Check fraud is a serious threat to many businesses. Accepting a fraudulent check is a sure way of losing money, and it is now easier than ever for criminals to create fake checks, due to the rapid advances in computer and printing technology. It is estimated that the retail industry is now losing 12 billion dollars a year because of check fraud.
In order to avoid falling victim to check fraud, it is important to be able to recognize a fake or fraudulent check. This will protect against crimes involving fake checks. Genuine checks may sometimes be used to commit check fraud, so it is important to ask for identification from the customer as well as making sure that they are handing over a real check. Insufficient check fraud, or a bounced check, may be unintentional. As long as the customer’s contact details have been recorded, it may be possible to obtain payment from them.
An acceptable form of ID should include the customer’s name, address and phone number. These details should match those which are imprinted on their check. The expiry date on the ID should also be checked. Details from the ID, such as the issuing state or driver’s license number, should be written on the back of the check. Credit card numbers should not be recorded, as this is illegal in some states.
The check should be examined to make sure that all the necessary details have been filled in correctly, including the date, the written and numerical figures and the signature. A genuine check should include all of the required information, printed in the same ink. There should be no signs of tampering, such as different types of ink or font, or stains and discoloration. The MICR numbers should match the check number and bank details printed elsewhere on the check, and should be printed in ink that is dull not shiny. The paper should be of good quality and should feel like a normal check, and it should be perforated in the appropriate place.
The check number can be a guide to the authenticity of a check. Many fraudulent checks have low numbers, although this is not always the case and a low number does not always indicate fraud. In some cases, all of the checks in a fake checkbook will have the same check number.
As well as being vigilant about receiving fraudulent checks, it is also important to avoid writing checks that could easily be tampered with. Every part of the check should be filled out clearly, without leaving room for additional figures or letters to be added in. The check should be addressed to a named recipient.
The main benefit of a checking account for small business is the convenience that it offers. A checking account also makes accounting and accessing money easier, and ensures that the small business has a professional image.
A checking account can be a useful business tool. It is always a good idea to keep business and personal accounts separate, so opening a business account for a small business will be sensible. This checking account can be used to pay bills using checks or direct debits, and it will probably also come with a debit card that can be used when making business purchases.
Banks usually offer a range of different account types, including checking accounts that are specifically for businesses. Some of these accounts may require payment of regular fees, but others are free to use and are, therefore, ideal for small and start-up businesses. Free checking accounts do not usually require a minimum balance to be maintained. Some checking accounts will pay interest when the account is in credit, or offer overdraft protection, which can be a useful safety net for a small business.
Checking accounts that provide online access can be much more convenient for a small business. They allow the balance to be checked at any time, from any computer, and they also allow the account holder to arrange payments and handle other financial procedures from their home or office. This can save a lot of time.
Many banks also offer advice and accounting tools for customers who open a business checking account. These can provide useful benefits for small businesses, particularly when they are being run by somebody who is new to the world of business and who could therefore use some tips on organizing their finances.
Having a checking account linked to the business name will also help to make a small business look more professional when people are making payments to the business. Paying with a business checkbook or debt card will not only be more convenient than using personal checks and cards, but it will make the business look more important and professional too.
The benefits, which a small business will experience upon taking out a checking account, depend upon the specific type of checking account, which is opened and the financial institution, which is running the account. Different accounts and institutions offer different benefits to their business customers, so it is important to check all of the features which are on offer and to understand all of the fees and regulations that will apply before opening a new business checking account.
Once a small business has established itself, it may be worthwhile thinking about upgrading to a fee-paying checking account in order to benefit from additional services, although these are of more use to larger businesses so until the business grows, it is usually best to stick with a free business checking account.