A Random “Financial System” question.
After reading the long and informative thread about cashier’s checks, (are they safe, how long to clear, pitfalls, etc.), I realized I probably don’t know as much about our financial system as I should. You bill me, I pay. That’s all I know.
But I had a question about a recent transaction, (which was completed just fine), that concerned me. Not from MY end, necessarily...but from the perspective of the dealer/seller.
The scenario:
I ordered a coin from an online listing, but the dealer didn’t want to accept a CC or Paypal. I assume this was in order to avoid fees. In a very real sense, I benefit from avoiding the fees too, so I was on board.
He asked me to mail a check....OR, deposit my payment into HIS account. He provided the account number at a recognized bank with a national footprint.
I thought that was a rather convenient way to handle it. And since it is a well known dealer, I figured my exposure by depositing my check into his account wasn’t really any worse than mailing a check. So, I zipped over to a local branch and did that.
But I got to thinking about HIS exposure by giving me his bank account number. Also wondered about the wisdom of a bank accepting deposits from unknown people all willy-nilly?
The transaction worked fine. By doing it that way, we avoided the time and (minimal) expense of the USPS delivering my check.
But it still seemed “odd” to me.
Anyone see a potential problem here? Would it make you nervous to send around your banking account number to clients? (I realize it’s also printed on checks....so maybe I’m just being silly).
Comments
For my first transaction with new seller ......... this scenario would make me feel uncomfortable in a sense of buyer's protection as a buyer IMO
I am glad it worked out good for you.
You did your due diligence, you checked on the transaction in real time. That's what people should do. Worrying about fraud is not the same as paying attention to your transactions. Peace Roy
BST: endeavor1967, synchr, kliao, Outhaul, Donttellthewife, U1Chicago, ajaan, mCarney1173, SurfinHi, MWallace, Sandman70gt, mustanggt, Pittstate03, Lazybones, Walkerguy21D, coinandcurrency242 , thebigeng, Collectorcoins, JimTyler, USMarine6, Elkevvo, Coll3ctor, Yorkshireman, CUKevin, ranshdow, CoinHunter4, bennybravo, Centsearcher, braddick, Windycity, ZoidMeister, mirabela, JJM, RichURich, Bullsitter, jmski52, LukeMarshall
Quite a few dealers of higher end stuff have wire transfer setup.
I don't see any difference in giving the account number than if it were a wire transfer. It is a regular practice.
Not sure I would give my bank acct. # to someone I did not know well, but on the other hand I do everytime I write a check. Good observation.
You use routing numbers. The bank can provide instructions.
On a business account (and some banks consumer) you can put a "debit block" on a checking account, so it isn't necessarily risky. Basically makes it one-way for electronic payments.
This happens all the time. If you do any transactions with one of them big bullion dealers (companies, corporations) you can easily setup a wire transfer account. Follow the procedures of your financial institution is a must.
I would be hesitant with doing this with unknown individuals.
Sign on the dotted line. Consequences be damned.
Wells Fargo (at least in NYC) no longer allows deposits into someone else’s account without THEIR signature on the check. I used to just put a generic “For Deposit Only” and the account number.
They explained the reason, but it was ridiculous. What I got from the conversation is that WF pays their tellers too little to expect them to be intelligent. And perhaps their fraud insurance premium is cheaper this way.
Either way, it’s all about the corporation and not the customer.
No different than wiring a payment to seller's bank. He has to provide you with sensitive account information for you to do so. As a precaution the bank account with witch I accept wire transfers never keeps a balance over $5.
Are they really this stupid, or are they destroying the dollar on purpose?
It is a reasonable method of doing business... and there are precautions the seller can take with his account. Cheers, RickO
It's only prudent to have an account for messing around that is separate from your funds that you want to keep super secure.
If you sold a coin to the dealer, you would likely receive a check from him bearing the same account number. So I don't see any additional risk. It does seem a bit weird for you to deposit it at his bank though, but I guess that's OK.
LIBERTY SEATED DIMES WITH MAJOR VARIETIES CIRCULATION STRIKES (1837-1891) digital album
My bank will only allow deposits of up to$500 from someone not on the account, so that may preclude some bigger purchases.
I worked at a bullion mint, and we had dealers often deposit checks into our account, rather than mail them in.
Use PayPal. So far, for me, it has been safe, convenient, and secure and when using a credit card you have pretty good assurance you will receive your item or get reimbursed.
"A dog breaks your heart only one time and that is when they pass on". Unknown