How to Protect Yourself From Bounced Checks
- 1). Develop a check-acceptance procedure. Accepting checks is a convenience offered your clients or customers -- not a requirement. As such, you may decide under what conditions you will accept checks. For instance, you may decide that a state-issued identification is required or that checks will not be accepted for purchases more than a pre-determined amount.
- 2). Educate your employees or staff regarding the check-acceptance policy. Make sure that all in a position to authorize a check understands under what conditions they may accept the check.
- 3). Inspect the check itself when one is presented. Make sure the check appears to be valid on its face. Check the signature on the check against the signature on the identification presented. Make sure the written amount matches the numerical amount.
- 4). Use a check-verification service. There are a number of fee-based services that will run the checking account number and/or the identification of the check writer to determine if there is a history associated with the account of checks that are returned for non-sufficient funds.
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