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Tips to Reduce Bad Checks

Look for these factors before accepting a check...

1. Checkwriter's name, address and phone number are imprinted on the check
2. The check is written at the point-of-purchase by the check writer.
3. Make sure the checkwriter signs the check in your presence.
4. Compare the checkwriter's signature with the signature on their picture ID
5. Proper photo identification.
   
   • Ask for a driver's license or other photo ID. If the ID appears to be altered, ask for another form of ID
   • Compare the photo with the person writing the check. If they do not match, be suspicious.
   • Write ID information such as license number, and date of birth on the check. This will help find the checkwriter if the check is returned.
   • A credit card number can be used as a form of ID to compare signatures, but it is of limited value because there is no photo. Some states do not allow you to write down a credit card number with regard to accepting a check.
6. Telephone number.
   
   • Request a home telephone number if it is not imprinted on the check.
   • Request a work telephone number at which they can be reached.
7. Accept a check only if checkwriter's address is imprinted. Physical address alone and P.O. boxes should raise suspicion.

Ways to avoid taking bad checks...

1. Do not take any check or person for granted.
   
   • Ask for and obtain a photo ID.
2. Don't accept excuses for not having a proper photo ID.
3. Do not become distracted by the checkwriter or others who may be rushing you.
4. Don't accept pre-written personal checks. Assure they are written at the point-of-purchase.
5. Write the checkwriter's information legibly on the check.
6. Do not accept checks which do not have the check writer's personal information printed on the check: name, address, telephone.
7. Be aware of checks with low a low check number (under 100, under 500).
8. Do not accept unsigned checks.
9. Accept only checks written to you or your business as payee. Do not accept checks written to another, and endorsed over to you.

Potential risk areas to look for...

1. No photo ID available.
2. Checks drawn on out of state banks or distant locations.
3. Checks for more than the amount of purchase.
4. Two-party, payroll or government checks.
5. Check numbers which are handwritten, stamped or typed.
6. Checks made out before the point-of-sale.
7. Address on photo ID and imprinted on check do not match.
8. Checks with little or no personal, pre-printed information.
9. Loose checks; not bound in a check book or register.
10. Checks not recorded in a check register.
11. Checks with a low check number.

Spotting a forged or counterfeit check...

1. If the top or side of the check is smooth and not perforated on a personal check.
2. Any difference or misalignment of type anywhere on the check.
3. Printing on the check appears faint, smeared or overwritten.
4. Photo identification does not match the person or information on the check.

If you are suspicious:

1. Do not accept the check. Ask for another form of payment.
2. Call the checkwriter's bank or financial institution to verify the account holder and if funds are available.
3. Report any suspicious activity to a law enforcement agency.