Tips for Accepting Checks.
The best way to reduce your losses is to avoid taking bad checks from the start. The following tips are suggestions to help you establish good procedures for accepting checks.
Institute
a check acceptance policy.
A clearly posted check acceptance policy
for your employees and customers can go a long way toward reducing your
losses. Policies should state which types of checks can and cannot be
accepted and include the consequences to bad check writers.
Confirm
the identity of the check writer.
All I.D. can be forged. The most reliable form of I.D. is that
which contains a photo and a physical description. Take the I.D. in hand
and write the I.D. number, birth date, address and other descriptive data
on the front of the check. Ask questions. If the I.D. does not belong
to the person writing the check, they may be thrown off guard.
Whenever
possible avoid accepting checks written on a new account.
Approximately 85% of all bad checks are
written on accounts only a few months old and bear check numbers between
101 and 150. Use caution. Do not accept counter drafts.
The
signature should be legible and signed in the presence of the individual
accepting the check.
Do NOT accept previously signed checks.
For a company check, it is vital that the signature is legible. If not,
print the individual's name on the front of the check.
The
complete address should be imprinted on the check.
Require a street address, in addition to a P.O. Box number.
Obtain a phone number as well.
Accept
checks only written with today's date.
Pre- or post-dated checks are
not accepted in the Bad Check Restitution Program and cannot typically
be criminally prosecuted. This restricts any recourse you may have against
the check writer if your own collection attempts fail.
Make
sure written amounts and numbers correspond.
Banks will not honor checks with discrepancies
between written amounts and numbers.
Avoid accepting checks drawn on an out-of-state bank.
REMEMBER,
you are not required to accept a check from anyone.
If you feel uncomfortable or suspicious, trust your intuition!
Ask for another form of payment.