NFIB

8 Tips to Spot Bad Checks
02/ 04/ 2003

American consumers write approximately 1.2 million bad checks every day, according to the Nilson Report. That translates into $55.8 million in lost daily payments, the brunt of which is borne by retailers. Don't let your business be a victim. In addition to using a check-verification service, train your employees to spot bad checks. Here's how.

1. Verify the date.

2. Ensure that the check is made out to the name of your company.

3. Match the amount of the check in numbers to the written amount.

4. Reject low-number checks (under 300), starter checks or checks that are not printed with the name of the account holder.

5. Verify that the bank transit number on the bottom of the check has nine digits surrounded on either side with an upright dash and two dots.

6. Check the paper on which the check is printed. A color photocopy will have shiny, raised numbers.

7. A legitimate check should have at least one perforated edge.

8. If the check has no street address or phone number, ask for them. Call the number to make sure it's legitimate.

Source: Checkcare Systems

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This article originally appeared in the February/March 2003 issue of MyBusiness magazine.

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