Check clearing time?

Question

How long does it take for a personal check to clear? I keep getting different answers from differert people in the banking industry. I sell on ebay and was taken by a bad check. I checked with my bank after 4 days and they told me the check was cleared and the funds were availible.so I sent out the ebay item. About a week later I received a letter from my bank saying the check was retuned. I called my bank again and they said a check is not truly cleared until the the issuing bank receives the original copy of the check. I was told this time to hold all personal checks for ten business days. This causes problems as a seller because customers tell me after 3 days that thier check has cleared because the funds are gone from their bank. I check and the funds are actually availible for me at my back. So why do I have to wait another 7 business days? Can anyone out the explain the process of personal check clearing to me?

Answer 1

The bank information is correct. Congress passed a law a couple of years ago that allows banks to electronically transfer funds within 1-3 days based on check information. However, the transaction is not final at that point. All you can do is either wait 10 days each time or take a chance that some checks may not clear. I would wait for large sums, but not for small dollar checks.  

Answer 2

If yuu're selling on e-bay, you should request that people pay with money orders or a cashier's check.  That way the funds will be available to you immediately.  Check clearing policies vary from bank to bank, however, 7 to 10 business days is about average.   If you don't want to get burned by bounced checks, stop accepting personal checks as payment.