The ruling on dealing with Checks in selling Gold

Question :

What is the ruling on dealing with checks in selling gold if they are used for paying at the time of the sale, as some of the people who sell gold deal with checks due to fear for themselves and their cash that it may be stolen from them?

Answer:

It is not permissible to deal with checks in selling gold or silver. This is because checks are not money received. They are only promissory notes of exchange. The proof of this is that this person who took the check, if he loses it he will go back to the person who gave it to him (for repayment). If he had received money he would not go back to the buyer if he lost it. An explanation of this is that if a man bought some gold for cash and the salesman received the cash and took it to his place, but he lost it, he would not go back to the buyer (for repayment). However, if he took a check from the buyer and then took it to the bank to receive the money from the bank, but then he lost it, he would go back to the buyer for the money. This is a proof that the check is not truly receiving money, and since it is not a receipt of money, it is not correct to sell gold with it. This is because the Prophet commanded that the selling of gold and silver be hand to hand (i.e., payment on the spot). The only exception is if the bank verifies the check and the seller contacts the bank and says to them, "Hold the cash as a guarantee set aside for me." In this case, this is allowed. And Allâh knows best.

Source:
Ash-Shaykh Ibn 'Uthaimin
Fatawa Islamiyah, Vol. 4 Pages 407-408