Can I Trust a Customer's Check Without Confirming Funds?

[barbara_anne]

If I call a bank stating that I am a business owner presented with a check from their customer, will they confirm that said customer does/does not have the money in the account to cover the check?

To make a long story short, I had a show with a declined card and called and left multiple messages for the guest to verify the credit card number. After many messages later and getting the host involved in talking to her friend, I closed out the show paying for the order ($29) because she said she would pay cash. (I know, I know don't scold me). Anyway, I told the host not to give her friend the order until I have the cash in hand, she agreed to this.
The host and the guest involved work together at a place that I frequently do business with and said guest was to give me the cash today. Instead of giving me cash, she handed me a check stating she did not have the time to go to the bank to get cash out. I then told the host not to give this person her products until I have called to let her know that the check cleared.

Frankly, I do not want to deal with this woman when/if her check bounces, nor do I want to be charged a $35 fee by my bank for the bounced check -- my gut tells me she will end up not paying for her products nor the bank fee and I would be out $29 plus the bank fee (though I would still have her products).
I would like to call her to tell her that as I was making a deposit at my bank, I noticed that it is an out of state check and that I do not accept checks that are not from a local bank.

The icing on the cake is that the guest is a former consultant.

 

[jbdowd0798]

I don't think they will tell you over the phone but you can walk into a local branch (if its a national bank) and cash it.

 

[wadesgirl]

I think I called once and went to another bank once. It may depend on the bank.

 

[skaugchef]

All you have to do is ask if the check will clear. I worked for the fraud dept of AMEX new cards and we had to check if funds would clear all the time.

 

[lkbcovington]

I work for a bank and most other banks will not even tell us anymore when we call to verify funds. Its 50/50 depending on the bank and who you get on the phone. If they do verify funds, it is no guarantee the check will still be good when your bank presents it for payment. They will only tell you 'the check is good at this time', so if there are other checks cashed before yours, it could still bounce.

Your best bet is stated above- go into the local branch of the paying bank and cash it over the counter. They are required to cash on-us checks if presented at their branch. You'll know immediately if the check is good. Sounds like it may be worth the inconvenience in this case.

 

[jimgass]

Some banks will charge a fee to cash a check if you don't have an account there. I've run into that before. I would hate to have to pay 5 bucks out of pocket just to be sure that the untrustworty person's check didn't cost me 35

 

[Hunter Mom]

Your best bet is stated above- go into the local branch of the paying bank and cash it over the counter. They are required to cash on-us checks if presented at their branch. You'll know immediately if the check is good. Sounds like it may be worth the inconvenience in this case.

National banks aren't required to do this if you are not an account holder there. Last year, I had a check (~$75) from a university drawn on a national bank. I happened to be near a branch and stopped in to cash it because I just wanted cash. They refused because I wasn't an account holder there. I was angry and checked into it with a friend who works for a bank regulatory agency, and national banks do not have to do this, although most do as a courtesy. US Bank does not.

 

[ShellBeach]

I had a big check from a person I didn't know. I called and they would not tell me over the phone. I had to go into the bank. Of course, they wanted a fee to cash right then and there. It used to be free if the check was drawn on their customers, even if the payee did not have an account, but no more. I can verify what Hunter Mom wrote - US Bank has this policy. I haven't tried lately with any local banks.

I hate taking checks. I'd rather sit on my butt and enter a cc number rather than drive to the bank, settle issues of people making them out to PC and needing a replacement check, and all of the worry whether they will clear, etc.

I do tell my hosts & guests that the show will not get entered until all the checks clear my bank, and that I prefer credit/debit or cash. Most folks are fine with it.

 

[kam]

I had to do this once.

I asked if there were enough funds to cover the check, and they said they could not tell me.

It was something with a wording issue.

We went round and round until they got me to ask the "right question".

I had to ask something like "if I were to choose to cash this check, would you be able to cash it?".

It was really weird, but they did guide me to get my answer. The answer I got was "no", but you might want to try back another day this week. We are open from this time to that time on Thursday. So, I am pretty sure they could see a habit of deposits (direct deposit?) and helped me come back when there would be funds available.

 

[winklermom]

Some banks will charge a fee to cash a check if you don't have an account there.

They shouldn't charge if the check is drawn on them. Also, when I worked for a bank (many moons ago), we could tell a customer that the check was good/not good "AT THIS TIME". We had to be sure to state these words so if someone came to cash it two days later and there were no longer sufficient funds, that we didn't get in trouble.

Some banks have a toll free number for merchant check verification. You might could try that and just see. Best wishes on collecting.

 

[lkbcovington]

National banks aren't required to do this if you are not an account holder there. Last year, I had a check (~$75) from a university drawn on a national bank. I happened to be near a branch and stopped in to cash it because I just wanted cash. They refused because I wasn't an account holder there. I was angry and checked into it with a friend who works for a bank regulatory agency, and national banks do not have to do this, although most do as a courtesy. US Bank does not.

Wow, I didn't know this- good info to have. We don't have many national banks around here (mostly credit unions and state banks). Yet another reason to support your local businesses and encourage others to do the same.