If you want to protect yourself from losses due to dishonored checks, there are certain "rules" you must follow that can have a big impact on your success. Many of the most important rules apply at the moment you accept the check for payment. State statutes, local requirements and simple practicality also influence what can or cannot be done to recover a loss from a dishonored check.
There are some steps you should always take when accepting a check. We’ve developed a simple acronym – SANDI – to help people remember the steps.
S Double Check the SIGNATURE. Watch the person sign the check. Pre-signed checks are often trouble. Compare the signature against a photo ID that contains the person’s signature and document the ID number and type of ID used.
A Compare the AMOUNTs. If the amount written in numbers and the amount written in words don’t match, the bank won’t accept it. Carefully read both versions of the amount. If they don’t match, don’t accept the check.
N Check NUMBER. It’s a fact that most dishonored checks are written on new accounts. Be especially aware of checks that seem to be on a new account (i.e. Numbers in the "low 100’s" or "low 1000’s").
D Today’s DATE. Post-dated checks do not qualify for this Program. Make sure the date on the check matches the date you accept it.
I Complete ID.It is important that you get as much identification as possible. At a minimum you MUST get the following:
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