Re: Protecting Yourself from Counterfeit Checks

From: Herb Leong (herb@tomobiki.urusei.net)
Date: Tue Nov 08 2005 - 18:43:07 PST


Mark W wrote:
#
# I'm in the process of selling a truck and would like
# to know how to protect myself from fake cashier's
# checks or money orders, etc. What I'm dealing with is
# in the $7000 range. In the past I usually insist on
# cash, but I always run in the question of checks. Is
# there a way to protect yourself? Can a bank determine

# up front if the check is valid. I had once heard that
# even if it is a cashier check, the bank I deposit it,
# still wants a few days to see if it clears.

Hi, Mark,

A bank can only verify that funds are on deposit in the
ammount that you mention. There is nothing to keep the
funds from being withdrawn while the check is being
worked on.

The only thing that is as 100% solvent as cash at the
receiving end is a wire transfer. Western Union,
point-of-sale debit card, or bank-to-bank, this is
pretty much the same thing as cash. The buyer takes
almost the same risk as handing over a duffle bag
stuffed full of c-notes, but with the added benifit of
a electronic data trail.

I have seen some merchant setups where they will take
your check info and wire out the funds from your
account to their account and and hand you back your
voided check.

  Visa and other credit cards protect the buyer, not
the seller.

/herb



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