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USAA Check issued by Chase Bank

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I received a USAA check issued by J.P. Morgan Chase bank? Whats the real deal with that and how are they affiliated with Chase this way?

 

lol, i thought they were a competitor. :unsure:

 

(I googled first couldn't find anything) & how does Chase get their hands on so many things like this any way, - looks like they take care of everyones dirty work or something. - Someone said they used a bill pay service for rent through BOA on another forum and the check was issued by Chase. ;) - Does Chase secretly administrate all other banks or what? J/K Hahaha

 

Seriously one of those things that make you go hmmm though.

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Are you referring to the fact that you have a check from USAA drawn on Chase Bank? This isn't as uncommon as you may think. I remember when I refinanced my auto loan with PenFed. Their check was drawn on Wachovia. From what I have seen in the past, financial institutions and credit unions maintain accounts at other banks/credit unions.

 

If you were to ever send an Amex payment by wire transfer (which most people would probably never need to do), they would have you send it to an account that they have at Chase.

Edited by highflyguy

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Financial institutions, like you, have money that they are not actively using and would be better served by depositing it into a liquid, interest-bearing account, if possible. Maybe they'll want to take a loan out in the future in hopes that they can make even more money than they will pay in interest, so they're building a relationship now. Many financial products that you may wish to take advantage of are also available to financial institutions.

 

The credit unions we use are personal credit unions. There are institutions called corporate credit unions, that act as the credit unions' credit unions. The largest credit union in the United States is U.S. Central Credit Union, and it only offers its services to other corporate credit unions (they could very well be your credit union's credit union's credit union :huh:).

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It's called correspondent banking. Most banks/credit unions keep an operating account with another institution.

 

Typically this is used for the issuane of money orders/bank checks, and for wire transfers that the bank may be doing for cash management purposes.

 

Also, Chase may be performing account reconciliation services for USAA's bank checks. This is very common, and is used to ease the burden of reconciling an account with very high volume, and to help prevent fraud. Larger banks tend to have software programs/systems that perform these types of function and often sell it as a service.

Edited by sportster

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Chase is offering treasury services to USAA. It allows USAA to focus more on customers, rather than internal workings.

Edited by greywolf

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The interworkings of the banks....

 

Our Chase Commercial account we pay out your Corp Amex out of says

Book Transfer debit A/C: American Express Trustee CO New Dahli Dahli India (then some #'s) and the the 100,000.00 payment.

 

 

I wonder if they send our payment to new dahli.

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