U.S. Checks
Today, I received a US Check in the mail. I'm quite surprised at the apparent lack of security features on the check;
- It's printed on what appears to be plain paper
- There is no signature as such
- It's not crossed
- It looks like it's been photoshopped and printed off by some bedroom geek
Of course, I know it's a real check (or as we in the UK say, cheque) as it's come from one of the largest websites out there. Very reputable.
After a bit closer inspection, I see this;
Checklock Security System: Chemically Reactive Paper, Micro-Print Signature Line, Padlock Icon on the front and Original Document Security Screen on the back.
All of which means nothing to the average non American I expect. I'm amazed at how this Cheque just doesn't look real.
Oh well, not to worry - I'll pay it in the bank sometime next week; the UK - US exchange rate is exceedingly poor at this moment, so there is no real hurry.
Questions about American Checks
I've heard that you can sign a check over to someone else, is this true? As an example, if I lived in America and got a check sent to me (made payable to me, G Burton), I could sign that over to anyone I wanted who could then cash it?
Can you walk into a bank in America and hand over a check and receive Cash for it, there and then? Take the same example as above, a check made payable to me from someone else.
I've also heard that it is illegal to write a check knowing that there is not enough money in your bank account to cover it. Is this true?
Would be interested to know the answers, thanks.
Comment by Sean — February 28, 2007 @ 6:59 pm
1] Yep, if the check is endorsed (signed by the receiver on the back), technically anyone can cash it. The bank may want to hold onto the funds until the check clears and not give you the cash immediately, but you should be able to deposit it.
2] Depends on the bank. I bank at a small local bank where everyone knows me, and have never had them deny immediately cashing any check. But larger banks likely won't just hand over cash unless you have an account at that bank. And probably not even then, unless the check is drawn on an account at their bank as well. They'll certainly let you deposit it, but will want to hold onto the money until the check clears.
3] I don't know on this one. I'd hazard a guess that it probably is, as I regularly see several listings in the local paper for individuals being prosecuted for writing insufficient funds checks. Though I don't think it's instantly criminal prosecuted, because otherwise anyone who has ever bounced a check would make a trip down to the local courthouse.
Comment by Affiliate Moneymaking — February 28, 2007 @ 7:26 pm
Hi Burt,
As far as I know, here are the answers:
1) Yes, you can sign a check over to someone else, who can then cash it.
2) Most banks require you to have an account with them before they will cash a check for you. If you have an account with them, ususally they will give you the cash right away. People who don't have bank accounts have to go to special check-cashing stores. These are very expensive - they take a portion of the cash for their fee. It used to be that you could take a check to the bank it was drawn on, and they would give you cash for it. But now I think they will only do it if you have an account there also.
3) Yes, I think it is illegal. Mostly, the worst trouble you will be in is to have your bank levy huge fees against your account. The company you are trying to pay with the check can charge you a fee for nonsufficient funds also. But I think you could also be prosecuted, if they thought you were doing it on purpose. If you do it too often, your bank could close your account, and it could be recorded so that you would have trouble opening a new account.
Comment by Chance — February 28, 2007 @ 7:29 pm
Once you endorse a US check (signing the back) in theory anyone can cash it unless you place specific instructions on the back ("For Deposit Only", etc.) I say in theory because I only did this a few times with my parents when I was a minor and we shared the same last name
No idea how stringent the banks have become against that sort of thing in recent times.
Yes, it is fraud to write a check that you know you can't back. Writing bad checks, depending on the ammount of the check, is a misdemeanor or felony and investigated by either the State Bureau of Investigation, or if they are sent across state lines through the mail the FBI or Postal Inspectors (also federal law enforcement agents).
NOBODY uses checks anymore here other than for business transactions- hardly any restaurants or stores take them, and everyone uses debit or credit cards. The few places that do take them electronically debit your account through their merchant account system, effectively making the check worthless and just capturing your account information and routing number for a direct debit.
Comment by James — February 28, 2007 @ 10:08 pm
One point,
Checks actually take a few days to clear through the bank.
This is why some of the email scams work. They send you a small portion of the millions you are getting so you can wire them cash from it to pay for some global fee.
A couple weeks later the check bounces and the amount you wired is taken from your account.
Comment by Gabriel — March 2, 2007 @ 12:50 am
Well, for the check that looks like it's on plain paper, it's normal, at least here, in Canada.
Companies usually use accounting softwares (really?). The one we use here allows us to print our checks using our laser printer, on paper we get at Staples… it's plain paper but with the right size and a dotted line.
And here, it is not illegal to make a check knowing there's not enough funds in your account, but your credit might be affected by such thing, so it might not be just as easy as it could have been when looking for a mortgage, by exemple.
Comment by burt — March 2, 2007 @ 2:06 pm
Thanks Guys
Comment by cannuck — March 6, 2007 @ 2:26 pm
Writing cheques in Canada without having the funds in place to cover the cheque is fraud. The banks / business have the right to forward this information to the authorities for charges.
The problem with this is that unless if can be proved you knowingly write a cheque in bad faith, it is harder to gain a conviction. But writing several cheques or having a frquency to this would be adicute to do so.
cheers,
Peter M