PayPal announced today that you can now deposit checks in your PayPal account via photo upload from both Apple iOS [iTunes] and Android OS devices. Just sign the back of the check, take a picture of the front and back, type in the amount, and submit. (If you have a iPod Touch, iPad, or Android tablet with camera, that works too.) You are free to withdraw the funds into your linked bank account. Via MobileCrunch.

This is pretty cool, as it basically allows remote deposit of checks into any bank, not just Chase or USAA. Reading through the Terms & Conditions, you are limited to total deposits of $1,000 per day, and $3000 per month. You’re supposed to keep the check for 15 days to verify that it went through, and then destroy the check.

The only thing to consider is do you trust PayPal? Long-time readers may know that I have an uneasy relationship with PayPal. They’ve frozen my seller accounts before with no evidence and required all my personal information (SSN, credit report, driver’s license, utility bills) to release the money, and they’ve never been known for their stellar customer service. But I still use them when the alternatives are too inconvenient and the dollar amounts are small, because honestly I’m too lazy (and like I said, they already have my info). I simply operate on the principle that they can freeze my account again at any time, so I never leave more than $20 in my account. I’ll definitely try this app out the next time I get a small check to deposit, but only for small deposits that I’d be too lazy to deposit at a branch and it will be withdrawn immediately.

The Ally Bank blog recently announced that they are gradually rolling out their eCheck Deposit service, where you can use a scanner and submit your deposits over the internet without having to visit a branch or mailing anything in. This is another step towards being able to step away from the big Brick & Mortar banks and take advantage of the higher interest rates and lower fees of internet banks.

The service is currently only available by invited account holders of an Ally Interest Checking account, but you can call them at 1-877-247-2559 and ask to be added to their next rollout list. They expect to continue expanding this service throughout 2011. (Update: Ally contacted me and said that invited account holders of their online savings account and money market account are also eligible.)

This adds another feature to my Ally Bank Checking account review, which I found comparing the features to be one of the best online checking account alternatives out there. No minimums, no direct deposit required, all ATM fees refunded, 24/7 phone reps, and a decent interest rate.

My very first big boy bank account was with Bank of America, opened when I first landed at college nearly 15 years ago. I realized today that even though I have probably opened and closed nearly a hundred (yes, 100) bank accounts since then and pocketed several thousand dollars in signup bonuses (yes, a least that much) in the process since then, I have always kept that same Bank of America account open.

BofA has a bunch of different accounts across the nation, but from what I recall, the MyAccess Checking account I opened was one of the most basic and the easiest to avoid a monthly fee on. Today, I received notice that they will be raising some fees, effective for statement cycles starting on or after May 24, 2011. The monthly fee is now $12, up from $8.95. To avoid it, I’ll have to keep at least $1,500 in my account or have a direct deposit of at least $250. Previously, a direct deposit of any amount was acceptable.

Neither of changes will really affect my current banking patterns, but it does signal that fees are going up and reminds me that there are other deals out there. Am I somehow emotionally attached to a bank account after all these years? Or maybe I’m just a creature of habit.

In case you haven’t been notified, the e-mail marketing provider Epsilon Data Management got hacked and tons of email addresses and names were stolen. Clients include major companies like Chase, Capital One, Best Buy, Target, and more. While the data breach is not enough for identity theft, the fear is that they will use these emails to target phishing scams since they know what merchants you are comfortable dealing with.

While logging into my Bank of America account this weekend, I saw that they recommended me to download and install a free software program called Trusteer Rapport, which supposedly provided “online fraud protection”. Of course, as I click over, they also point out that:

Trusteer may offer a different privacy policy and level of security than Bank of America. Bank of America is not responsible for and does not endorse, guarantee or monitor content, availability, viewpoints, products or services that are offered or expressed on other websites.

So, basically, “hey, you should install this unknown software program to protect against other unknown software programs, but we don’t officially endorse it, and it’s not our fault if it doesn’t work or actually causes even more damage than doing nothing.” Huh?

First, I looked up Trusteer, a privately held computer security firm. There are numerous articles about Trusteer in various IT security magazines that I’m loosely familiar with, so that gave them some legitimacy. However, they are a new company (first mention is 2009) and unaffiliated with any other well-known security firms. Several other major banks besides Bank of America have “suggested” that people install Rapport, including Capital One 360, HSBC, and Suntrust.

How does Trusteer Rapport work? According to their FAQ:

– Rapport verifies that you are really connected to the bank’s genuine website as opposed to a fake website created by criminals. Although this sounds trivial, it’s not obvious that you reach a genuine website when you type your bank’s address into your web browser
– Once verification is complete, Rapport locks down communication between your computer and the bank’s website. This prevents criminals from hijacking your online connection with the bank
– Rapport protects your computer and internet connection by creating a tunnel for safe communication with your bank, preventing criminals from using malware to steal your log-in data and tamper with transactions

So, they try to stop things like fake websites and keyloggers. Also of interest is the fact that they work closely with the banks themselves to customize the software to each site:

Rapport’s access control policies are set by your bank. Banks that work with Trusteer build and maintain policies that define which information is sensitive and which operations on this information should be restricted.

So what’s with the non-endorsement? BofA says it’s because they already reimburse you for fraudulent losses. From the NYT Bucks Blog:

Using the Rapport software isn’t mandatory for Bank of America customers, Mr. Gordon said, in part because the bank already protects account holders from losses if their account is compromised. But it is advisable, he said, because malicious software programs can also steal sensitive nonfinancial information, which can be used in identity theft. “One of the goals of malware is to go gather information,” he said.

Some users of the of the software have noted that it slows down your system. Trusteer counters that it’s most likely due to your other security software conflicting with what Rapport is trying to do. Well, that sounds like a couple hours of fun troubleshooting. I dislike installing additional software unless necessary, so I think I’ll hold off for now. Prediction: Trusteer will be acquired by a large branded security firm in the near future.

If you have been a customer of Fifth Third Bank and incurred any overdraft fees related to a debit card transaction, the following may interest you. According to a class action lawsuit, Fifth Third Bank posted debit card transactions and/or ATM withdrawals in non-chronological order so that the bank could maximize the number of overdraft fees it charged to customers. Without admitting wrongdoing, Fifth Third ended up settling for $9.5 million. The official website is OverdraftSettlement.com. Taken from the claim form:

Eligibility: If you hold or held a Fifth Third Account any time between October 21, 2004 and July 1, 2010 and incurred at least one Overdraft Fee associated with at least one Fifth Third Debit Card Transaction, you are eligible to submit a Claim Form.

Settlement Benefits: Settlement Class Members who submit a valid Claim Form may receive a payment of up to three times the amount claimed on this Claim Form, depending on the total amount of valid claims submitted. The Court in charge of this case still has to decide whether to approve the settlement. Payments will not be made until the Court grants final approval and after any appeals are resolved. Please be patient.

The applicable period is pretty long, nearly six years. You could get up to triple your overdraft fees back. Supposedly final approval was supposed to be given on March 16, 2011, but I can’t find any updates. Claim deadline is coming up soon on May 2, 2011.

While catching up on snail mail after getting back from Thanksgiving, I found a letter from Chase Bank telling me that my Chase Fee Extra Checking account (formerly Washington Mutual Free Checking) will now be called Chase Total Checking as of February 8, 2011. Along with the new name comes – you guessed it! – a new $10 to $12 monthly service fee* unless I meet at least one of the following criteria each statement period:

• At least one single direct deposit of $500 or more,
• A minimum daily balance of $1,500 or more,
• An average balance of $5,000 across all Chase deposit accounts (checking, savings, CDs) and/or investment accounts with Chase Investment Services Corp,
• Pay $25 or more in qualifying account fees (not including this monthly service fee)

Back in April 2009, I reported that Chase was converting over WaMu Free Checking accounts and was keeping the important no monthly fees and no minimum balance feature. Well, that lasted about a year and a half.

I haven’t been using my Chase checking account very much recently, especially since their savings account basically pays no interest at all. As it stands, I’ll be subject to the $10 monthly fee. I don’t think I want the hassle of making online ACH transfers back and forth to simulate a direct deposit each month, so I’ll probably end up closing the account. WaMu was my primary bank for a few years, but I’ve learned not to get too attached to any single financial institution.

* According to the Terms & Conditions booklet, the monthly service fee is $10 for accounts opened in California, Oregon, or Washington. Otherwise, $12.