Verify Funds on That Check Before You Cash It
Here’s a simple tip that’s easy to remember, check it before you cash it. You want to make sure you’re not cashing a bad check and finding out is really quite simple. Here’s how.
While working at Bank of America, I learned a magic phrase that I hadn’t heard before: “verify funds.”
When someone writes you a check (I know, it’s 2020, but even I use them sometimes for plumbers or whatnot), you may feel uncomfortable about whether the check author has enough money to cover it. If you’ve ever deposited a “funny” check, particularly for a large amount, you know how painful it can be to have the money credited and then later taken back out. Fortunately, sometimes you can find out in advance if the check is good.
In general, you call the bank that houses the check author’s account, provide them the check information and they’ll tell you either yes or no. Of course, even if they say yes, that information is only foolproof for about the next 3 seconds since any number of things could happen before you deposit or cash the check, but it’s better than not knowing.Steal of the day: Chime’s Savings Account now offers a 0.50% APY! With this FREE service you don't need to worry about minimum balance requirements or maximums on interest earned
Ironically, it’s more useful when they tell you, “No, funds aren’t currently available to cover that check,” because now you have options.
- You can keep trying every day until funds are available
- You can contact the check author and work out a different method of payment
- You can decide never to do business with that person again
I did a little research for us all and called the top 6 national banks (some of them several times) and asked whether they would verify funds for a third party (the recipient of the check). Here are the results:
|Name of Bank||Over the phone?||In person?
|Bank of America||No||Yes
|PNC Bank||Yes (for a $5 fee)|
|No (but every other bank said Yes, so…)
If you’ve had an experience lately that doesn’t match the table, please leave a comment and I can revisit my findings. Read further on the best online checking accounts. Online banking usually offers much easier and flexible fund verification services.
Pros Tip! Run a Background Check On The Check Author
Verifying funds on a check before you cash it is a great way to avoid awkward check situations. On many occasions verifying funds is done after the check has been already issued. What if you could filter out potentially problematic check authors before receiving the check (and even before making a deal)?
Now it is possible, accessible and simple, with an online background check service. Background check services aggregate countless public records like criminal records, property records, contact information, personal information, and more, into one clear report. This can give you valuable insights into your potential check author – insights that might shield you from awkward situations.
We personally like BeenVerified background check service. It’s simple, intuitive and affordable. Starting at $14.86 a month, you can generate an unlimited number of reports.
Why not to try it out? Just throw in the information and get your report.