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Question on eBay fraud
commoncents123
Posts: 2,648 ✭
I have recently begun selling big ticket items on ebay ($1000+) and I never ever would take credit cards or Paypal for something like this.
But, I am still paranoid about fraud and payment reversals (similar to a fraudulent credit card reversal). In particular, with personal or business checks, when is the point at which you can be 100% that the buyer has no way to freeze the money or reverse a payment? Can this even be done with checks? And is a check cleared fully once the balance shows in your account?
I am probably going to be talking to the upper echelons at my bank about this, but I am still trying to get some idea beforehand.
But, I am still paranoid about fraud and payment reversals (similar to a fraudulent credit card reversal). In particular, with personal or business checks, when is the point at which you can be 100% that the buyer has no way to freeze the money or reverse a payment? Can this even be done with checks? And is a check cleared fully once the balance shows in your account?
I am probably going to be talking to the upper echelons at my bank about this, but I am still trying to get some idea beforehand.
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Comments
As your bank will tell you.
John
SFC, US Army (Ret.) 1974-1994
My bank tells me that if I don't hear from them in 2 weeks I can assume the check will not bounce. So far, I have not had a problem adhering to that policy. However, I've never had a bad check either.
http://www.shieldnickels.net
is required to honor all valid transfer requests...
A "cleared" check is a misnomer, really, because a transfer request can take place
subsequent to a check being cleared. Months later.
Hassles like this are what all businesses deal with all of the time - I mean charge
backs, reversed transfers, and etc. It is factored into their cost of doing business.
Anyway, that's my take on it. A banking professional could probably explain it better
than me.
John
SFC, US Army (Ret.) 1974-1994
right, you are pretty safe.
Accepting large checks from strangers has risks.
--Jerry
<< <i>Even though the check will probably electronically clear in 2-3 days no matter how far away the bank is, you can not be absolutely sure that the check is good until more time goes by. If the check is bad, it takes time to detect it and it takes time to notify you.
My bank tells me that if I don't hear from them in 2 weeks I can assume the check will not bounce. So far, I have not had a problem adhering to that policy. However, I've never had a bad check either. >>
My understanding is, that on counterfeit, forged or stolen checks, the statue of "charge-back" is up to 60 days. As such, placing a 61 day hold on all checks should guarantee that you will not occur a loss. That's the main reason why I do not accept checks of any kind along with the fees associated in "bounced" checks to the seller by his Financial Institution.
<< <i>Postal money orders are fool-proof though, since you have the cash in hand there is nothing a scammer can do through the USPS to take your cash back, right?? >>
Assuming it's not counterfeit or one of the many thousands of blanks that have been stolen from the post office.
Russ, NCNE
Just my 2 cents worth
AL
I got ripped on an ebay purchase for about $800.00. About three weeks later I received !175.00US back from paypal. (seller was very new)
SIX MONTHS LATER!!!!!! the remainder of my lost money was recovered via paypal. Yes, it does cost a bit but I will never do it any other way.
Bruce
<< <i>Assuming it's not counterfeit or one of the many thousands of blanks that have been stolen from the post office >>
But that can be taken care of by simply cashing the MO at the Post Office before sending the coin. If it is a stolen Postal Money Order they will catch it when you try to cash it and you will still have the coin so you haven't lost anything. (I would imagine there is a maximum amount you can cash at the PO but even if yours exceeds that limit I'm sure they can check to make sure the MO's are good, and if they are then you can deposit them at the bank.)
<< <i>I have recently begun selling big ticket items on ebay ($1000+) and I never ever would take credit cards or Paypal for something like this. >>
Bad mistake. You will make a LOT less money. I won't bid on auctions that don't accept PayPal--no matter how good of a deal it is. As long as you follow PayPal's rules (ship to a confirmed address, sig confirmation over $250), you should be fine.
<< <i>But that can be taken care of by simply cashing the MO at the Post Office before sending the coin. >>
Not really. The OP is talking about large transactions over $1,000. Try taking a couple thousand in MOs to the post office to be cashed...they just don't keep that much cash on hand.
<< <i>Not really. The OP is talking about large transactions over $1,000. Try taking a couple thousand in MOs to the post office to be cashed...they just don't keep that much cash on hand. >>
Simply advise them that you will present the MO's for redemption the next day and they will have the $$$ available.
Banks have a regulatory / legal responsibility to clear checks in a timely manner.
Fed Reg CC defines the banks responibility in clearing checks.
UCC 4-202 covering a bank's responibility in notifying you in a timely manner.
A bank's failure is referred to as a "late return". While there are numerous exceptions within the check clearing rules & regs, "late returns" are the result of a bank screw up and are NOT YOUR PROBLEM.
Please don not let banks crap all over you. They laugh at you as you walk out the door with your head drooping.
<< <i>Not really. The OP is talking about large transactions over $1,000. Try taking a couple thousand in MOs to the post office to be cashed...they just don't keep that much cash on hand. >>
Read the rest of the paragraph that you quoted part of, I covered the fact they couldn't cover large amounts, but they could still run a check on the MO's to make sure they were valid.
<< <i>
<< <i>Not really. The OP is talking about large transactions over $1,000. Try taking a couple thousand in MOs to the post office to be cashed...they just don't keep that much cash on hand. >>
Read the rest of the paragraph that you quoted part of, I covered the fact they couldn't cover large amounts, but they could still run a check on the MO's to make sure they were valid. >>
You don't have to go to the P.O. to get that info...go online ... click on the tab for stolen or hot Money Orders on the left
Link for P.O.