9. Why canít my bank or credit union or the check cashing service tell if the check or money order is good?
When you deposit a check or money order, federal law requires you to have access to the funds within one to five days, but the actual processing takes longer.
Banks, credit unions, and check cashing services accept checks and money orders based on your identification. They don’t have any information about the source.
Because the check or money order goes back to the source, it can take a while for counterfeits to be discovered. For instance, if a check seems to come from a business account, the business may not learn about it until it appears on its next bank statement.
You’re responsible because you’re in the best position to determine the risk of accepting the check or money order – you dealt with the person who gave it to you.