Scenario: Buyer informs seller that
he would like to pay for purchase with a recently issued company check. The company
check's dollar amount is much greater than the equipment amount, but the buyer trusts
that the seller will refund the difference after the check clears. The check appears
to clear seller's bank, and seller ships equipment along with money order. Therefore
seller loses the equipment, money order, and the full amount of the check.
Protection: Do not accept
third-party checks under any circumstances. However, if you do accept checks as
a form of payment, and the dollar amount exceeds equipment price, wait for the check
to be paid rather than cleared. Sellers should consult their bank representatives
for terms of paid and cleared check.