when you write a check, do stores know if you have the money in the bank?

Question

Like, if you are overdrawn in your account and you write a check, would the check be denied at the store, making it so you have to pay with cash, or will they accept the check, not knowing it will bounce?

I know I won't have the money in the bank, when I purchase the item but I definitely will by the time it clears.

Answer 1

Many stores now are going to electronic checking where when you write a check the funds are moved immediately from your account to the store's account. If you have insufficient funds, they will know immediately and the transaction will be canceled.

If you are thinking of buying a ton of Christmas presents with a rubber check don't do it. You will be embarrassed, prosecuted, possibly do jail time, pay a fine and have it on your permanent record. which employers, lenders and insurers all have access to and can see it.

If you can't afford gifts, so what? The people that truly love you will understand and anyone else doesn't matter.

Answer 2

No. They do not know at the time you write the check. Many people actually do write checks without having sufficient funds to cover the checks knowing that it will take about 3 days for the check to clear. The then deposit funds into the account to cover the check before it clears. However, if you do write a check with insuffient funds in the bank to cover the check when it does hit the bank, there are two possibilities. One is that the bank will charge you a steep fee for insuffient funds. The other is that the bank will bounce the check. If the check is bounced, the store might then charge you a steep fee for the returned check. They also might sue you.

Answer 3

When you write a check to somebody, that person has no way of knowing whether you have the money to cover it. But if you do it on purpose, you are starting down a road you don't want to go. This kind of behaviour will definitely launch you along a path to "bad reputation" as far as your financial dealings are concerned. If you "get out of Dodge" you might get away with passing one bad check, but it means that you are likely to do it again, and again. Your good credit will be shot, and you may not even know about it till the time comes you really need to have a good record, and instead get turned down for something important. Playing that game will absolutely come back to haunt you one day, besides which, it is just plain dishonest
Ohh, and by the way, banks are beginning now to go over to the "electronic transfer" system for checks, where you no longer have the comfort of thinking that you have a few days to get the money in there to cover the check before it arrives at the bank by snail mail. I gave somebody a check not long ago. Thirty minutes later I happened to browse my on-line account looking for something, and that check was already entered and posted. So you might not even have time to get packed and get outta Dodge.LOL

Answer 4

First off, stop writing checks that bounce!

Stores do not know if you have money in your account or not. Some stores use a check verification system, but all that does is check to see if you've bounced checks in the past. If you're a known check-bouncer, then the store can refuse to honor your check as a valid payment method.

You can wind up in jail for writing bad checks! I suggest you stop it now before it's too late.

Answer 5

I believe (and I could be wrong) that unless you have bounced a check before with the store, it will go through. Sometimes though, stores do call the bank to verify funds. It's not uncommon. I would say though, that unless you know that the money will be in the bank before the check clears, you really shouldn't go there, it doesn't only cause problems with money and your credit, but you could also land yourself in jail if you intentionally pass bad checks.

Answer 6

I never write a check that I know is going to bounce (I'm not a big fan of the $35 overdraft fee) but if I know I am within $10 of having no money as I write the check, I often laugh in a very "oh man I am so poor" kind of way. I also tend to make loud, aghast noises when my total is rung up and it is higher than I expected it to be - the cashiers seem to be amused by this. x)

Answer 7

depends on the store, some stores do electronic checking now, where it automatic takes it out of you account, i work in a store and we dont have this system, so we are getting checks back from the bank all the time, especially around this time of year...it almost takes someone full time to call and locate these people with bad checks and to try and recover the lost money for the store, but if we have a bad check on file and they try to come in and cash another check out registers stops the cashier and says they have bad checks, do not accept..contact mangager

Answer 8

Both kja and aggie are correct. They won't know if your account is overdrawn, but some use check verification companies to see if you have a bad check out or history of bad checks. But, don't get in that habbit of writing bad checks. You can go to jail for that and be out of a lot of money.

Answer 9

Your account balance is personal information and they do not have access. Which is why they have penalties and charges if you bounce a check.

And they can press criminal charges for a bad check.

Answer 10

when they cash the check the check may bounce nad so it means you have insufficent funds. they won't know until it bounces which can take a few days