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#36385 - 10/09/02 04:47 PM Verification of Funds
Princess of Power Offline
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Princess of Power
Joined: Aug 2002
Posts: 406
Napa, CA
We are finding that many banks in CA are no longer verifing funds for merchants or other financial institutions. Is your institution verifing funds or have you stopped this practice and why? Your responses are appreciated.

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#36386 - 10/10/02 01:17 AM Re: Verification of Funds
Princess Romeo Offline

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Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
Many of the larger banks, and I know of Bank of America and Wells Fargo Bank in particular, have stopped verifying checks as part of an anti-fraud campaign.

The banks have stated that check forgers will obtain blank checks or make counterfeits of checks and then call the bank to several times to "verify" funds in order to get a good idea of how much money is in the account. They will then forge the checks for amounts that will not automatically bounce as NSF.

We are still verifying checks, but are looking at this issue as well in our fight against forged/counterfeit losses.
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#36387 - 10/10/02 04:54 PM Re: Verification of Funds
Princess of Power Offline
Gold Star
Princess of Power
Joined: Aug 2002
Posts: 406
Napa, CA
Thank You for your response.

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#36388 - 10/10/02 10:58 PM Re: Verification of Funds
SJB Offline
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SJB
Joined: Jun 2002
Posts: 1,210
California
We still do it but we are pretty small and know the merchants pretty well. In light of privacy and identy theft issues I can understand why banks are getting away from doing it, though.
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My opinions are not legal advice and are worth what you paid for them.

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