I have discover credit card - they send me blank check that, I can write for up to my credit limit and it's going to be 0% interest rate for 12 months. I deposited the check in my account - discover card posted the check on my account for $10,000. 3 weeks later, I found out that check was returned unpaid NSF. I called discover for clarification - they said, the check is cleared and they are going to request cash transfer from Federal reserve. Few weeks later, discover contacted me and said Federal reserve returned the money back to us instead of sending to my bank. Discover bank tells me this is your bank's problem - because my bank first sends the check with using Check 21 and next day my bank again sends physical check to be cleared. Discover bank allocate funds for their first request through Check 21 and rejects physical check next day. In this mess - federal reserve returns money back to discover bank, which discover allocated for Check 21 transaction. Discover thinks that the check was cleared with Check 21 system and returned with paper check. I found out 3 weeks later that the check was not honored. I am swamp with all the fees and everything - it is going to cost me about $2500. Can anyone please help me?

You need to talk with YOUR bank. You need your deposit slip and a statement from Discover that that they paid on the check you deposited. From there its up to your bank to straighten out the mess, since you did what you needed to do.

If necessary, you may want to enlist the aid of your state banking authority.

If this is the normal practice of your bank, I'm surprised this has not happened more often. Check 21 was devised to negate the need to send paper checks. Your bank should be imaging the checks and then sent directly to the federal reserve or to their processor. If the receiving bank cannot accept these types of checks, then a substitute check is created. Your bank should not be sending an item through twice.

I agree with the previous answer, your bank should be out of balance for the amount of the check ($10,000.00). That money should be credited to your account even if on a provisional basis until they can resolve the matter. You, the customer, should not be impacted during their researching of this matter.