Internet scams, banking practices.

Posted by: Stephen Bennett on 01 February 2005

Hi all

Having just been subject to the typical 'bouncing cheque' based internet scam when trying to sell a Mac computer, I have some questions which some of the more 'bank literate' may be able to answer.

I didn't fall for the scam by the way!

I now know that, even though a cheque appears cleared in an account, it can still be cancelled at a later date. Does this only apply to overseas cheques?

What about bank transfer? Is this safe? If someone transfers cash to an account, can the transaction be withdrawn or cancelled by the person who deposited the cash?

What about PayPal? If someone transfers cash to your PayPal account, is that guaranteed?

Regards

Stephen
Posted on: 01 February 2005 by Camlan
Stephen

Cheques

UK rules - Cheques can only be returned unpaid by a Bank on the day of receipt (usually 2 days after paying in i.e day 3) or before 12am the next day (known as a late return). However in my days on the front line you couldn't return a stopped cheque (i.e one cancelled by the customer) late. Notwithstanding this the passage of days does not guarantee a cheque is paid. Cheques are still returned in the post and if delayed then basically tough on the presenter. To confirm a cheque is paid you need to specially present it through your Bank who will then post it to the paying Bank and telephone to confirm payment. Once this is confirmed cheque is paid. Alternative is to present it personally at the paying Bank and ask for a Banker's draft - again cheque is paid.

Foreign Rules - Similar to special presentation. Once cheque is confirmed paid to the collecting Bank (your Bank) and funds paid to you then don't think they can recover.

Bank Transfers

Don't believe these can be withdrawn except in the case of fraud(in which case you would be the fraudster and have withdrawn the money and be over the hill anyway) or error - i.e crediting the wrong account. Will refer to wife who works on this side of Banking and revert if any different.

Don't know about Paypal.

Hope this helps
Posted on: 01 February 2005 by garyi
If there is a belief of fraud on either side of paypal then they can step in and reclaim the money