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
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