Short Answer —Banks and check cashing stores may verify checks by either authenticating the funds with the check’s issuer directly or using a third-party check verification service. While places that cash checks don’t always verify funds before cashing the check, there will be consequences like fees if the check bounces.
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Banks and check cashing locations do not always verify funds before cashing or depositing a check; however, they do authenticate checks after you attempt to cash or deposit them.
Most check cashers authenticate checks by either using a third-party verification system or by contacting the issuer/check maker.
If you are concerned that you may have a bad check, you should investigate the check yourself before trying to cash it since not all check cashing places will automatically decline it.
Check cashing with no verification might seem like the easy or obvious thing to do to get the funds, but cashing a bad check has consequences and is considered fraud if you do so knowingly.
Our related research explains how you can verify a check before you attempt to cash it.
We detail the check authentication policies of several check cashers below — banks, check cashing stores, and retail stores.
We gathered this information by contacting branch or store locations and corporate customer service representatives for companies of each type.
Check Verification Policies at Banks
Banks do not verify funds before depositing or cashing checks. However, most banks will authenticate checks and verify funds after you deposit a check by contacting the issuer directly.[1][2][3]
For example, if you have an account at Chase Bank and deposit a check written on an account at Fifth Third Bank, Chase Bank may contact Fifth Third Bank after you deposit the check to verify the funds.
Though banks do not typically verify funds before the transaction, it is not advisable to knowingly cash a bad check at a bank. If you cash a check that bounces, the bank may charge you (and the check’s payor) a fee.
Check Verification Policies at Check Cashing Stores
Most check cashing stores authenticate checks by using a third-party system or by contacting the issuer or check maker directly.
We contacted the following check cashing stores for more details about their policies:
ACE Cash Express: Checks are scanned and verified before being cashed.[4] The check issuer may be called for verification if the scanner requests it.[5]
The Check Cashing Store: Locations may contact the issuing bank at their discretion to authenticate checks, store associates told us.
Check Into Cash: Check Into Cash authenticates all checks using a third-party program. Also, it may contact the issuer and check maker, if necessary, at the discretion of the store location.[6][7]
CheckSmart: Individual stores have discretion over whether or not to verify checks. If a location chooses to do this it will do so by scanning the check into its computer or by contacting the bank or maker of the check, depending on check type, store associates told us.
Money Mart: Individual locations may choose to contact the issuing bank at their discretion; verification varies by check type.[8][9]
PLS: PLS may contact the issuer of the check to authenticate it at the discretion of the individual location.[10]
Note that while it is often up to the individual location whether to contact the issuing bank or verify the check, you should not try to cash a fraudulent or bad check at a check-cashing store.
These stores do verify the identity of the payee before cashing the check, and you will be held responsible by the company if you cash a bad check.
Check Verification Policies at Retail Stores
Retail stores that cash checks usually use third-party check authentication systems and verify the identity of the payee who is cashing the check.[11][12]
When cashing a check at one of these stores, you will need to present your government-issued photo ID. The store may also request your Social Security number.
After verifying your identity, the store will run your check through a third-party authentication system like TeleCheck or Certegy, which will approve or decline the transaction automatically.
Declined checks will appear on your record with the third-party verification agency and may impact your ability to cash checks at that store and other stores in the future.
You verify funds in the check issuer's account. With that, you call the bank which has issued the check and which promised to honor the payment, and you ask them if the account has enough funds to process this transaction.
The bank might need the check number, issuance date, and amount to confirm if the check is real. Complete an ABA routing number lookup. Developed by the American Bankers Association in 1910, the ABA routing number identifies the financial institution responsible for the payment.
Bottom line. In most cases, a check should clear within one or two business days. There are a few cases in which a check might be held for longer, such as if it's a large deposit amount or an international check. Make sure to review your bank's policies for what to expect in terms of check hold times.
Yes, banks always verify checks before cashing. Checks have no intrinsic value, so banks have to check the account numbers to determine if there is money in the account and if the accounts exist.
Fake checks can take weeks to be discovered and untangled. By that time, the scammer has any money you sent, and you're stuck paying the money back to the bank. Your best bet: Don't rely on money from a check unless you know and trust the person you're dealing with.
A legitimate check features the issuing bank's logo on the front. If there's no bank logo on a check you've received, it's likely to be a fake. If there is a logo, check it against the bank's logo on its website to ensure it's identical. The quality of the printing counts, too.
There must be enough money in the payer's account to cover the check. The payee (the person the check is issued to) will be asked to show a government-issued photo ID, such as a driver's license, before the bank will cash the check.
You should be able to call the bank it was written on and verify that funds are available in that person's account for the amount of the check. They won't give you the person's account balance but will (should) tell you if there is enough in the account to clear the check.
The Z-method refers to looking over a check from the top left corner to the top right corner, through the body of the check down to the bottom left corner, and over to the bottom right corner.
Your customer presents a check at a point-of-sale terminal. The check's details are reviewed and verified via Certegy's comprehensive risk assessment technology. Certegy sends an instant accept or decline recommendation. The payment is deposited in your bank account as soon as the next banking day.
Some banks make check verification difficult or impossible. They may require you to visit a branch in person. Or, they may only verify whether the account exists, not whether it has any funds, in order to protect their customers' privacy.
To get a certified check, you'll have to visit your bank's local branch office. They're not available online or through a mobile app. However, not all brick-and-mortar banks and credit unions offer certified checks and may offer only cashier's checks.
To verify a check, you need to contact the bank that the money is coming from. Find the bank name on the front of the check. Search for the bank online and visit the bank's official site to get a phone number for customer service. Don't use the phone number printed on the check.
The grocery store deposits your check in its bank. The grocery store's bank passes your check, along with a payment request, onto an intermediary bank for verification and settlement. The intermediary bank identifies the paying bank.
You probably will be able to tell how your check was processed, after the fact, by looking at your bank statement. Your bank is required to list every EFT transaction in your monthly bank statement, including the dollar amount, the date the transaction cleared, and the name of the recipient.
Yes, banks keep records of cashier's checks and these checks are traceable. The bank will have a record on file and the recipient of the check will also be able to trace the check.
Introduction: My name is Geoffrey Lueilwitz, I am a zealous, encouraging, sparkling, enchanting, graceful, faithful, nice person who loves writing and wants to share my knowledge and understanding with you.
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