Why do banks place holds on credit card courtesy checks?
I used to work at a bank. The reason the bank I worked at did it was because the credit card company the checks are drawn off of can be returned to the bank up to 3 years after it was deposited, which causes the bank to take the loss. The credit card companies can take that long to decide not to honor the check, while the bank has already given you the money for it. They do it to protect themselves from losses and the customer from fraud as well.
