Reply to Message

No Difference than with "Physical" Check
smiller987 11th Feb 2010
A specific check is defined by the ABA and account number, plus the check number. All checks are verified by the institution upon which the funds are drawn. For most institutions these days, the verification occurs in real-time; this is of course dependent upon the check receiving institution and the institution with the funds both supporting modern electronic checking systems. It is very rare for physical checks to actually be sent anywhere; many larger stores for example will themselves truncate (convert to electronic and shred) the checks right at the store. The cashier will scan the check and it will go through immediately as a debit. Attempting to reuse a check number in any way would lead to immediate rejection and flagging of the account for possible fraud activity. This also makes things like check kiting (writing a check on funds that you do not yet have available) much more difficult than in the past. In addition to the real-time electronic verification, most institutions still place holds on funds deposited by check, usually for 7-10 days, to allow for manual verification; a practice that began decades ago.
ie8 fix

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox