The Check Bounced After the Money was Deposited into My Account
Okay—guy’s here’s how it happened:
Two months ago a customer purchased an item that retailed for around $3,000 (machine has a floor limit of $3500). He was my neighbor so I gave him the piece without running the check through the machine. He asked if I could please wait to deposit the check two days later. I deposited the check on the day he asked and the funds were immediately placed into my account. Four days later the funds were removed from my account (I was viewing this online). I called the bank to inquire why?
Bank’s answer (Wachovia): The funds will be placed in your account right away BUT until the money has been collected from the consumer’s bank the funds can be taken directly out of the account and will show up as a bounced check.
The end result—I ended up getting the funds but took a month.
Recently: A customer (said he wanted to resell the diamond) from reading the blog contacted me and wanted to purchase a Hearts on Fire diamond. I offered him a very reasonable price above cost so I could move the diamond. He mailed me a check (online bill payment) and I received it and deposited it on Friday. The funds were placed into my account by Saturday sometime (again viewing online). I called the bank teller this morning and she said the funds are too be collected tonight and if I wanted to be sure to wait to send the piece tomorrow after calling her back. So I called and explained this to the customer—who is extremely pissed off because the diamond is going out tomorrow instead of today.
Side note: I asked the customer for him to fax me a copy of his license. Because he is scared of identity theft he blacked out his driver’s license number and birth date. I called him to verify it but would not give it to me.
What would you do? The customer is pissed off but I need to be sure the funds aren’t taken out of my account? The bank has told me to NOT send the piece if I want to be sure the funds are safe? The customer thinks I’m an idiot and that in the US once funds are placed into your account the money is good. Unfortunately, the last time this happened I learned the hard way.
Has this happened to you?
Hedda Schupak commented:
What's the old adage? Better safe than sorry? You did the right
thing.
Neil The Jeweler commented:
>"but that doesn't always assure the funds will be in the
account when the check clears."< How true, how true. I verified
with the issuing bank once, everything seemed good to go. Until the
check bounced anyway. An $18,000 bouncer wil stick in your memory a
long time and make you cautious.
Shanu S. Guliani commented:
I called Wachovia this morning and the teller said the funds were
collected. She said we immediately put it in your account as a
"good faith" but the actual monies were collected last night. I
myself didn't learn of this regarding checks until it happened last
time. I too figured once it cleared and the monies are in my
account it's 100% but not TRUE.
former jeweler now banker commented:
Checks sent for items are a huge red flag for any scam. Absolutly
never send an item until the check has cleared. This is why there
are "holds" placed on checks. To verify that the funds are
available. Local checks have shorter holds and out of state checks
have longer holds. You can call the bank the check is drawn from
and verify that they funds are in the account (or ask your bank to
do it), but that doesn't always assure the funds will be in the
account when the check clears. I agree with other comments, paypal
and wire transfers are much safer ways to accept funds. Just make
sure you state clearly to the customer that if they are sending a
check this will be your procedure.
Neil The Jeweler commented:
Seems like that customer is doing business for himself. As such he
should know that typically goods don't ship til the check clears
unless you have an established commercial account. If time was of
the essence, a wire transfer would have been faster. And blacking
out the driver's license is indeed very telling, its very difficult
to prosecute without good ID, should it ever come to that. If he
was in store would he still have insisted on no ID to accompany the
check? Its SOP, ID with check. To expect the jeweler to assume the
risk is unreasonable and unwaranted. The driver's license bit is a
red flag that would have caused me to back out entirely, shows bad
faith. Sorry if this offends the customer, but these were his
actions, not the retailer's.
I am that customer commented:
... (be more) careful in what and how you post publicly.
I am that customer commented:
Imagine my surprise in opening my JCK email this morning, and
finding this blog ... and you still have not sent the stone. Did
the check clear? Your characterization of our transaction, and the
relevant facts you conveniently omitted to enhance your image on
this public forum, makes me wonder what you left out in your
accounting of your experiences with HOF. You should be care
I am that customer commented:
... and am disappointed that all of the facts were not presented
here. I'm not going to engage in endless back and forth he said she
said email forum, but I will say I don't appreciate being
characterized on a public forum in this fashion as being "pissed
off".
Leonard Zell commented:
Hi Shanu, As a reail jeweler and now a jewelry sales trainer I am
warning jewelers because I have had this same scam pulled on me.
The con artist gets extremely mad hoping the jeweler will back off
and except their check, or in your case confirmation of their
deposit. I held off and let the customer and his wife raise the
devil in my store and thought I lost a customer until I found out I
did the right thing. Congratulate yourself, you did the right thing
too. Leonard
MJB commented:
Oh dear...is Paypal a safer method of transacting (but I know they
skim a percentage from the amount)? I really do not like checks...
