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Shopping When I pay for my groceries by check, where does that check go? Once you've paid by check for your groceries, the first place that check goes is to the grocery store's bank, where it is deposited. But the funds may not be immediately available, unless you and your grocery store use the same bank -- and actually, about 30 percent of checks are drawn on and deposited into the same bank, in which case the processing, or clearing, is handled internally. But otherwise, the grocery store's bank will probably want to verify the check with your bank, the paying bank, before it converts the check value to cash. But most banks do not communicate with each other directly; instead, they go through a middle man, an intermediary bank. There are three types of intermediary banks: * Federal Reserve Bank * Correspondent bank * Clearinghouse corporation The Federal Reserve Bank is...

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