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.