What Happens If You Cash A Fake Check At Walmart in 2023? A Seller‘s Guide
As an ecommerce seller, checks may make up a portion of your income from customer payments or account transfers. However, with rising check fraud, you need to know how to spot fake checks and the strict consequences you could face for unknowingly depositing them at retailers like Walmart. This comprehensive guide will provide Amazon sellers a detailed look at Walmart‘s fraud detection policies, how to avoid check scams, and steps to take if you find yourself facing repayment demands or account reviews after depositing a bad check.
How Cashing Fake Checks Puts Your Amazon Account at Risk
If an Amazon seller cashes a fake check that is tied to their seller account in any way, it can potentially trigger increased account scrutiny or even suspensions from Amazon. Here are some key risks to be aware of:
Account reviews – If Amazon detects suspicious activity related to cashing fake checks, they may flag your account for additional review to check for deliberate fraud. This can cause major disruptions to selling.
Blocked payments – Amazon may freeze payouts issued if the funds are tied to a cashed fake check in your account. This halts your access to revenue.
Seller account suspension – In severe cases, Amazon may decide to suspend the seller account altogether pending further fraud investigation. This can be devastating for your business.
Banning – For repeat or egregious fake check policy violations, Amazon may decide to permanently ban you from selling on their marketplace. This is the worst case scenario.
Experts recommend being extremely cautious when accepting check payments to avoid this risk altogether. Thoroughly vet all checks, and if in doubt, don‘t deposit. It‘s better to lose one payment than your entire Amazon business.
Walmart‘s Stringent Check Cashing and Fraud Detection Process
Walmart stands as one of the largest check cashing providers in the U.S., handling around $27 billion annually. Their verification process includes:
ID Check – Customers must provide valid government-issued photo ID that matches the name on the check being cashed.
Associate Training – Walmart cashiers receive specialized training to spot signs of fraudulent checks and suspicious customer behavior.
Electronic Verification – Walmart runs every check through the TeleCheck or Certegy third-party verification systems to screen for counterfeits. This extensive database flags risks down to the individual check level.
No Handwritten Checks – Only professionally printed checks with key details like names, addresses, and bank info are accepted. Signatures can be handwritten.
Limited Check Types – Walmart restricts check cashing to payroll and personal checks made out to the individual cashing them. No third-party or temporary checks.
| Check Cashing Facts at Walmart | |
|---|---|
| Over 4,000 Walmart locations offer check cashing | |
| $27 billion in checks cashed annually | |
| 1.7 million checks processed weekly on average | |
| $5,000 max check amount accepted per day |
This robust multi-step process aims to detect 100% of fraudulent checks. But occasionally some do slip through, which brings serious penalties.
Consequences You Face for Cashing Bad Checks at Walmart
If you mistakenly cash a fake check at Walmart, here are the typical outcomes:
Repayment Demands – Walmart will require you to repay the full value of any bad check that is later identified as fraudulent, no matter the reason. This instantly negates any presumed value received.
Negative Credit Reporting – Failure to promptly repay Walmart‘s losses from the counterfeit check cashing may result in it being sent to collections or reported to credit bureaus as a black mark on your credit history.
Potential Prosecution – In some states, it is a felony to knowingly pass fake checks over a certain dollar amount. Walmart cooperates fully with authorities to prosecute deliberate check fraud in regions where allowed. Offenders can face criminal charges, fines, and jail time if convicted.
Civil Lawsuits – Beyond criminal charges, Walmart frequently pursues civil litigation against fake check scammers to recover losses exceeding repayment received. This adds hefty legal fees and court judgements.
Walmart Bans – Individuals confirmed to have cashed counterfeit checks will often be prohibited from shopping at Walmart stores or using any financial services.
While scam victims bear no criminal liability, they remain financially responsible for all fake check losses. Avoiding check fraud is imperative.
Top Check Scams Targeting Retailers and Sellers
Check scams are constantly evolving and growing more sophisticated. Here are some of the most common fake check ploys to beware of as a seller:
Fake Cashier‘s Checks
- Scammers create convincing counterfeit cashier’s checks with stolen bank routing and account numbers. These can pass visual inspections. Always call the bank to validate funds.
Mystery Shopper Scams
- Criminals pose as market researchers hiring “mystery shoppers” and mail them cashier’s checks to deposit. They instruct victims to wire back portions and keep the rest as “pay”. The checks are fake, but wires can’t be reversed.
Overpayment Scams
- Fraudsters buy merchandise and “accidentally” overpay with a bad check. They convince the seller to refund the overage before the check bounces. This nets them free cash. Never issue refunds until checks 100% clear.
Lottery/Sweepstakes Scams
- Victims are told they “won” a prize and are mailed a fake check to cover supposed taxes and fees to release winnings. Scammers pocket the money while the check eventually bounces. Legit sweepstakes never require you to pay fees upfront.
Top States for Fake Check Fraud
While check fraud occurs nationwide, some states see higher rates based on banking activity and fraud reporting. Here are the top 10 states for reported counterfeit check losses:
| Rank | State | Est. 2021 Losses |
|---|---|---|
| 1 | California | $94 million |
| 2 | Florida | $83 million |
| 3 | Texas | $76 million |
| 4 | New York | $71 million |
| 5 | Illinois | $49 million |
| 6 | Pennsylvania | $47 million |
| 7 | New Jersey | $43 million |
| 8 | Georgia | $40 million |
| 9 | Virginia | $38 million |
| 10 | Connecticut | $36 million |
(Source: ABA Deposit Account Fraud Survey)
Sellers in these states need to exert extra caution when accepting checks. Also closely monitor checks received from individuals or businesses located in these regions.
Why Does Walmart Refuse to Cash Certain Checks?
Beyond obvious fakes, there are a number of other reasons Walmart may deny cashing a check that are important for sellers to be aware of:
No valid matching photo ID – Expired licenses or passports will be rejected. Make sure your ID reflects any name changes.
High-risk flags – Checks that trigger fraud filters, such as newly opened accounts or frequent overdrafts, are seen as too risky to cash.
Inactive accounts – Checks drawn on dormant, closed, or invalid accounts will be declined.
Suspicious check writing – Odd signatures, visible alterations, or written in different handwriting can lead to refused checks.
Doubts about customer – Nervousness, confusion, arguments, or a documented history of prior fraud will raise red flags.
Refused electronic verification – If TeleCheck or Certegy cannot verify a check, Walmart will deny cashing it.
Having a check refused due to mistakes like an expired ID is annoying but not dire. However, frequent rejections signal major issues with your finances or history that require attention before attempting to cash additional checks.
Expert Tips to Safely Cash Amazon Checks and Avoid Scams
As an Amazon seller, here are my top recommended tips to cash your Amazon payout and other checks safely and avoid falling victim to fake check scams:
Immediately notify Amazon if you suspect any association between cashed checks and your seller account to be fraudulent. Proactively disclose issues.
If accepting large retailer checks like Walmart, have them directly issue a certified cashier’s check instead. This guarantees legitimacy.
Cross-reference customer names on checks against the KYC info in your account before depositing to spot mismatches.
Never accept checks for more than the exact payment amount owed. Major red flag of overpayment scams.
Only deposit Amazon disbursement checks into a separate business account – never your personal account mix funds.
Use mobile check deposit sparingly due to higher fraud risks with remote deposits that lack human interaction and verification.
For high value checks, visit the originating bank branch to cash in-person teller with ID for an added layer of security. Don’t just use ATMs.
Proactively sign up for check fraud monitoring services to act quickly in case of identity theft.
Document every cash deposit and retained copy of cashed checks for your records in the event Amazon reviews your account activity.
Key Takeaways on Cashing Checks Safely and Avoiding Fake Check Scams
To summarize, as an Amazon seller here are the key lessons for safely cashing checks and avoiding devastating fake check scams:
Be extremely wary of checks from strangers, won contests, overseas, etc. Only accept trusted known checks.
If U.S. retail giants like Walmart with billions in resources can‘t prevent all fraud, no seller can either. Stay vigilant.
Follow all ID, documentation, signature, and mobile deposit requirements to validate check legitimacy. No shortcuts.
Never accept or deposit checks listing your business name as payee – only personal or FBA named checks.
Understand the strict liabilities if you accidentally pass a fake check, including account reviews, selling privileges removal, and repayment.
Learn the common check scams targeting sellers and signs of counterfeit checks. But also expect new scam variants.
Report any suspicious activity related to checks to Amazon early and document your due diligence. Don‘t wait for them to find it first.
Equipped with the insights in this guide, sellers can feel empowered to take smart precautions against check fraud while seamlessly receiving valid check payments. Just remember, if you have doubts about a check, simply don‘t deposit it. It‘s not worth the risk of devastating consequences to you and your Amazon business. Play it safe and avoid fake checks outright through education and vigilance.
