Stop Customers From Passing Bad Checks

There are no fool-proof ways to prevent bad checks in your business, other than not accepting checks at all. If your losses from "not sufficient funds" or other fraudulent checks are very high, this may be an option. However, the following strategies can do a lot to minimize losses.

DO	DON'T
Ask for a government-issued photo ID, such as a military ID or a driver's license. Write down information from the ID onto the back of the check. Have the clerk initial the back of the check. WHY? Watch the person sign the check in front of you. Post signs in your business explaining your check cashing policy. WHY?	Accept starter checks. Accept out-of-town and especially out-of-state checks. Accept second-party checks.

Check out this short article by the Better Business Bureau, "Check Fraud Against Businesses Proliferates." It explains many of these tips in more detail.