Guide to Creating a Check Acceptance Policy

Confirm check-writer identities

One of the first lines of defense in check fraud is to make sure you verify the identification of check writers. The rule of thumb should always be no checks accepted without a valid photo ID.

I recommend: Take the guesswork out of determining if a photo ID is valid or a fake with an ID scanner.

Choose the right equipment

Technology allows you to verify that your customer has a valid checking account with available funds within seconds. Set up your point of sale systems with check scanners to transmit account information electronically to check verification systems.

I recommend: DiscountCreditCardMachine.com offers several check readers for under $100. Keep in mind that most check verification companies offer discounted or free equipment when you sign a contract for their services.

Verify funds availability

Check verification companies instantaneously provide authorization when you scan a check through the reader. The systems work much like credit card authorizations by confirming that the checking account is open, in good standing and has available funds.

I recommend: Learn how check verification works and how to choose a verification company at MerchantSeek.com. Some verification services such as TeleCheck and National Check Trust also offer guarantees to repay bad check funds that they approved if you sign up for the extra service.

Accept checks online

Accepting checks online can seem like a risky venture since the customer isn't in your presence with a photo ID. But today's technology has found a way for you to accept payments in the form of checks with minimal risk.

I recommend: By adding html scripts to your website from online check processors, you can accept checks over the Internet in printed form to your bank, or automated clearing house (ACH) transactions. PayByCheck and PayByWeb offer the service.

Train your employees

Make sure your entire staff knows your check acceptance policy and follows it consistently.

I recommend: Incorporate tips for accepting checks from CheckProgram.com into your check acceptance policy and make sure it's available at each cash register or point of sale for easy reference.