Cheque vs bank transfer

[TooNice]

When it comes down to it, they both leave the payer (who pays in advance) equally exposed right? Is there any reason why a recipient would prefer receiving a cheque?

I am buying a second hand projector off someone on AVForum. The seller (and I) have no feedback on that site, but nothing flags out as suspicious. We are now at the stage where we are to decide how I should part with my money, and the seller (who seems unfamiliar with the concept of bank transfers - the only thing I find slightly peculiar) said that he called his bank and they advised him that I should send a crossed cheque or bank draft. The seller then mentioned that he could then pay in on a fast clearance and that would take one working day. The projector would then be dispatched to me.

As far as I am concerned it doesn't make a big difference. This is a relatively high risk transaction for me either way. It means that I'll have to find an envelop, buy a stamp and send it off. I suppose that the fact that he has receive the cheque mean that I can confirm where his postal address. From a speed perspective though, I reckon that a bank transfer is going to be quicker, and I do question the overnight 'fast clearance' system mentioned. So does anyone know why a person would prefer a cheque, or a bank would suggest that they go for a cheque over a bank transfer (I am ruling out a banker's draft simply because they charge an arm for it)?

[Saracen]

One reason for perhaps preferring a cheque is that the recipient may not be a believer in online banking. I sympathise with that, as I'm not either. As far as I'm concerned, it offers me few real advantages, and does raise some security issues which, for me, aren't acceptable. So I won't use it. Lot's of people think that I'm being paranoid about that, and they're welcome to that view. But it;'s my money at risk if I use it, not theirs.

So, were it me, the only way I could check if a bank transfer has arrived is by going to the bank and asking. At least with a cheque, I know when it's arrived, because I get to hold it in my hand, and then get to pay it in to whichever bank account is convenient at the time.

Also, given that there's a preponderance for bank fraud using online banking these days, far more scamsters are likely to be compromising bank accounts online than they are physically getting hold of cheque books, so the fact that you are able to send a cheque might imply you do have legit access to the account.

Of course, cheques have weaknesses too. The book could be stolen in a burglary, for instance, and it can take time for cheques that appear to have cleared to actually be safe to rely on. That's why, personally, I wouldn't be either buying or selling anything of any value remotely like this. I wouldn't take the chance. But, that's me. You're obviously aware of the risks, and are prepared to take them. Fair enough. It's also why people prefer bank drafts, because then your bank take the money from you, and providing the bank draft isn't fraudulent or stolen, payment is pretty much guaranteed from the bank, 'cos it's a cheque drawn directly on the bank, not on your account. For many years, second-hand car sales used to be either by cash or bank draft, or collection of the car after a cheque had cleared.

Oh, and it might just be a generational thing. Typically (though there's a LOT of exceptions), younger people are happier with online transactions, payment by bank transfer, etc, than older ones. Maybe it's just a comfort-zone thing.

[Clunk]

I would have said there's more chance of fraud from a cheque for both parties. For one, they have your signature (assuming you do it right) and a sample of hand writing, albeit a short one. Some people foolishly add their cheque card number and expiry date too.

If you are accepting a cheque as payment, you don't know that the cheque is valid and sometimes it can take weeks for a cheque to surface as a stolen one, in which time, you have sent the goods and then the bank take the money back.

I always used to be wary about giving out bank details, but there's not an awful lot anyone can do with them once they have them, unless they have other details too.

It happens a lot on here too, people take your details and then back out. sh1t happens.

[TooNice]

Yeah, the signature part thing was also on the back of my head. I didn't point that out because I wasn't sure if it was just paranoia on my part Actually, I guess I am part of the (slightly) younger crowd who are at least as comfortable - if not slightly more with online transactions than by cheque.

A bank draft only provide a guarantee to the recipient of the right? As far as the recipient is concerned, it's paid in a bit like cashed in quickly. But does it provide any benefit for the buyer?

Actually, I have been offered to pay on collection too. Having to take most of a day just to go and back aside, I am generally not too keen on carrying a large amount of cash on me.

[PeterStoba]

Online bank transfer or cash over the counter is instant, so can't see why he would want to wait and use a cheque

[Zak33]

Some people really don't like giving their bank account & sort code details out to people.

Pay the man a cheque... dont fret it. That way YOU have

AN ADDRESS (it has to be real, cos its gotta get to him)
and the bank will have
HIM PAYING IT IN ON CCTV, and A SIGNATURE>

You get neither with a bank transfer.

I likle cheques.... they're good sometimes

[merdat]

I'm kind of a Cheque man myself, see a lot of stuff in the 'for sale' forum that I would buy but most are for Bank Tranfer payment and i'm just not keen on giving out Bank details either. I use paypal on ebay for small purchases and it seems to work ok for me. Cheques are on the way out though and soon we will have no option but to do everything on-line.

[Whiternoise]

Quick way is to go to his bank, ask for his acc number and do a direct deposit into his account. That way you're both basically anonymous and he just has to look for the added amount. Keep the slip that you deposit if they complain so that you have proof. Of course it doesn't guarantee you much security in return..

[Clunk]

Some people really don't like giving their bank account & sort code details out to people.

Pay the man a cheque... dont fret it. That way YOU have

AN ADDRESS (it has to be real, cos its gotta get to him)
and the bank will have
HIM PAYING IT IN ON CCTV, and A SIGNATURE>

You get neither with a bank transfer.

I likle cheques.... they're good sometimes

All good points there Zak, but I would say that if it ever got to the point where you needed any of those, chances are, you'll not see your money again anyway.

I supposed it's a gamble you take when you buy/sell second hand items.

And then there's death by paypal...

[Saracen]

Quick way is to go to his bank, ask for his acc number and do a direct deposit into his account. That way you're both basically anonymous and he just has to look for the added amount. Keep the slip that you deposit if they complain so that you have proof. Of course it doesn't guarantee you much security in return..

I don't know about anyone else, but if some anonymous bloke walked in off the street and asked my bank for my account number, and they gave it to him, I'd change banks. I'd be furious if they so much as admitted I had an account there without my permission.

I would also think that disclosing such information in that way would be an obvious breach of the Data Protection Act.

[TooNice]

Fair points being made. To be honest, I think that the risk is on me either way. It's partly why I prefer bank transfers though - it's just quicker and convenient. It would be a major hassle if a seller decides to run off, with or without his address. I mean what can I really do if that were to happen?

[dodgybob]

With payments between banks moving increasingly from the 3 day BACS transfer to the 2 hour Faster Payments (FPS) there is increased risk as FPS payments can't be recalled. A BACS transfer can be recalled shortly after the payment is requested if you have second thoughts or suddenly realise you're sending it to the wrong account number.

[Butcher]

I'm kind of a Cheque man myself, see a lot of stuff in the 'for sale' forum that I would buy but most are for Bank Tranfer payment and i'm just not keen on giving out Bank details either. I use paypal on ebay for small purchases and it seems to work ok for me. Cheques are on the way out though and soon we will have no option but to do everything on-line.

Writing someone a cheque gives them all the same info as a bank transfer though - your cheques will have your name, account number, and sort code printed on them. As a buyer you give more info writing a cheque than transferring money into the seller's account.

[Andeh13]

Check the address via googlemaps, talk to him on the phone, ask for pictures of the projector with a note in front with something you requested written on it & if all seems well, it probably is! What about meeting him half way and doing cash in hand? id rather drive 100miles and have the peace of mind personally.

[Whiternoise]

I don't know about anyone else, but if some anonymous bloke walked in off the street and asked my bank for my account number, and they gave it to him, I'd change banks. I'd be furious if they so much as admitted I had an account there without my permission.

I would also think that disclosing such information in that way would be an obvious breach of the Data Protection Act.

I meant ask the GUY

Not the bank

[TooNice]

The guy got back to me, and explained that he is not comfortable with revealing is A/C details which well, is understandable. He seems to favour a collection more than anything, so I guess I'll do that. I have spoken to him on the phone, I did get some pictures (minus the notes - I reckon that he didn't understand my instruction properly - but the date stamp of the file is relatively consistent with the email), and for most part I think that it should be genuine transaction.

But ye know, at the risk of sounding paranoid, I am actually more nervous about meeting someone in person for a transaction. I mean, the worst case that can happen with an online transaction gone wrong is a person running off with my money. The worst case that can happen in a face-to-face transaction.. is actually quite worse. Can anyone relate to this concern or am I the only one with this worry?