Check Acceptance Procedures

Accept only personal or company checks made payable to the seller.

Inspect checks to determine:

1. No postdated or outdated checks

2. Check is written in ink

3. No erasures or corrections

4. Written amount and numerical amounts are the same

5. Signature compares with identification provided

6. No unprinted starter checks or beginning number series used

7. Check is for exact amount of purchase

Require proper and valid identification such as driver's license, credit cards, insurance cards.

Out-of-town banks should raise a question as to why the customer is making purchase here.

Call bank to verify if amount exceeds pre-established limit set.

Be concerned if customer is unconcerned about price.

(If it is a bogus check, the passer could care less what is charged.)

When a check is determined to be bad:

For insufficient funds:

1. Re-deposit

2. Notify writer by registered mail

3. Assign to collection agency if returned a second time

For closed accounts and forgeries:

1. Try to identify the check passer

2. Maintain a list of all names and aliases on bad checks

3. Exchange names with other distributors who are likely to get hit

4. Watch for returns and requests for cash refunds for merchandise purchased with bad checks. (Always note identifying information on sales tickets to be compared to bad check list if a return is attempted).

Prosecute when identification is made.

Notify legal authorities.

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