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Scorpio

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Guys,

We all know and use checks, some more than others.

Talking with dealers, this check thing has become a huge problem, even the electronic type.

Anytime you hand a check, or mail one in to the utility company, your info is at risk. They have your name, address, bank routing, and acct number. Whomever it is.

With that information, and that alone, they can create a metals acct and order metals. Then if they can bluff their way thru, the metals are sent unless someone is proactive as heck. The person who owns the acct, or the metal dealer.

This is why some dealers have instituted what seems to be draconian policies at times. The long wait periods, the requiring phone numbers, all the above. They are trying to protect themselves from sending out the metal, then getting a claim later, where they are then out the metal and the dough.

Also talking with them, they would absolutely prefer to go electronic transaction, but the fees to do so are usurious. Anyone who clears cards knows what I mean. They are thieves pure and simple making a vig off your business and for doing exactly nothing other than managing a transaction between a buyer and a seller.

With the metals markets being such low margin, there is no room to 'eat' these fees. But, on the other side of that, the transactional costs for someone clearing anything in quantity and size ranges from 2-2.5% of the transaction. A GAE at $1200 cash should then be $1230 (+$30 clearing fee). What I am seeing by dealers is around $50 per. So they are using that as a margin extender.

To get back on track though, many times dealers aren't so much worried about the bounced check, as they have that covered by time, they are extremely worried about the fraud side of the ledger.
 

gringott

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Have never seen anyone ship anything until a paper check clears. They have been around quite a long time, all my life anyway. Credit card "information" theft is IMHO much more prevalent than paper check information.
 

Mujahideen

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As a side note, I never use checks in the first place, money orders work fine for me.

But in the event that you need to use check or debit debit card, have those accounts separated from your main. Have an account that you use only for spending, and only put the amount of money that you will spend on there.

That only works if your bank won't overdraft you.
 

Thecrensh

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Why not use a bank wire instead of either? Wouldn't that be a safer method??
 

Bigjon

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Why not use Bitcoin?
Fees almost non-existent, transfer instantaneously.

Are there any dealers who use Bitcoin?
 

nickndfl

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I write payroll checks, pay my accountant with a check and pay the guy who cuts the yard. Everything else is CC or transfer. That can be a pain too because CCs are not so perfect and banks in general are not to be trusted. Their customer service is does not always have their customers best interest in mind.
 

platinumdude

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Why not use Bitcoin?
Fees almost non-existent, transfer instantaneously.

Are there any dealers who use Bitcoin?

Provident does bitcoin, but like where a check is given that 4% cash discount, bitcoin is 3%. But they do process it right away instead of a hold like a check.
 

Scorpio

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bank wires are cost prohibitive for small lots,

nickfl conceded that electronic transfers are useful, and I use them frequently as well.

the post was meant as a heads up why dealers are becoming extra cautious re anything. Sending a paper check to them is covered every which way from Sunday, and the only other cost effective method of payment is electronic transfer. Advantage of electronic is a compression of time order to delivery. Wires cost premium ($15), cc's cost premium (2.5% +).
 

Usury

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Scorpio, perhaps for orders from "new" customers, but for established customers, using established accounts and shipping to the same address, where's the fraud risk?
 

gringott

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They seem to not trust anyone, I would guess with good reason.