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Checklist: Top 12 Ways to Avoid Taking Bad Checks Completely

Avoiding Bad Checks is complex sometimes. Here's the top 12 ways that can guide you to avoid taking bad checks and improve your business efficiency

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About this course

description
lessonOverview

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      
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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. https://academy.highako.com/top-seven-risk-factors-of-fraud-for-web-based-orders  
Deductions Resolution 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. https://academy.highako.com/decoding-trade-credit-insurance-risks-concerns-and-selecting-the-right-plan  

 

About this course

description
lessonOverview

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. https://academy.highako.com/top-seven-risk-factors-of-fraud-for-web-based-orders  
Deductions Resolution 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. https://academy.highako.com/decoding-trade-credit-insurance-risks-concerns-and-selecting-the-right-plan