Is there any risk to selling BTC via cash bank deposit?

[meatmeat]

I've bought BTC a few times myself on localbitcoins.com via cash deposit at bank.

Usually you are required a picture of the deposit receipt w the date, write no refunds on it, etc.

I may want to sell some BTC in the future, and I like the idea of selling via this way, but I want to make sure there is no way a buyer could reverse it. I could use circle, but they have a limit of $300 a week, and I used to use Coinbase for all my sales, but they closed my account because I was sending BTC between Coinbase and a poker site (this is why I am looking for a new way to sell).

So if someone deposits cash into my bank account, and I log in to online banking and can confirm the money is indeed there, and they provide a pic of the receipt, that should be it, right? I can't think of any way they could do anything after that, but just want to confirm.

Thanks

[1715129921]

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[1715129921]

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[1715129921]

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[Quickseller]

Yes, the buyer could deposit a check that gets returned. You may not notice that they deposit a check and you release the Bitcoin despite you not receiving cash. Or you could notice that a check was deposited, you don't release the Bitcoin but you incur bank fees and risk negative action against your bank account (your bank potentially closing your account).

[1aguar]

Typically, a trader would call the branch where the deposit was made to confirm that the deposit was made in cash and will not be reversed. The bank is actually liable if the deposit is reversed, but they will rarely if ever admit their error and will probably shut down your account instead of refunding your deposit. That is why it is good to call the branch and verify with the teller that a reversal is not possible.

[cptdome1]

Typically, a trader would call the branch where the deposit was made to confirm that the deposit was made in cash and will not be reversed. The bank is actually liable if the deposit is reversed, but they will rarely if ever admit their error and will probably shut down your account instead of refunding your deposit. That is why it is good to call the branch and verify with the teller that a reversal is not possible.

Yeah, definitely call the branch and speak with a manager or teller to confirm it cannot be reversed.  There have been cases where a buyer would go back to the branch after receiving the BTC and claim they deposited it into the wrong account or whatever other reason they would come up with to ask the teller to refund the cash out of the account.

[meatmeat]

Yes, the buyer could deposit a check that gets returned. You may not notice that they deposit a check and you release the Bitcoin despite you not receiving cash. Or you could notice that a check was deposited, you don't release the Bitcoin but you incur bank fees and risk negative action against your bank account (your bank potentially closing your account).

I can tell in online banking if it was a check or not that was deposited...so assuming I can confirm it was cash, I should be good then?

[gentlemand]

How confident are you that your bank isn't going to start freaking out? Lots of traders fall out of favour with their bank if volumes rack up.

Google this -  site:localbitcoins.com cash deposit scam

And see what others have experienced. I'm sure there's no end of creativity from the scammers.

[Quickseller]

Yes, the buyer could deposit a check that gets returned. You may not notice that they deposit a check and you release the Bitcoin despite you not receiving cash. Or you could notice that a check was deposited, you don't release the Bitcoin but you incur bank fees and risk negative action against your bank account (your bank potentially closing your account).

I can tell in online banking if it was a check or not that was deposited...so assuming I can confirm it was cash, I should be good then?

If you can confirm it was a cash deposit then you should be reasonably safe from getting scammed. However I have read reports that cash deposits have been able to get reversed, although I do not know what it takes to reverse a cash deposit (most likely social engineering) so it would probably be best to have the buyer wait until the bank is closed on the West Coast prior to releasing the BTC.

As I mentioned previously, you are still at risk of someone trying to scam you by depositing a check, hoping that you will not notice, and even if you do notice then you will likely incur bank fees when the check is returned and there is a possibility that your bank will start holding your checks for longer then they did in the past and/or close your account

[DaddyMonsi]

Yes, the buyer could deposit a check that gets returned. You may not notice that they deposit a check and you release the Bitcoin despite you not receiving cash. Or you could notice that a check was deposited, you don't release the Bitcoin but you incur bank fees and risk negative action against your bank account (your bank potentially closing your account).

Isn't it that when a check is deposited it's not going to reflect as Available Balance yet, but instead as its like a floating balance or it depends on what Bank rules and Country.

[Quickseller]

Yes, the buyer could deposit a check that gets returned. You may not notice that they deposit a check and you release the Bitcoin despite you not receiving cash. Or you could notice that a check was deposited, you don't release the Bitcoin but you incur bank fees and risk negative action against your bank account (your bank potentially closing your account).

Isn't it that when a check is deposited it's not going to reflect as Available Balance yet, but instead as its like a floating balance or it depends on what Bank rules and Country.

Different banks display different types of deposits differently. It also depends on the check, for example, if you ask then the bank must give you the first $5,000 of a cashier's check deposit available right away unless they have a reasonable suspicion that the check will not be honored by the paying bank.

[meatmeat]

Thanks for the replies guys.

Ugh...f-ing coinbase...was sooo easy with them.

[gentlemand]

Get yourself on Gemini or Itbit if you want to sell. No premiums but at least you know your money will arrive.

[chanlance]

with all this said what is the safest way to sell bitcoins....i personally thought western union is easy  as you can track your transfer

[Mickeyb]

How confident are you that your bank isn't going to start freaking out? Lots of traders fall out of favour with their bank if volumes rack up.

Google this -  site:localbitcoins.com cash deposit scam

And see what others have experienced. I'm sure there's no end of creativity from the scammers.

Exactly this! It all depends on your bank. How good it is, how much they value you as a customer, how long have you been a customer there and what's their stance on Bitcoin?

Even a bank wire transfer can be reversed. All the customer that executed it needs to go to their bank and say that there was a misuse of their online banking for example and that they didn't send the wire transfer. With today's online banking, this is very doable. If this is to happen, then it all depends which side will your bank take!

It would be the best if you would have someone to watch your back in a bank. To categorically refuse a chargeback tries because they would know that you are selling Bitcoins, they would support this and they would trust you!

[Spoetnik]

more risky yeah.. i have done it ok with LBC
Almost always i used Localbitcoins interac eTransfer.
i think that is safest.
Don't release the funds till you have cash in hand.

edit:
And never use Paypal .

[blackmachinegun]

I've bought BTC a few times myself on localbitcoins.com via cash deposit at bank.

Usually you are required a picture of the deposit receipt w the date, write no refunds on it, etc.

I may want to sell some BTC in the future, and I like the idea of selling via this way, but I want to make sure there is no way a buyer could reverse it. I could use circle, but they have a limit of $300 a week, and I used to use Coinbase for all my sales, but they closed my account because I was sending BTC between Coinbase and a poker site (this is why I am looking for a new way to sell).

So if someone deposits cash into my bank account, and I log in to online banking and can confirm the money is indeed there, and they provide a pic of the receipt, that should be it, right? I can't think of any way they could do anything after that, but just want to confirm.

Thanks

that was a general transaction,it happen in almost every bank and every exchange,it depend you trust buyer and exchange,i just suggest you to make sure that the bank is really commercial and popular,also you have a contact of that bank..and about exchange,it must be popular and trusted by many bitcoiner.
lets hopeno more scammer,its make some bitcoiner leave,its make me annoy..

[odolvlobo]

There are two main risks to selling with cash bank deposits. The first is that the cash deposits can sometimes be reversed. The second is a scam where the scammer has someone unknowingly deposit money into your account. In that case, you generally lose the money and the bitcoins.

[shanerc563]

In order to do this, you need to make sure that the person making the deposit, is depositing cash only.  Any other form of deposit could be bad and/or returned to the depositor with a simple complaint phone call.  It is always best to deal with cash.