About $8 million dollars worth of bad checks are passed off at service stations every year. A sound check acceptance policy is the best way to reduce your risk of getting burned.

Don’t treat checks like money. When you accept a check, think of the purchase as a credit transaction. For example, verify the check amount with a electronic check guarantee service.

Shiny code numbers. On a legitimate check, coding is in dull, non-reflecting magnetic ink.

4 smooth sides. Print-your-own check forgers never use perforations along one side.

Avoid checks with low numbers. About 90% of all bad checks are from accounts less than a year old. Be suspicious of checks numbered 100-150 or 1000-1050.

Spotting bad checks is not ’t always easy. Here are some tips to help you and your employees spot potentially bad checks.

• About 90% of bad checks are numbered 101 to 499, indicating a new account. This is the most common form of bad check writing we see with returned checks to our clients.
• Spotting forged checks. Legitimate checks have at least one perforated edge. Most forgeries are cut outs.
• When a check is too old to cash. Checks dated more than six months ago are usually not cashable, no matter how much money the issuer has in the bank.
• If the amounts differ. If the amount written on a check in words is different from the amount written in numbers, the bank will pay the sum in words.
• Undated checks. When you receive a check with the date missing, it’s legal to fill in a date close to when you receive it. Invalid: To predate or postdate a check. Such action might constitute a criminal act.

Source: Morgan Guarantee Trust Company

Check Acceptance Guidelines

1) Beware of strangers.

2) Take checks for amount of purchase only.

3) Ask for more than one kind of identification.

4) Compare handwriting on check with I.D. handwriting.

5) Compare description with I.D. Description.

6) Do not accept checks under these circumstances:

Lack of two identifications.

Counter checks. Second party checks.

Where you feel customer may stop payment.

That are illegible.

Where the date or amount has been tampered with.

That are post-dated.

That are stale-dated.

That are out of town or immediate area.

7) Be especially careful of all checks numbered 101- 499. 90% of all bad checks are in those number sequences.

8) Don't forget that you are not a bank for your customers. We do not cash checks.

9) Don't let the customer rush you from your normal check acceptance.

10) "Proof" read the check to verify numbered dollar amount and handwritten dollar amount are the same. Also look to verify that the check has been signed.