employing multi-factor authentication helps to prevent and detect unauthorized access.

Can I Use Someone Else’s Debit Card With Their Permission?

Each bank has its own terms of use for debit cards (and credit cards). Within such terms, the account holder and their friend or family member can determine if they’re allowed to lend you their card.

The terms will typically spell out what constitutes responsible card use, including this aspect.

Understanding Your Bank’s Terms for Card Use

When you opened your bank account, you probably received a physical and/or digital packet with all the terms and conditions. If you can’t find this, contact your bank, and they should be able to provide a copy. Or you might ask them directly what their policies are about lending your debit card to someone you know.

Within the terms and conditions for your debit card, the bank will likely state if you can let someone borrow your debit card. You may find that many financial institutions consider letting a friend or family member borrow a card to be unauthorized use — meaning it’s expressly forbidden.

A few may not expressly forbid sharing your card (and PIN number), though the terms and conditions will likely discourage it. If you choose to proceed, it’s important to understand who is responsible for the charges incurred in this way.

Checking Requirements for Giving Permission

While some banks may not explicitly prohibit you from letting someone borrow your debit card or ATM card, they usually include language in the terms and conditions that spells out your liability.

What does this mean? When you give someone your debit card and PIN, you are authorizing them to use it, and you will be responsible for whatever purchases they make. Perhaps you told them to take out $60 from an ATM, but they make an ATM withdrawal of $260. The amount withdrawn is your responsibility, and the bank cannot be liable. Due to the possibility of such situations, banks and credit unions prohibit or highly advise against sharing your card and PIN.

If you do give someone permission to use your card, it can be a good idea to sign a letter confirming your consent for the borrower to use the card. If a merchant challenges the borrower, they can present the signed letter to demonstrate they’re authorized to use the card. This may allow them to proceed.

Recommended: 10 Personal Finance Basics

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 4.00% APY on savings balances.

Up to 2-day-early paycheck.

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FDIC insurance.


Alternatives to Letting Someone Borrow Your Card

So if using someone’s debit card with their permission is generally frowned upon, what are some alternatives? Consider these options:

•  Give the person cash. For example, if you need your neighbor to pick up milk, coffee, and eggs at the grocery, consider giving them cash to cover the cost.

•  You might be able to send someone money to cover a purchase using a peer-to-peer payment app.

If someone more regularly needs to spend money from your account — and you’re okay with it — you could check with your financial institution about adding that person as an authorized user.

Adding Someone as an Authorized User

If your bank lets you add an authorized user or signer on your checking account, that person will typically receive their own debit card in their name (it may have a unique card number or the same one as the account holder).

That person can spend money from the account as they see fit, but they do not have ownership of the account. That means that you’re on the hook for whatever purchases they make.

An authorized user is different from a joint account holder. In a joint account, both parties are responsible for the funds in the account and any debt incurred. This arrangement often suits couples who are merging their finances.

Recommended: Money Management Guide

What Happens If Someone Uses Your Card Without Permission?

Letting a friend borrow your card to buy a coffee is one thing; someone using your card without your consent is another. Unauthorized card use is a form of bank fraud and is illegal.

Reporting Unauthorized Use to Your Bank

If someone uses your card without your permission, contact your financial institution immediately to report the fraud and cancel the card. There is usually a dedicated phone number or department for this purpose.

The FTC also recommends following up with your financial institution in writing after your initial phone call (and saving a copy of the letter).

If you’re not satisfied with your bank’s response, you can submit a complaint with the Consumer Financial Protection Bureau.

Recommended: Can You Use a Debit Card Online?

Getting Your Money Back

If you still have your physical card, you cannot be held liable for the unauthorized charges provided you report the issue within 60 days of receiving your statement showing the charges.

If your physical card was lost or stolen, however, you must report it lost or stolen before any fraudulent charges to avoid liability; otherwise, you may be responsible for some of the charges.

How much? That depends on when you report the loss:

•  Within two days, you’re liable for up to $50 of charges.

•  Between two and 60 days, you’re liable for up to $500 of charges.

•  After 60 days, you’re liable for all the money that was spent.

As you can see, reporting unauthorized charges as quickly as possible is an important step. You will likely have your current card canceled and receive a new one.

Changing Your Bank Details

If your debit card and PIN were compromised, it’s a good idea to set up a new PIN for your replacement debit card. For good measure, you may want to change your password to keep your online bank account safe.

Opting into multi-factor authentication (MFA) is another good way to keep your bank account safe.

Reviewing Your Bank Statements

Regularly reviewing your bank statements for signs of suspicious or unauthorized charges is a good method for spotting fraud.

Even better, consider opting in to text or in-app notifications every time your card is used. That way, you’ll know the moment your debit card is used without your express permission or fraudulently.

Recommended: How to Manage a Checking Account

The Takeaway

Letting someone borrow your debit card may not be expressly forbidden depending on your financial institution, but in most cases, banks and credit unions advise against it. And if someone uses your debit card without your permission, that’s considered fraud — and you should take action quickly.

When you open an account with SoFi, you can rest assured your money is in good hands.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

Can I authorize someone else to use my card?

Some banks and credit unions may allow you to add an authorized user or signer to your checking account and debit card. Just remember that, as the account holder, you alone are responsible for the spending that the authorized user does.

Can I allow someone else to use my bank account?

You can allow someone else to use your bank account by making them an authorized user or signer on your debit card. In this case, you are still responsible for the account’s debts, but the other person can spend freely, as well as deposit and transfer funds. For some people, such as couples, it may make sense to have a joint bank account, in which each individual has full privileges and responsibilities toward the account and its funds.

Can an authorized user of my bank account get in trouble?

If you add an authorized user to your debit card, you are responsible for their spending — not the user. For instance, if the user forces your account to overdraft and there’s a fee associated, you have to pay that fee. They will not get in trouble with the bank; you will. One other point: If you give your debit card to someone to use, there is a possibility that they might not be allowed to use it at, say, a shop on the corner you regularly buy from. The staff might choose not to honor the card, fearing it’s been stolen.

Can someone use my debit card with just the number?

A fraudster can use your debit card without having the PIN. In fact, they don’t even need the physical card at all. It’s important to keep your banking information — including your bank account number, bank account password, debit card number, and debit card PIN — confidential and secure. Don’t write the information down, and avoid sharing with people you know.

Photo credit: iStock/skynesher

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Dec
02
2024

Using a Debit Card Without a PIN

By | money, Money & Life | Comments Off on Using a Debit Card Without a PIN

When you pay with a debit card, you typically need to punch in your PIN. But if it’s been a while since you’ve used your card — maybe because you’ve been paying with a rewards credit card or a mobile wallet — you might find that you’ve forgotten the PIN entirely.

In this situation and others in which you want to use a debit card without a PIN, you fortunately have options. Here’s how to use a debit card without a PIN, and how to go through the steps for recovering your PIN from your bank.

Key Points

•  Running a debit card as credit at the point of sale requires a signature instead of a PIN.

•  Linking a debit card to a mobile wallet or P2P app allows payments without a PIN.

•  Debit cards can be used online without a PIN by providing the card number and expiration date.

•  Some merchants permit small purchases (under $25) with a debit card without needing a PIN.

•  Cardless ATM withdrawals can be done using a mobile app without a physical card or PIN.

Understanding Debit Card Technology

First, a little intel on how debit cards operate. EMV chips are now the standard in the United States for credit and debit cards. These chips are embedded in cards and add a heightened layer of security to these payment methods. (EMV stands for Europay, Mastercard, and Visa, the card issuers that pioneered this technology.)

However, there are two different types of chip cards: chip-and-PIN and chip-and-signature. The former, as you might guess, requires that you enter a PIN as added security. The latter requires only a signature.

Here in the U.S., credit cards are commonly chip-and-signature, and debit cards, connected to a bank account, are chip-and-PIN.

Recommended: Credit Card vs. Debit Card

What Happens When You Forget Your PIN?

When you forget the PIN for your debit card, it’s important to contact your bank as soon as possible to recover it and/or reset it.

But if you’re about to make a purchase when you’ve suddenly realized you can’t remember the number, your more immediate need is figuring out just how you’re going to pay what you owe. That’s where the following workarounds will come in handy.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 4.00% APY on savings balances.

Up to 2-day-early paycheck.

Up to $2M of additional
FDIC insurance.


7 Ways to Use a Debit Card Without a PIN

Forgot your debit card PIN? Don’t panic: Here’s info on how to use a debit card without a PIN.

1. Running Your Debit Card as a Credit Card

The easiest way to use your debit card when you’ve forgotten your PIN is to run the transaction as credit. You may have to sign for the purchase when you use this option.

Worth noting: The money will still come out of your checking account, though it may take longer to do so, and you won’t be charged interest. However, keep in mind that transactions processed this way typically won’t help you build credit with a debit card because it’s unlikely that they will be reported to the credit bureaus.

2. Using a P2P App or Mobile Wallet

If your debit card is already tied to a peer-to-peer payment app, you should be able to send friends and family money without your PIN.

Similarly, if your debit card information is already stored in a mobile wallet, you can pay with your phone at places where digital wallets are accepted.

3. Shopping Online Instead

When shopping online, you may not need to enter your debit card’s PIN. Instead, the online retailer might only require the card number and expiration date.

Sometimes, the site may also prompt you to enter your billing address and the three-digit security code on the back of the card.

4. Making Your Purchase Over the Phone

Similarly, you may not have to share your PIN over the phone when making purchases.

5. Making Smaller Purchases

In some cases, you might be able to use your debit card without punching in the PIN if the purchase is under $25. This can be quite convenient if you just need to top off the gas tank or pick up some milk and cereal on the way home.

Recommended: How to Combat Impulse Spending

6. Making a Cardless Withdrawal From an ATM

Not every financial institution offers cardless withdrawal at an ATM, but if yours does, you should be able to take out cash without using your PIN — or even your debit card.

Instead, you’ll set up the withdrawal in your mobile banking app, head to the ATM, and use your phone to complete the transaction. This would give you the cash you need to complete purchases.

7. Visiting Your Local Bank Branch and Withdrawing Cash

With or without your debit card, you should be able to withdraw cash from your checking account in person if your bank has physical branches.

You can fill out a withdrawal slip (you’ll need your bank account information) or just work with a teller, who will walk you through the process. You’ll probably need your photo ID.

Checking Your Account Balance Without a PIN

Many consumers rely on ATMs to check their account balance. The only problem? You need your PIN to get started.

Never fear: There are other ways to check your account balance without a PIN.

1. Asking a Teller at Your Bank

If you know your account number and have a photo ID, you can visit your bank in person. Once a teller has confirmed your identity, they should be able to help you access your account balance.

2. Accessing Your Mobile Banking App

If you don’t want to leave the couch to find out your balance, you can just log in to your mobile app on your phone or the online account on a computer. Rather than a PIN, most mobile apps require a username (or email) and password to log in.

Some accounts may have multi-factor authentication (MFA) or biometric screening to log in. That means you may have a code sent to your phone or email or you might use your thumbprint or face ID to log in. These features help make mobile banking safe.

Recommended: How to Keep Your Bank Account Safe Online

3. Setting Up Mobile Balance Alerts

Some banks will allow you to set up mobile balance alerts. You can receive updates via text, email, or in-app push notifications, including low-balance alerts that let you know when your checking account is running low.

Tips for Remembering Your PIN

Your PIN should be unique and random so that it’s hard for criminals to guess. PINs like 1234, 1111, and 0000 may be easy for you to remember, but they’re also easy targets for fraud.

But if you make your PIN more challenging to guess, it may be more challenging to remember. Here are two ways to help you remember your PIN:

1. Checking Your Banking App for a PIN

Some banks’ mobile apps may allow you to see your PIN. Doing so might require some type of identification confirmation, like two-step authentication or answering a security question.

Recommended: How to Manage a Checking Account

2. Contacting Your Bank

You can also try contacting your bank if you forgot your PIN, either over the phone or in person. In this event, the bank may require that you reset the PIN for your security.

The process to reset your PIN will vary depending on your financial institution. You can typically reset your PIN over the phone, online, or in person. Some banks let you reset your PIN at an ATM, but you may need to know your current PIN to do so.

The Takeaway

Using your debit card without a PIN is possible. You could complete a cardless withdrawal at an ATM, use your mobile wallet, or otherwise access funds without your PIN. However, if you’ve forgotten your PIN, it’s a good idea to contact your bank to retrieve or reset it.

Looking for a new bank account with a hard-working debit card and other perks? See what SoFi can offer you.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

Can a debit card be swiped without a PIN?

You can swipe a debit card without a PIN in certain circumstances. For example, some merchants let you run your debit card as credit, in which case you may just have to sign for the purchase. Sometimes, smaller purchases (under $25) don’t require a PIN either.

How much can you spend on a debit card without a PIN?

How much you can spend on a debit card without a PIN will vary with the way you access funds. For instance, you may be able to use a debit card without a PIN for smaller purchases (say, $25 and under). You could also use your debit card without a PIN by running it as credit, if the merchant permits this. The limit on this would probably follow your bank’s policies. (You might have a daily spending limit, or you might be able to spend up to the amount of funds in your account.)

You may also be able to use your debit card without a PIN when shopping online or over the phone, paying someone via a P2P money transfer app, or making a cardless withdrawal at an ATM. Again, limits may apply depending on the specific process and your bank’s or money transfer app’s policies.

Can I use my debit card in a store without a PIN?

Some stores allow shoppers to run their debit cards as credit at the point of sale. In this case, you don’t need your PIN to use your debit card when shopping. Also, if a purchase is fairly small (perhaps $25 or less), you may be allowed to use your debit card without a PIN.

Photo credit: iStock/miniseries

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Dec
02
2024

What Happens If a Money Order Is Lost?

By | money, Money & Life | Comments Off on What Happens If a Money Order Is Lost?

A money order is a secure form of paper payment that’s paid for upfront; when one gets lost, you may be able to get a refund if it hasn’t been cashed yet. In this situation, it’s important to act quickly and keep your paperwork organized. You may also need to pay a fee to get your money back. If the money order has been cashed, however, you may be out of luck.

Below, you’ll learn what steps to take if a money order is lost so you can manage your finances as effectively as possible.

Key Points

•  A money order is a secure paper payment that can be refunded if lost and not cashed, though fees may apply.

•  Acting quickly and keeping paperwork organized is crucial if a money order is lost.

•  Contact the issuer to check the status and possibly replace or cancel a lost money order.

•  Each issuer has a different process for handling lost money orders, often involving fees.

•  If a money order is cashed, recovering the funds is typically not possible.

🛈 Currently, SoFi does not offer members money orders.

Tracking Money Orders

Knowing how to track a money order is crucial, especially if you suspect that your money order is lost or stolen — or if you suspect you’re a victim of a money order scam.

When you purchase a money order, you typically use cash, a debit card connected to your checking account, or a traveler’s check (you usually cannot use a credit card). You’ll receive a receipt with a serial number or money order number. The issuer of the money order usually has a website where you can enter in this number to determine if the money order has been cashed.

If the money order hasn’t been cashed and you think it’s been lost or possibly stolen en route to its recipient, you’ll need this tracking number to replace or cancel the money order.

Recommended: Can You Buy a Money Order With a Credit Card?

What Happens If You Lose a Money Order?

If you lose a money order, you may be able to work with the issuer to replace it or cancel it (for a fee). Each issuer has its own process, detailed on its website.

However, if the money order has already been cashed, you typically won’t be able to recover the funds (more on that below).

Worth noting: Because money orders have the payee’s name and address on them, it’s difficult for the wrong person to cash a money order if they find one that doesn’t belong to them. This makes money orders significantly safer than sending cash.

Here’s what happens if you lose a money order from each of the major issuers:

USPS

The United States Postal Service has affordable money orders (as low as $2.35), but if yours is lost or stolen, you can’t cancel it. Instead, the USPS only lets you replace it.

You’ll need the serial number, post office number of the branch where you purchased it, and the dollar amount in order to track the money order on the U.S. Postal Service website. This process can take up to 30 days.

If you learn that the money order hasn’t been deposited, you can start a Money Order Inquiry. The U.S. Postal Service website advises customers to start the inquiry at a post office branch and then check up on the process online. It usually costs $20.15 in processing fees to replace the money order, and the process can take up to 60 days. The same process can yield results even if you don’t have your original receipt.

Recommended: How to Transfer Money Between Banks

Western Union

Before attempting to cancel a money order with Western Union, customers are instructed to call 1-800-999-9660 to check the payment’s status.

Western Union allows you to cancel money orders that have not been deposited. You’ll be issued a refund in roughly 30 days. (Additional time may be needed for it to arrive by mail.)

To start the process, fill out the Money Order Customer Request form on the Western Union website using the details on your receipt. There’s currently no fee for this request if a money order has a face value under $5, a $5 fee for money orders that are for more than $5 but less than $100, and a fee of $15 for those with a face value of more than $100.

If you don’t have the receipt, you may still be able to request a refund. The process is a little more complicated, and there may be an additional research fee of $15 charged.

MoneyGram

When you purchase a money order at a retail location, the issuer might be MoneyGram. Like the USPS, MoneyGram does not offer refunds on money orders; instead, you can only replace them.

You can track the status of a money order on the MoneyGram website if you have the serial number and dollar amount. If the money order hasn’t been cashed yet, MoneyGram allows you to fill out a replacement request.

The replacement money order takes between seven and 10 business days to process (and you can track that status online as well). The fee for this service costs $25 for money orders of $50 or more; 50% of the face value for those under $50.

If you are trying to track a MoneyGram money order and don’t have your receipt with the necessary information, you may be able to retrieve that information for an additional fee of $18 and then proceed with the replacement process. This can take up to eight weeks in total to complete.

Recommended: How to Transfer Money From One Bank Account to Another

Bank or Credit Union

If you purchased a money order at a specific bank or credit union, you can contact that financial institution — over the phone or in person — to ask how to track your money order. There is a good deal of variation among financial institutions, so you can also ask them to advise you on the process, timeline, and fees for replacing or canceling a lost money order.

Recommended: 50/30/20 Budget Calculator

Replacing or Canceling a Lost Money Order

As you’ve learned, each issuer has its own guidelines for replacing or canceling a lost money order. However, there’s a common set of actions to take in each instance.

Here’s what to do if you lose a money order:

1. Tracking the Money Order

First and foremost, issuers want you to track the money order before anything else. If you discover it has been cashed, you can’t move forward with the rest of these steps.

2. Getting in Touch With the Issuer

Getting in touch with the issuer to understand your options is a good next step. Some issuers may let you take action over the phone or in person, and others may direct you to a replacement or cancellation form online.

3. Filling Out a Request Form

To cancel or replace the money order, you’ll often have to fill out a form online. Depending on the issuer, you’ll need information like:

•  The serial or money order number

•  The dollar amount

•  Where you purchased it

Issuers may have options for canceling a money order even if you don’t have all this information. The fees and processing times for doing so may increase due to the additional work required to trace the money order.

4. Paying a Replacement or Cancellation Fee

No matter where you purchased the money order, you’ll likely have to pay a fee to replace or cancel it. The fee is usually around $15, and, as noted, can be higher if you don’t have your receipt.

Recommended: Where Can You Cash a Check With No Fees?

What Happens If Your Money Order Was Cashed?

If your money order was already cashed, there’s usually no way of getting your money back. However, you may still want the issuer to provide a copy of the money order so that you can use it to file a bank fraud claim or talk to law enforcement.

Depositing Money Orders

If you received a money order as payment and are not sure what to do, you have multiple options for depositing or cashing the money order.

•  Banks and credit unions are a smart option; if you take it to your personal bank, you may be able to deposit the money straight into your bank account.

•  You may also be able to cash your money order at a check-cashing location, Western Union, or the post office.

•  You might be able to cash a money order at a grocery store. Walmart will cash Western Union and MoneyGram money orders

Depending on where you cash the money order, you might have to pay a fee. For example, at Walmart, you may pay $4 to cash up to $1,000, which is the usual face value limit for individual money orders.

Recommended: How to Write a Check

The Takeaway

Money orders are typically a safe way to send money to friends, family, and businesses. However, money orders can get lost or stolen. What happens next will depend on whether the money order has been cashed yet. If your money order is missing and hasn’t been cashed yet, you may be able to recover the money — for a fee. If it’s been cashed, you are typically out of luck and cannot cancel it and/or get a refund.

FAQ

Can a lost money order be traced?

A money order cannot be traced. Like a personal check, a money order is a piece of paper without any embedded tracking technology or digital trail. The only way you can track a money order is if it’s deposited — at which point it’s too late to try to cancel or replace it.

Can you get a money order reprinted?

If you have lost a money order and it has not yet been deposited, it may be possible to have it reprinted. Fees may be involved. You’ll need to contact the issuer and follow their steps for replacing or canceling the money order.

How do you claim a lost money order?

If you believe your money order is lost or stolen, contact the issuer to check on the status. You’ll need information from the receipt. (If you don’t have these details, the issuer may be able to retrieve it, often for a fee.)

Each issuer has its own process. For instance, the USPS requires that you visit a post office in person and start a Money Order Inquiry. Western Union allows you to fill out a form online. Expect to pay a fee — and if the money order has already been deposited, you can’t cancel or replace the order.

How can you see who cashed a money order?

While you can’t see who cashed a money order, you can determine if it’s been cashed. Each money order issuer has its own process for tracking, but they will usually need information from the receipt, like the money order number and dollar amount. Contact the issuer (check their website or app, or call customer service) if you’re not sure where to start. Also, if you have lost or misplaced the receipt, you may be able to track that information down with the issuer’s help and for a fee.

Photo credit: iStock/MichaelPenhallow

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As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

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