What does “Reference Check” mean?

A reference check means checking someone's reputation by asking dealers who have traded with them. Before sending money or a watch to someone new, a dealer asks for the names of people they have done business with, then contacts those people to confirm the trader paid on time, described watches honestly and handled problems fairly.

In a trade where watches and large payments often move between people who have never met, reference checks are one of the main defences against fraud. A good check speaks to more than one reference, ideally people you already know rather than only names supplied by the person being checked, and asks about recent deals of a similar size. It is also sensible to confirm the basics: that the company name, address and the holder of the bank account all match the person you are dealing with.

Example: 'Happy to deal, just need a reference check first. Who have you traded with recently?'