Advise on cashiers checks

[mjw930]

I know there have been quite a few buy and sell transactions with people here over the past few months and I'm looking for some advice. I've done a number of them myself over the years but with the rise in fraud I'm beginning to feel uncomfortable about blindly accepting a cashiers check as "certified funds".

Have any of you had to deal with cashiers checks from out of state banks and if so, how did you "certify" the funds before you released the property?

[chappy]

I sold a Harley to a kid in OH. He gave me a certified check. I asked him to give me the name of the bank as well as their routing number. I verified the bank information online, then had him send me the check.

In this instance, I had the luxury of having the check sent a week before he could send a truck. Made things a little easier, since the check cleared already.

In the least, I would verifiy the bank information online, even before he/she sends the check. That lets you do the research before you get the check, and it shouldn't offend the buyer, since they haven't sent or delivered the check yet.

Good luck.

[mjw930]

If they can do a CC, they can do a wire transfer.. Unless I KNOW the customer anymore, I deposit CC's and give them 7 - 10 days to clear...

The buyer seems OK as in his phones, address, etc. all check out (he's from Long Island) and he banks at Capital One Bank, something we don't have down here.

He's wanting to come down, inspect the boat, hand me a CC and drive home. I've said he can do that IF he gets a CC from Bank of America and we'll both go to my branch and I'll have them verify the funds and cash the check. The other option is for him to call his branch and do a wire transfer but that means he'll be spending the night because he doesn't leave until the funds are deposited in my account.

His other option is to bring cash (which he said he could do) but I'll have a cash pen and I'll be marking every $100 bill to make sure it's not counterfeit. Besides, if he can pull the cash why not go over to a BofA and have them issue a CC?

Am I being too hard ass? (I don't think so).

[Carl C]

MJW, careful with those cash pens. They are a good tool but try one on newsprint. It tests good. Just visually inspect the bills and use the pen as a back-up tool. Cash is the way to go and there are enough anti-counterfeiting measures built in now. I am a retailer and handle lots of cash. I've gotten one phony 20 and caught it right away just by looking at it.

[BUIZILLA]

my cash pen missed a $100 bill, actually missed 8 of them...same customer same day

the FBI showed up at my door wanting to know where I got it because the bank missed it too, it was THAT perfect... Fed Reserve Bank caught it

came from a Haiti customer

[mattyboy]

do the wire transfer arrange the seatrial early in the morning , after he can do the wire transfer it should clear by end of business that day and if it takes a day to clear he can find a place to stay i mean on a transaction on over 10 k what the hell is a nite and the red roof inn???

[Cuda]

I was just getting cerified funds from my bank last Friday. She said in Fla, they don't issue certified checks, but teller bank checks. You can go to your bank and get a wire transfer in usually less than half an hour.

[Carl C]

'Poodle, new 20's have a "spiderweb" of fine green lines that comes out as a solid light green when copied. That is what I look for first. I don't think anyone can duplicate the watermark portrait, color shifting ink, security strip and micro print. After checking all of those features and using the pen I don't think anyone could get a fake one past me. Also look for the wear where the bill has been folded and check that the serial numbers are not all the same.

[BUIZILLA]

there is also a odd-even serial number progression that doesn't match the month printed..

[mjw930]

Turns out he understands although I can tell in his voice he's somewhat put out, oh well!

He'll be getting a BofA cashiers check and it turns out he won't be taking it back with him, he's hiring a shipping company. He doesn't want to deal with towing it back 800 miles.

Of course this assumes he's for real, I'll believe it when I "see the money" :)

BTW, I don't think any bank calls them Certified Funds anymore, it's just teller, bank or cashiers check.

[Conquistador_del_mar]

Turns out he understands although I can tell in his voice he's somewhat put out, oh well!

He'll be getting a BofA cashiers check and it turns out he won't be taking it back with him, he's hiring a shipping company. He doesn't want to deal with towing it back 800 miles.

Of course this assumes he's for real, I'll believe it when I "see the money" :)

BTW, I don't think any bank calls them Certified Funds anymore, it's just teller, bank or cashiers check.

Glad you worked it out.
I was going to say that the easiest way was for him to work it out with his bank ahead of time to simply call them and they would wire transfer to your account, which you could then simply call to verify with your bank. Another way would be for the buyer to bring the cashier's check, but then you would have to physically go to your bank and have them "capture" the funds before releasing the merchandise. Either way guarantees you the funds. I have used both methods without a hitch - both buying and selling. Bill

[BUIZILLA]

Suntrust still issues Cashiers checks... at least 2 days ago they did :yes:

a bank check is basically a draft, big difference, it's good but could take a few days.. :rolleyes:

[justleft]

Last fall I was sent a bank check for a small EBay sell. $50

Took it to my bank, they took it. I shipped the item.

A couple of days later I get call from my bank and turns out it was fake.

I was the major suspect !! Had to show them the EBay trail from beginning to end.
Even got to talk with my local FBI guy.

Never heard another word, other then I am out $50. :cussball:

[zelatore]

Last fall I was sent a bank check for a small EBay sell. $50

Took it to my bank, they took it. I shipped the item.

A couple of days later I get call from my bank and turns out it was fake.

I was the major suspect !! Had to show them the EBay trail from beginning to end.
Even got to talk with my local FBI guy.

Never heard another word, other then I am out $50. :cussball:

Hardly seems worth it for $50... :confused:

[Ghost]

All of this discussion has me curious. For me, this is one important question, and justleft's scenario makes it easy to pinpoint.

What EXACTLY is it that the bank did to determine it was a fake later on, that they didn't do at cashing? Is there any procedure (I always thought it was wire transfer) that DOES this this in real time, such that there is no way for an uh-oh after the fact?

From earlier in the thread, it sounded like wire transfer can be done in ways where it still takes a day to find out what is real versus fake. Anyone know if wire transfers CAN be done in real time, or if all stuff is "fill out a form now, and we process it later"?

This stuff is pretty frustrating if you ask me. In a related story, I found out earlier this year that there is NOTHING to stop anyone who can do direct deposits into my bank account from taking out as much money as he wants. Just the threat of later reprisal if caught for fraud, but he can actually get his hands on the money and bolt before being caught. (For once I was ahead of the game because my ex-employer had shown himself to be dishonest, and so I asked some of the right questions in advance, and made sure it couldn't happen to me by switching my accounts.)

[mjw930]

All of this discussion has me curious. For me, this is one important question, and justleft's scenario makes it easy to pinpoint.

What EXACTLY is it that the bank did to determine it was a fake later on, that they didn't do at cashing? Is there any procedure (I always thought it was wire transfer) that DOES this this in real time, such that there is no way for an uh-oh after the fact?

From earlier in the thread, it sounded like wire transfer can be done in ways where it still takes a day to find out what is real versus fake. Anyone know if wire transfers CAN be done in real time, or if all stuff is "fill out a form now, and we process it later"?

This stuff is pretty frustrating if you ask me. In a related story, I found out earlier this year that there is NOTHING to stop anyone who can do direct deposits into my bank account from taking out as much money as he wants. Just the threat of later reprisal if caught for fraud, but he can actually get his hands on the money and bolt before being caught. (For once I was ahead of the game because my ex-employer had shown himself to be dishonest, and so I asked some of the right questions in advance, and made sure it couldn't happen to me by switching my accounts.)

It's that exact reason I have a second paypal checking account that usually has nothing in it. If I need to pay for something with paypal I transfer the money in online. It's available immediately but doesn't "post" until the following day.

That post issue is what means that even a wire transfer isn't officially in your possession until they post all transactions at the end of the day. It may show up as pending and depending on your bank's policies, be available to you but it's not official until it posts that evening.

According to Wikipedia (not always 100% accurate) this is what the term certified funds means:


In the United States and Canada, Certified Funds are a form of payment that is guaranteed to clear or settle by the company certifying the funds.

When making certain types of transactions, such as purchasing real property, motor vehicles and other items that require title, the seller usually requires a guarantee that the payment method used will satisfy the obligations. To do this, the seller will require certified funds, usually in the form of:

* certified bank check
* cashier's check
* money order (usually with proper identification)
* traveler's check (usually with proper identification)

Specifically, personal checks are not allowed, as the account may not have sufficient funds, and credit cards are not allowed, as the transaction may later be disputed or reversed.

Sometimes steps may be taken to ensure that certified funds cannot easily be forged. These steps can include various unique stamps, inks and hole punchers, as well as the assistance of a machine such as a protectograph.

So, for all intents and purposes a certified bank check and a cashier's check are the same thing.

[motorcity]

I thought I remember seeing people getting burned on wire transfers, also. If I recall, someone uses a check deposted into an account. Then wires money to another account, and the check is bad. The account that the money was wired to, is debeted back, because of the bad check. I know this would depend on the banks policy on putting a hold on certain amount checks, but I know that some don't

[mjw930]

I thought I remember seeing people getting burned on wire transfers, also. If I recall, someone uses a check deposted into an account. Then wires money to another account, and the check is bad. The account that the money was wired to, is debeted back, because of the bad check. I know this would depend on the banks policy on putting a hold on certain amount checks, but I know that some don't

Wire transfers are non reversible. That's different than debiting an account, which is what happens when you pay for something using a bank draft like your mortgage or a car loan. EFT payroll deposits are bank drafts, not wire transfers.