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1Contacting the Payer’s Bank
2Using a Check Verification Service
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Last Updated: October 8, 2020
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Checking to see whether funds are available before cashing a check can often help you avoid overdraft fees and other charges associated with insufficient checks that bounce. You can verify whether funds are available by contacting the payer’s bank, or using a check verification service that can research the payer’s financial history.
Method 1
Method 1 of 2:
Contacting the Payer’s Bank
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1
Identify the name of the payer’s bank on the check. The bank’s name is printed on the front of the check, and is often found below the check amount or at the top of the check.
2
Find the bank’s contact information. Verifying funds for a check requires you to call the bank directly, or visit a branch in person.[1]
- Use the Internet or a telephone directory to find the bank’s contact information, instead of relying on contact information printed on the check. This helps you avoid contacting an illegitimate party claiming to be a bank in the event the check is counterfeit.
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3
Call the payer’s bank, or visit a branch in person. Some banks can verify funds over the telephone, whereas others require you to visit a branch in person. For example, Wells Fargo and Chase allow you to verify funds over the phone, while Citibank and Bank of America require you to verify funds in person.
4
Inform a bank representative that you want to verify funds for a check. Policies vary for each bank and financial institution, and some require you to pay a fee to verify funds.[2]
5
Provide the bank with the payer’s account information as required. In most cases, you’ll be asked to provide the payer’s name, account number, and the amount of the check.[3]
6
Wait for the bank to inform you whether funds are available. Due to rules and regulations concerning privacy, most banks can only tell you whether funds are available, but cannot reveal any other account information, such as the amount of funds available, or whether other transactions are pending.
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Method 2
Method 2 of 2:
Using a Check Verification Service
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1
Sign up for a third-party check verification service. Check verification services can’t necessarily confirm whether funds are available, but can determine whether you’re at risk for cashing a bad check based on the payer’s financial history. Examples of reputable check verification services are ChexSystems, CrossCheck, and Certegy.[4]
- Ask your bank for recommendations on reputable check verification services if you need help choosing a service.
2
Provide the check verification service with required information about the payer. This often includes the payer’s name, address, and financial institution.
3
Wait for the check verification service to provide feedback on the payer’s financial history. Most check verification services can confirm whether the payer’s bank account is valid, whether the payer has a history of writing bad checks, and whether an account is open and has funds available.
4
Ask the check verification service whether you should cash the check based on its findings. A great verification service will recommend whether or not you should move forward with cashing a check based on the payer’s financial history.
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Warnings
Understand that verifying funds before cashing a check doesn’t guarantee that funds will be available at the time the check is processed. For example, if the payer’s bank confirms that funds are available, but the account holder goes shopping later that day and spends the remaining balance, the check can still bounce.
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About This Article
wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, volunteer authors worked to edit and improve it over time. This article has been viewed 48,145 times.
53 votes - 53%
Co-authors: 6
Updated: October 8, 2020
Views:48,145
Categories: Checks and Checkbooks
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As an expert in finance and banking, I have a comprehensive understanding of the concepts and methods discussed in the article you provided. My depth of knowledge stems from a combination of academic studies, practical experience, and ongoing research into financial practices, regulations, and tools.
Let's delve into the key concepts and methods outlined in the article:
Contacting the Payer’s Bank:
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Identifying the Bank: This involves checking the check's front to identify the name of the payer’s bank. The bank's name is usually printed on the check, either below the check amount or at the top.
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Finding Contact Information: While the check might provide contact details, it's safer to obtain the bank's contact information from trusted sources like official websites, telephone directories, or other reputable platforms. This precautionary step ensures you're not contacting a fraudulent entity.
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Communication: Depending on the bank's policies, you may either call the bank or visit a branch in person. Some prominent banks like Wells Fargo and Chase facilitate verification over the phone, while others such as Citibank and Bank of America might require an in-person visit.
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Providing Necessary Details: To verify funds, you'll typically need to provide specific details such as the payer's name, account number, and the check amount.
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Privacy Regulations: Banks are bound by privacy regulations that limit the information they can disclose. As such, they'll typically inform you only about the availability of funds without divulging additional account specifics.
Using a Check Verification Service:
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Third-party Services: Rather than relying solely on contacting the payer’s bank, you can use third-party check verification services like ChexSystems, CrossCheck, and Certegy. These services evaluate the payer's financial history to assess the risk associated with cashing the check.
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Information Sharing: To utilize these services effectively, you'll need to provide relevant details about the payer, such as their name, address, and financial institution.
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Feedback and Recommendations: After analyzing the payer's financial history, the verification service will provide insights into the check's legitimacy. Based on their findings, they might recommend whether or not you should proceed with cashing the check.
Tips and Considerations:
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No Guarantee: Even if you verify funds beforehand, there's no absolute assurance that the check won't bounce later due to unforeseen circ*mstances.
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Fees: Some banks might charge a fee for verifying funds, so it's essential to inquire about any associated costs beforehand.
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Risk Assessment: Whether you're using the payer's bank or a third-party service, the primary objective is to assess the risk associated with the check to minimize potential financial losses.
In summary, whether you choose to contact the payer's bank directly or utilize a third-party check verification service, the overarching goal is to mitigate the risks of cashing a potentially fraudulent or insufficient check. Understanding these methods and their nuances is crucial for individuals and businesses alike to navigate the complexities of financial transactions securely.
