Follow these 12 procedures to avoid taking bad checks.
Checklist: 12 Ways to Avoid Taking Bad Checks
Pass
Fail
Procedure Being Checked
Establish a check acceptance policy detailing acceptable forms of ID, required information and dollar limits. Make no exceptions.
When accepting a check, make sure the name, address and telephone number are printed on the check and the written and numeral amounts are the same.
Pay attention to the feel of the check. Most check paper has about the same weight and texture.
Watch the check writer sign the check and have the customer print the name below if it is illegible.
Compare the signature, photo and physical description on the ID with that of the check writer. Does the customer you see look like his or her ID?
Check the drivers license itself. It should be smooth all over with no ridges that indicate an alteration or modification. Verify that the ID is still valid.
Ninety percent of returned checks have low check numbers (100-500). While low check numbers indicate a recently opened account and a potentially risky check, particularly for business or DBA (doing business as) accounts, they are not necessarily a risk.
Also useful is the account's opening date (month and year) usually indicated by the four numbers to the side of the account holder's name and address on the printed check.
Do not accept second- or third-party checks.
The four digits following the magnetic ink character recognition (MICR) number at the bottom of the check should match the 4-digit number at the right hand side of the check.
All checks, except government checks, should have a perforation along one side of the check.
It is possible to call the financial institution to confirm if funds are available before honoring the check. But that is no guarantee funds will be available when the check is deposited.
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Credit Today
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KPIs and Reporting
Checklist: Top Seven Risk Factors of Fraud For Web-based Orders
Here's the list of factors highlighting the ecommerce or online frauds. Read this to understand the financial risk in web based orders.
Decoding Trade Credit Insurance: Risks, Concerns and Selecting the Right Plan
This course will help you evaluate credit insurance plans that suit your company’s needs to mitigate risks, reduce bad debt write-offs and lower your past dues.
Follow these 12 procedures to avoid taking bad checks.
Checklist: 12 Ways to Avoid Taking Bad Checks
Pass
Fail
Procedure Being Checked
Establish a check acceptance policy detailing acceptable forms of ID, required information and dollar limits. Make no exceptions.
When accepting a check, make sure the name, address and telephone number are printed on the check and the written and numeral amounts are the same.
Pay attention to the feel of the check. Most check paper has about the same weight and texture.
Watch the check writer sign the check and have the customer print the name below if it is illegible.
Compare the signature, photo and physical description on the ID with that of the check writer. Does the customer you see look like his or her ID?
Check the drivers license itself. It should be smooth all over with no ridges that indicate an alteration or modification. Verify that the ID is still valid.
Ninety percent of returned checks have low check numbers (100-500). While low check numbers indicate a recently opened account and a potentially risky check, particularly for business or DBA (doing business as) accounts, they are not necessarily a risk.
Also useful is the account's opening date (month and year) usually indicated by the four numbers to the side of the account holder's name and address on the printed check.
Do not accept second- or third-party checks.
The four digits following the magnetic ink character recognition (MICR) number at the bottom of the check should match the 4-digit number at the right hand side of the check.
All checks, except government checks, should have a perforation along one side of the check.
It is possible to call the financial institution to confirm if funds are available before honoring the check. But that is no guarantee funds will be available when the check is deposited.
instructor
name
title
image
description
Ins
Credit Today
www.credittoday.net
related
image
tag
title
description
link
contentType
KPIs and Reporting
Checklist: Top Seven Risk Factors of Fraud For Web-based Orders
Here's the list of factors highlighting the ecommerce or online frauds. Read this to understand the financial risk in web based orders.
Decoding Trade Credit Insurance: Risks, Concerns and Selecting the Right Plan
This course will help you evaluate credit insurance plans that suit your company’s needs to mitigate risks, reduce bad debt write-offs and lower your past dues.
