Accept Current Date Only Insist that checks are written with today’ s date on them only. If a date in the future is used, do not accept the check.
Check Identification of Check Writer I know you already do this, but if you don’ t, please start. Verifying a check writer’ s identification helps you make sure that the person handing you the check is the same person who owns the account. You should also check the address on the ID and photo copy the ID to see if it matches the address on the check. If the addresses do not match, it does not mean you’ re getting a bad check, but then you can ask the client more detailed questions.
Review the Signatures Insist that all checks are signed at your place of business. Compare that signature to the signature on the ID to make sure you’ re dealing with the same person. You want to actually see the person sign because a thief can grab a legitimately signed check, alter it, and bring it into your business.
Verify Funds To do so, contact the bank that the check is drawn on and ask to verify funds. Some banks, do not provide any information, others will tell you if there is currently enough money in the account to cover the check.
Post A Bad-Check Policy Warn your customers of the stiff penalties that await them should they write a check that bounces. For example, a $ 100 processing fee plus the amount of the check. This can serve as a deterrent to would-be bad check writers. The best protection against bad checks is to think through a policy before it happens. Figure out your company’ s procedures so you will be prepared and your employees will know what to do.
Insure Your Business Fraud does happen; however, you can still seek to cover your damages by purchasing an insurance policy that protects you against any losses that you may incur from crime or fraud. Likewise, find out what your bank is willing to do to help you out if your business account is compromised.
Melissa Thum, President Thum Insurance Agency, LLC 3140 3 Mile Rd NE, Grand Rapids, MI 49525 P 616-957-2400- F 616-957-1204 melissa @ thuminsurance. com www. thuminsurance. com
www. natda. org NATDA Magazine 67