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#581686 - 07/10/06 09:37 PM sending a check for collection
E Woodruff Offline
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Joined: Jan 2004
Posts: 2
We are seeing an increase in fraud on checks from Canada. Can anyone tell me whether the funds would be guaranteed if we sent the item for collection, or could the check still be later returned as counterfeit, etc?

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#581687 - 07/11/06 12:58 PM Re: sending a check for collection
RBanker Offline
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RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
Quote:

We are seeing an increase in fraud on checks from Canada. Can anyone tell me whether the funds would be guaranteed if we sent the item for collection, or could the check still be later returned as counterfeit, etc?





Funds are not guaranteed and it could still be returned as counterfeit - however, the benefit to your institution is that you have not given your customer credit for the item - until you receive payment from the Canadian Bank - when dealing with international items, collection processing is the only way to go, IMHO.
If you don't receive credit, or you receive notice from the Canadian bank of a fraudulent item, you simply notify your customer - since you've not given them credit, there is nothing to debit, no collection process if they've used the funds, etc!
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