Thursday, June 8, 2023

Bad Dollars: When Can a Bank Refuse to Accept Your Bills?

If you are one of those people who use dollars for some transactions in Costa Rica, it is likely that on some occasion the bank has not received the bills because they are in bad shape or have been changed, Or they will accept foreign currency in return. Commission to process.

What are the banking criteria for considering foreign banknotes such as dollars or euros to be “in bad condition”? The nation consulted four banks and three of them explained the criteria they use to review the condition of currencies before receiving or rejecting them, and the tolerances they generally have for accepting currency. There is some level of Other institutions do not have a policy of obtaining these tickets.

In this bank of costa rica, banknotes cannot be mutilated, that is, they must be whole and without tears or other damage; Neither can they be burnt or exposed to any form of combustion that affects their original conditions.

The financial institution does not receive stains, dirt or paint, or graffiti or some visible change as well as currency that lacks firmness and makes the bill difficult to manipulate. According to the BCR, currencies with this type of damage are classified as “in poor condition”, and They do not receive them in any transaction.

Although BCR has interpreted it as yes they get Bills with a minimal degree of damage, as long as they are used for deposits, that is, they do not accept dollars that fall into this category if the purpose is to replace the damaged bill with a good one. For this process, entity Doesn’t take a commission.

On the other hand, the Office of Corporate Communications popular bank Indicated that the entity has a process for reviewing dollars on the window to determine which ones may be challenged if unusual features are present.

The main characteristics of banknotes classified as “minor condition” by Banco Popular are those that have been repaired with tape, rubber, or any other product joining classes of currency, as well as those that have stains or discoloration. There are scratches greater than two square inches, holes, or deformities.

The financial entity specified that dollars that have certain types of contamination, such as ink or oil, as well as those that present dirt, scratches, discoloration, or changes in security threads that raise doubts about authenticity, should be discarded. Also classified as bad. Condition. ,

While these are the most common, Banco Popular stresses that staff have the training and criteria to detect other possible characteristics that could be grounds for rejecting a bill. In case of any doubt from the side of the client, the matter may be taken up with the concerned Head Office.

dollars in this bank that offer these characteristics is not received by the financial institution Nor shall they be exchanged for colones or the same currency, since they do not provide such a service and cannot export them to receive others in good standing in return.

Laura Moreno, Vice President of Corporate Relations bac, claimed that they don’t get, Under no circumstances, damaged dollar or euro bills, that is, they are torn or have no parts. They said that if, by mistake, you file a damaged bill, they forward it to the bank’s treasury for relevant registration and processing.

In National Bank, Limit it’s great to get them Since they receive damaged or torn bills, their denomination can be confirmed as long as they are authentic and as long as they keep both sides. They can be obtained if they meet these characteristics: discolored, discolored, with graffiti, dirty, with minimal stains, mutilated, perforated or torn.

The bank said through its press office, “As long as the bill is authentic, even if they are damaged, in case of damage we apply the same criteria as colones, that it should retain at least 60% of its original size.” keeps.”

However, users should pay a commission To process the dollar or euro as these currencies must be taken out of circulation. Dollars are received as a deposit or as a means of payment for products and services, i.e. bad or damaged bills are not exchanged for good.

Why is the commission charged?

Maria Brenes, director of Institutional Relations and Sustainability at Banco Nacional, explained that the financial institution charges a commission to receive them because they have to be exported to the United States in order to receive them and exchange them there.

“A commission is charged for receiving mutilated or damaged euro and dollar bills because these bills cannot be used to dispense them to the public, nor to keep them in ATMs, nor to sell them to businesses.” are obtained by means, i.e. they cannot be used for that end, ”said Brains.

According to the National Bank, exports generate processing costs because they must count, store and classify dollars in perishable conditions so that another financial entity can receive them, in addition to charging a fee to send them to the United States.

The commission charged by Banco Nacional is calculated as follows: $1 plus 0.50% of the amount exchanged. That is, if the person needs to give $100 with damaged bills, they would have to pay $1.50 ($1 plus 0.50% of $100, which equals $0.50).

and colon?

In contrast to impaired foreign currencies, in which each financial institution in the country defines its own internal policy for treating the receipt of impaired currency, public and private banks in the colonies are mandated to provide the service, unless certain criteria are met.

According to article number 274 of the Payment System Regulations of the Central Bank of Costa Rica (BCCR), the institutions to which the monetary authority distributes new bills or receives damaged numbers must provide exchange service to the public; either worsened by circulation; bill for coin, or vice versa.

As part of the criteria established by the Central Bank so that financial institutions can exchange colons, one that can attest to its authenticity, its denomination, and that both sides (front and back) of the bill are protected. Banks may charge a commission for this service.

Nation World News Desk
Nation World News Desk
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