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.