by David H. Ahl
THE MAGIC OF ELECTRONIC FUNDS TRANSFER OR THE LITTLE GUY TAKES IT IN THE EAR (AGAIN) OR WHY FOREIGN SUBSCRIBERS MUST NOW SEND CASH by David Ahl It all started innocently enough one day when I received four French checks back from the bank (Morris County Savings) full of staples, folds, and mutilations. Accompanying them was a teller's slip with the cryptic notation, "not cashed due to change in foreign exchange regulations." Okay, set them aside and remember to inquire about them next time I'm in the bank. Next day, I receive another slip from the bank charging my account $31.84, again with a cryptic notation on the teller's slip, "charged to your account by Manufacturer's Hanover Trust Company." Strange, I thought, since I'd never gone there in my life. I decided a visit to the bank was in order, even though I normally avoid it like the plague (just can't stand long lines and well-meaning-but-not-very-bright tellers). Decided to see an officer. Did you know that the "officers" sitting in the open area where you open new accounts and redeem bonds and get your signature approved et al are really just pseudo officers? After two of them huddled for about 15 minutes, one left to check the account "on the computer," some more discussion and then this woman pseudo officer announced, "Manufacturer's Hanover charged your account for cashing four foreign checks." "But they didn't cash them," said I. "Here they are." "Well then they charged you for processing them." "By processing, you mean returning them uncashed" I said, trying to keep emotion from creeping into my voice. "I guess you'll have to take it up with Manufacturer's Hanover," she said, cleverly trying to pass me out the door. "But they aren't my bank, you are!" I said, allowing my emotion somewhat more open rein. The discussion continued in an inconclusive but gradually loudening manner, when she hastily excused herself. She returned in 10 minutes with a large man. I had visions of being escorted out the door but he showed me into a big office in the back. If not a real officer, he was less pseudo than the ones in front. He explained that First National City Bank and Manufacturers Hanover were Morris County's foreign correspondent banks. There was another link through Heritage-Iron Bank but I never did understand that one. Anyway, the correspondent banks had announced that they were instituting a wonderful new computerized Electronic Funds Transfer System and they were doing away with time-consuming, messy, paper transactions and doing everything by electronic wire transmission. The announcements added that the cost per transaction was only $7,96 (M-H) and $9.26 (FNCB). This compares to $1.50 per check in the "old-fashioned" paper way. The announcement also said that regretfully, personal accounts could not be handled at this point. In short, what had happened to our account was this: we received 4 subscription checks from France (total value $38.00) They were sent for collection to M-H who charged $7.96 ea. or $31.84. They were not collected (personal checks) but we were still charged. The officer promised to "look into the situation." That was six weeks ago. A call yesterday indicated that Manufacturer's Hanover finally replied to the effect that they incurred the cost and it was up to us to pay (even though no service was performed). I also inquired whether the use of cash had been outlawed yet and they allowed that it was still OK. Hence, instead of adding $8.00 or $9.00 to foreign subscriptions, we are suggesting that foreign subscribers pay for subscriptions in U.S. currency. Yes, I know that sending cash through the mail is "dangerous" but I either (1) have to open a foreign bank account in every country in which we do business or (2) add $8 or S9 to foreign subscriptions or (3) risk mail theft, Frankly, the last seems the most sensible alternative. (We can still handle checks from Canada, but I suspect that won't last long). The recent postal rate increase, has also forced a slight adjustment in foreign subscription rates. Also, no more foreign student subscriptions-one rate for all. Foreign Subscription Rates: 1 Year $10.00 3 Years $27.00
