Accepting Certified Check Payment

[Noonan]

I've never accepted any type of check payment for a sale before. Anything specific I need to look out for with a certified check? If the buyer is OK with me waiting for it to clear in my bank, does that clear me of any worry or could it still be a scam?

Just trying to cover myself...

[beshannon]

Originally Posted by Noonan

I've never accepted any type of check payment for a sale before. Anything specific I need to look out for with a certified check? If the buyer is OK with me waiting for it to clear in my bank, does that clear me of any worry or could it still be a scam?

Just trying to cover myself...

A certified check means the bank has verified the funds are available and sets them aside to cover the payment. Once issued it is very difficult to place a stop on a certified check.

That being said, since the funds are available and there is likely a fee to issue the check, why not a wire transfer?

[briboxer]

I would be concerned about a counterfeit check. Does the buyer have any feedback?

[Noonan]

Originally Posted by briboxer

I would be concerned about a counterfeit check. Does the buyer have any feedback?

Yes, appears to. Fairly long-time member of TZ. Would my bank pick up on that or is it possible that they would accept/clear a fake check?

[offrdmania]

Any checks, I always state that item will ship once payment clears regardless of being certified or not. Too easy to counterfeit these days. Also, once check is in hand you can call the issuing bank and verify if its real or not.

[cab56]

Wire transfer.

[Etschell]

Originally Posted by Noonan

Yes, appears to. Fairly long-time member of TZ. Would my bank pick up on that or is it possible that they would accept/clear a fake check?

dont do it. why cant he send a wire? international or domestic it still isnt that large of a cost.

[beshannon]

Originally Posted by offrdmania

Too easy to counterfeit these days. Also, once check is in hand you can call the issuing bank and verify if its real or not.

You can call to verify funds etc.

A little harder to counterfeit a certified check since a check once certified by a bank has a stamp indicating as such.

[jvmartin]

If for some reason you absolutely must accept a certified check, I would sit on it for a least 5 business days. Don't assume because it posts that it's cleared...

[MonBK]

Wait for it to clear before shipping the watch.

I've had checks come back after a week as being altered or stolen.

[Jim M]

Most banks by me don't do certified checks any longer. The account is debited and a bank check is issued simultaneously to maker. The bank check can be returned and redeposited with endorsement, "not used for intended purpose". In the chapter 13 bankruptcy trustee business I service, in past few years, certified checks and money orders used for debtor plan payments have been backed out of trust accounts upon deposit by debtor/maker maintaining it had been lost. A phenomenon that shouldn't happen; but, does.

[jjlawyer]

It can be 30 days before your bank finds out the check was fake. Don't think your bank releasing the hold means anything. Be on high alert for Canadian checks.

[drifter01]

I have read of and know of many fake certified check scams. I wouldn't trust them.

[skydriver]

Any good printer can print out a certified check in minutes. Meet the seller or buyer at their bank and have them give you cash.

[rolehex]

I wouldn't. Too many scammers and counterfeiters out there.

[Lordofrolex]

Wire transfer is probably the safest bet

[crowncollection]

I would not send anything until it's cleared for 7 days


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[1William]

I would do a wire transfer or no deal. If you can go to the bank to get a certified check you can send the transfer. Red flags abound. Just put it to the buyer and do the deal or move on. That simple.

[77T]

This is a case where you'd have much more to lose to be sure. One other possibility is a scammer has hijacked that TZ account so you may not know who is doing this.

Unless I know the buyer well, it's wire or I pass and wait for a better buyer.

[Knappo 1307]

Bottom line, if you trust the person sending it and have done your homework on them, go ahead....

[Roadblocked]

Originally Posted by Noonan

I've never accepted any type of check payment for a sale before. Anything specific I need to look out for with a certified check? If the buyer is OK with me waiting for it to clear in my bank, does that clear me of any worry or could it still be a scam?

Just trying to cover myself...

Why not just have him send the payment via paypal as friends and family? there is no paypal fee when money is sent this way and it’s essentially the same as sending a check?

[77T]

The thing about PayPal is it can always be reversed if PP finds fraud on the sender's side.

[jhcam8]

Unfortunately, PayPal can refund his money if there's a beef. I've taken checks from people I've done a lot of business with or who I know. There's still a risk - you might end up being the first guy getting the shaft.
I agree with those who point out that any check can be bad - probably a 30 day hold on your end would be the safest. Why won't he send you a wire? Just as much trouble to get a check certified as to send a wire.

[teqp]

Originally Posted by Noonan

I've never accepted any type of check payment for a sale before. Anything specific I need to look out for with a certified check? If the buyer is OK with me waiting for it to clear in my bank, does that clear me of any worry or could it still be a scam?

Just trying to cover myself...

Then why start now? If your policy has worked perfectly fine for you up till now, don't change. Have them wire the funds.

[jrs146]

Originally Posted by jjlawyer

It can be 30 days before your bank finds out the check was fake. Don't think your bank releasing the hold means anything. Be on high alert for Canadian checks.

This is sound advice. Banks are notorious for clearing funds and later discovering the check was fraud. They then hold you accountable for the funds and in crime cases hold you accountable legally for cashing a bad check. Unless you can verify the buyer is legit, safe yourself the risk and accept a wire.


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[NKflyer]

My bank charges for outgoing wire transfers but does issue certified checks for free so I guess it's possible that the buyer is just trying to economize although it seems kind of silly to delay the transaction of (presumably) a multi-thousand dollar watch over a ~$25 wire fee.

If the certified check is from a bank that has a branch in your area, just take it there, cash it, and walk out with $100 bills. No doubts then.

[GB-man]

Checks are only for deals with known parties you trust and have done business with prior.

[freefly]

Originally Posted by beshannon

A certified check means the bank has verified the funds are available and sets them aside to cover the payment. Once issued it is very difficult to place a stop on a certified check.

I've gotten a couple fake certified checks in the past. If you ever receive a certified check from someone you don't know, examine it before depositing it. If there are no anti-counterfeiting measures present (watermarks, micro-printing, etc.), then it's probably fake. Also, the very first thing to look for on a certified check is at least one perforated edge. If none are present, there is a 99.9% chance it's fake.

As mentioned, I would ask the buyer to wire funds instead. If a buyer is unable/unwilling to wire funds but is OK with sending a certified check, that is a big red flag IMO. The risk to the buyer is virtually the same, and it takes the same amount of effort to walk into a bank to order a wire as it does ordering a certified check. In fact it's actually easier to wire funds these days. The fees to do either are usually comparable/minimal as well, and with wires there is no postage involved (which can be spendy if sending checks via express/air mail). However, a forged check is much easier to pull off (and more likely) than a fraudulent bank wire. YMMV...

[Noonan]

The check is on its way. The buyer is trustworthy, provided his account wasn't hacked. First thing I'll do is call the issuing bank to verify that it's real. I'll also be holding onto the watch until it's cleared.

[roadkillrob]

Originally Posted by jjlawyer

It can be 30 days before your bank finds out the check was fake. Don't think your bank releasing the hold means anything. Be on high alert for Canadian checks.

This, it can take weeks sometimes to clear, bank will tell you all is good and then when the other bank figures out it is fake your banks pulls the funds, a week is not long enough, do a wire anyone not willing to wire is up to something in my book as if legit doesn't give them any leverage over a wire so suspicious in my book.