How To Verify a Check Before Depositing (2024)

It’s possible to verify a check before you try to deposit it at your bank, and it’s wise to do so with any checks you have doubts about—especially large ones. You'll want to make sure a check is valid and the writer has sufficient funds available before you deposit it, or else it can bounce. If that happens, you’ll pay fees to your bank—and likely won't get the money you're owed.

Key Takeaways

  • Before depositing a check, look for signs of a scam, or indications the check is fake.
  • Try contacting the bank that the check is drawn on and asking to verify funds.
  • Businesses can use professional check verification services to spot potential bad checks.
  • Always check IDs when customers pay by check.

What To Watch For

You may never know for certain if a check is good, but you can gather some good information to help you decide what to do with that check.

There are a few items you can look into:

  1. Where/whom did the check come from?
  2. Does thechecking accounthave funds available?
  3. Does the check show signs of being a fake document?
  4. Does the person who gave it to you make a habit of bouncing checks?

Consider Where the Check Came From

Before verifying anything else, you can learn a lot by examining where the check came from and who gave it to you. If the person contacted you out of the blue to send you a check, then there's a good chance they're a scammer and the check is fake.

If someone tells you that you won a prize, lottery, or sweepstakes, and that they're going to send you a check, then that's a huge red flag. In addition, if you had to pay money in order to receive the check, or if the person sending it to you asks you to send part of it back to them, then it's a sure sign of a scam.

How To Verify Funds

If you’re holding onto a check that’s suspect, you can try to verify funds in the account. To do so, contact the bank that the check is drawn on and ask to verify funds. Some banks, in the interest of privacy, will only tell you whether or not the account is valid, or they will not provide any information at all.

Others may be able to tell you if there iscurrentlyenough money in the account to cover the check. Of course, that information is only a snapshot of what’savailable in the account at the moment you check. The account holder could withdraw funds, or other charges could hit the account after you hang up. If you’reable to verify fundsand you know that the check is good, then deposit the check immediately.

If you can’t verify funds (or if you want to be especially cautious), take the check to a branch of the bank that the funds are drawn on. You might be able tocash the check there instantly without depositing it—which eliminates the chance of the check bouncing. Some banks may charge a fee for this, and not all banks do it. You may also be able to cash a check at a retailer or check-cashing store for a fee (and those companies are usually able to verify checks as well).

How To Spot a Fake Check

Even if the account has funds available, it’s possible that you’ve been paid with a fake check. With today’s technology, it’s easy to copy arealcheck and print a genuine-looking (but fake) check.

Inspect every check you receive:

  • Make sure the check is issued by a legitimate bank and doesn't have a fake bank name. If the check includes the bank's number and address, then make sure it is correct.
  • Look for check security features, such as microprinting on the signature line, a security screen on theback of the check, and the words “original document” on the back of the check.
  • Review the amount of the check, because scammers often write them for more than the original amount that was intended.
  • Make sure there aren't any smudges or discoloration, which can indicate that the check was altered.

If you have any doubts, then don’t accept the payment.

Note

Sophisticated con artists can always buy genuine check stock (the security paper that checks are printed on) and use somebody else’s account number.

For Businesses: A Database of Bad Checks

If you run a business, you might accept checks and regularly have to wonder if those checks are any good. Verifying funds can be time-consuming, and it might not be possible to do so while customers are waiting in line.

The best way to protect yourself when bad checks are common (or just too expensive) is to use a check verification service. Those services help you identify bad checks by checking several databasesbeforeyou accept the check as payment (you run the check through a check reader or punch in therouting and account number online).

Note

Check verification services are only available to merchants and businesses.

Check verification services have lists of people who routinely bounce checks, and they can also (sometimes) tell if an account has been closed. For an extra fee, some services even guarantee the payment: If the check bounces they’ll pay you so you don’t have to eat the loss. If that’s more than you need, a good set of rules can help you and your staff avoid taking bad checks.

Check IDs When Accepting Checks

Be prepared by getting contact information from everybody who pays by check. Verify that you have a current phone number and address, and check their identification to be sure that everything matches.

Check local laws to find out what recourse you have when checks bounce. If you run a business, it may be worth posting a notice that informs customers of actions you intend to take when checks are returned.

Frequently Asked Questions (FAQs)

What happens if you deposit a fake check?

If you deposit a fake check, it will be returned due to fraud. However, that can sometimes take weeks to discover. If you've already spent the money, then you'll owe it back to the bank.

What should I do if I discover that I deposited a fake check?

If you deposited a fake check, do not spend any of the money. Contact your bank about the issue immediately. There may be additional fraud involved, and you might need to put an alert on your account or even change accounts. Alert the agencies listed below, and keep a close eye on your credit reports for any signs of suspicious activity.

How do I report check fraud?

If you think you're a victim of check fraud or any type of check scam, contact one of the following agencies:

How To Verify a Check Before Depositing (2024)

FAQs

How To Verify a Check Before Depositing? ›

Check Verification Services

Can you verify a check before depositing? ›

The best way to protect yourself is to use a check verification service. Those services help you identify bad checks by checking several databases before you accept the check as payment (you run the check through a check reader or punch in the routing and account number online).

How can I verify a check instantly? ›

A step-by-step guide to verifying a check online can be broken down into two main methods: contacting the issuing bank or credit union and utilizing third-party check verification services. Both options have their advantages and limitations, and it's important to weigh these factors when deciding which method to use.

How can I verify if a check is valid? ›

How can I verify a check?
  1. Use the issuing bank. Although you can use other banks, it's best to use the bank that issued the check to complete this process.
  2. Locate the issuing bank's name. ...
  3. Visit the bank's website. ...
  4. Call customer service. ...
  5. Provide routing and account numbers. ...
  6. Provide the check amount.
Dec 3, 2022

How do you prove a check was deposited? ›

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.

How quickly can a bank verify a check? ›

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.

Do banks actually verify signatures on checks? ›

Banks do not guarantee signature verification.

Although your bank may notice an unauthorized signature or missing signature(s) on a check, the volume of bank activity makes signature verification an unreliable method for protecting against fraud.

Can a check be verified online? ›

The answer is yes, but the availability of free services is limited. Some banks and financial institutions may offer online check verification services for free to their customers. However, these services are often exclusive to account holders and may have certain limitations.

What is instant check verification? ›

Instant Check Verification streamlines payment processing for businesses by providing secure authorization methods, efficient payment gateways, and automated validation processes for seamless financial transactions. This streamlined process saves businesses time and reduces the risk of potential errors or fraud.

What makes a check clear instantly? ›

Government Checks: Checks from federal and other government agencies generally clear faster. In-House Checks: If the check is drawn from the same bank where you deposit it, the process may be quicker. Certified and Cashier's Checks: These are considered 'guaranteed funds' and often clear faster than personal checks.

How long does it take to verify if a check is real? ›

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.

What is the certegy check verification process? ›

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.

What is TeleCheck verification? ›

TeleCheck can verify the presence or lack of unpaid debt related to a check writer in response to subscribing merchant's queries and provide check acceptance decisions based on what it finds.

What happens if a fake check is deposited? ›

Once a bank identifies a check as counterfeit, the depositor must cover the check's amount. Additional consequences include potential overdraft fees, late payment fees, and possible account closure. A negative banking history, such as being reported to ChexSystems, may result from depositing fake checks.

Do banks call to verify checks before cashing? ›

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.

What is proof of deposit on a check? ›

Proof of deposit is accomplished when the amount written on the check is compared with the amount on the deposit slip. This is the second step in the check presentation process for payment after checks have been sorted by a reader-sorter machine.

Can you cash a check before it deposits? ›

Yes. Banks are permitted to pay checks even though payment occurs prior to the date of the check. A check is payable upon demand unless you submit a formal post-dating notice with your bank, possibly for a fee.

Can you verify funds on a check online? ›

The answer is yes, but the availability of free services is limited. Some banks and financial institutions may offer online check verification services for free to their customers. However, these services are often exclusive to account holders and may have certain limitations.

Can a check cashing place verify a check? ›

If that check doesn't have the funds needed to clear them, there is almost no way that a check cash service will cash your check. Check cashing stores will verify funds before they cash just about any check out there.

Top Articles
Latest Posts
Article information

Author: Virgilio Hermann JD

Last Updated:

Views: 6357

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Virgilio Hermann JD

Birthday: 1997-12-21

Address: 6946 Schoen Cove, Sipesshire, MO 55944

Phone: +3763365785260

Job: Accounting Engineer

Hobby: Web surfing, Rafting, Dowsing, Stand-up comedy, Ghost hunting, Swimming, Amateur radio

Introduction: My name is Virgilio Hermann JD, I am a fine, gifted, beautiful, encouraging, kind, talented, zealous person who loves writing and wants to share my knowledge and understanding with you.