Fake check overpayments: a small business checklist

A buyer sends a check for too much, then asks you to refund the extra amount or pay a shipper. The story may sound reasonable, and the funds may appear in your balance. That does not mean the check is valid.

Why the balance can be misleading

Banks can make deposited funds available before they finish determining whether a check is legitimate. If the check is later returned, the deposit can be removed while the money you sent to the scammer is already gone.

Warning signs

• The buyer cannot meet or inspect the item.
• The check is higher than the sale price.
• You are asked to pay a third party.
• The buyer wants a refund through wire transfer, gift card, crypto, or a payment app.
• The buyer creates urgency before the check can be verified.

A safer sales process

1. Set the exact price and accepted payment methods in writing.
2. Reject any overpayment instead of correcting it with a refund.
3. Talk to your bank using a trusted contact before relying on a check.
4. For high-value online sales, consider a reputable escrow or marketplace payment service.
5. Train staff to escalate unusual payment requests.