Check Connection will try to collect any check that you accept.
However, the first step in reducing your losses is to avoid the
high-risk checks at the point of sale. 

By training your cashiers on some of the following tips you 
will avoid many of the problems most merchants experience.

Basics

	Know your customers.
	Be impressed with the check itself - not the check writer.
	Always use a check verification system. While this won't make you bulletproof, it is much better than not using one. Verify the check before the customer leaves the store. Don't accept checks that the verification declines.
	Don't accept counter or temporary checks. These have a very high fraud rate.  If information is written in, it is often illegible or bogus.
	Don't accept checks printed on a home computer.
	Accept checks only from your local trade area unless approved by management.  Out-of-town checks, and especially out-of-state checks are much more likely to be stolen or closed accounts.
	Don't accept checks with low check numbers unless you personally know the check writer. Checks numbered under 200 are much more likely to be returned than established accounts. The lower the number the more likely the problem. Also be aware many banks are starting new accounts at #1000 instead of #100. Therefore check #1005 poses the same risk as check #105.
	Avoid cashing payroll checks. The counterfeiter will almost always counterfeit payroll checks.
	Always verify checks with a check reader. If it has a problem reading the check it may be due to the check's MICR line not being printed with magnetic ink. Most counterfeiters use a laser jet or copy machine (which use toner) or an ink-jet printer. All real checks will use magnetic ink.
	Don't accept two-party checks. You are not a bank. Frauds and problem collections greatly increase with two-party checks. The one who cashed the check will say it wasn't his check that bounced and to go after the one who wrote him the check. The one who wrote the check will say "I didn't get your money - go after the person who cashed it."
	Don't allow the check writer to write the check for cash over the sale amount.
	Set guidelines regarding the types of checks your business will accept - personal, two-party, payroll, government, or traveler’s checks. Make sure signs are posted in your establishment so customers know your check cashing policy.
	Examine the check - is it properly completed? Is the date correct? Do the amounts match? Is it signed? Is it made to the correct payee? Did the check writer take an unusually long time to carefully sign their name? Do the amounts appear to have been altered? Does the account number appear to have been altered by erasing any digits? Did they try to distract you during the transaction?
	If the checking account is listed as a joint account and one of the names has been scratched out, there is a higher risk of this being a closed account.
	Always get a picture ID - actually compare the picture and signature - don't just write down the DL #. If the customer writes down the DL # for you compare it to the DL # anyway. Fraud artists often write the number, hoping the clerk won't ask for it. It will never be the correct number in these cases. They'll probably then tell you they forgot their driver's license.
	Get a physical home address, home phone and work phone number. Collection rates greatly increase with a second phone number when traditional collection methods must be used. If the address is a post office box ask for a physical address. Ask the customer if the pre-printed information is correct.
	Be aware of which banks are no longer in business in your area. Oftentimes people obtain checks drawn on banks that have been gone for many years, and of course the account has been closed for at least that long. Banks that merge will usually continue to honor the old checks for a limited time. If the checks look very old they probably are. If the phone number on the check uses the old letter prefix in the phone number (such as PE5-1234) these checks are over thirty years old and these are checks somebody found or stole.
	Look for signs the check has been tampered with. Are there spills on it? Many times the criminal will go dumpster diving and find old checks. They use a chemical solution that will erase the handwriting on the check and any bank stamps, but leaves the pre-printed information intact. If they are doing this the check will have four strings of numbers on the bottom instead of just three. At the point of sale there should only be three: The bank routing number, the account number and the check number. If there is a fourth number, (the dollar amount of the original check after the bank encoded it) then this check has been altered.
	If the check is in question, step aside and call the bank to verify funds. Just because funds are available now doesn't always mean the funds will be available when you deposit the check, but you will be told if the check won't clear. Know however, that the fraud artist will usually come in when banks are closed.
	Call the phone number on the check and ask to talk to the person who is passing the check. If they are stolen checks you will quickly know. If the phone is disconnected don't take the check.
	If you should decide to take the check but are unsure if you did the right thing, have a trusted employee carry out the items for the customer if possible. Have them write down (but not on the check) a description of the car and the license plate. Date it and indicate the time as well, noting the check you accepted. Keep a simple log of such things in case it does turn out to be a fraud.
	Have a video camera (or at least a fake camera with a red light on it) aimed at the checkout counter. It should be in plain sight. Bad check writers, forgers and counterfeiters do not want to be caught on video. Your everyday honest customers will not be offended.

Counterfeit Checks  

Counterfeit checks made on color copiers and desktop computers look better than ever before. They account for the greatest losses occurred today. Counterfeiters use both business and personal checks. By observing the counterfeit signs indicated below you can virtually eliminate losses due to counterfeits.

	Look for a perforated edge. With the exception of government checks, every check has at least one perforated edge. Business checks may even be perforated on all four sides. This includes laser printed, dot matrix, payroll, etc. The check is often micro-perforated and not noticeable unless you look closely. No perforations indicate a STRONG possibility of a counterfeit. Also be aware of bogus perforations. Many times a counterfeiter will use ordinary paper and cut the checks to size with a paper cutter. Realizing the cashier may look for a perforation, they may attempt to make their own. We have seen perforations made with the tearing strip off a box of aluminum foil, even very bad ones made with pinking shears. Yet the cashier took them. Real perforations are subtle, yet detectable. Personal checks will have a perforation on the TOP EDGE ONLY 99% of the time. If there are perforations on the left side or the bottom of the check there is a strong possibility this is a counterfeit.
	Real checks use microprinting on the signature line. It may appear as a straight line to the eye, but is actually printing too small for even the best copiers to copy. Some stores have a powerful magnifying glass for closer inspections.
	Is the printing on the check shiny or dull? Shiny ink indicates the check was printed with toner used by a copier or laser printer. Real checks have dull printing. The special dull magnetic ink is required for the automated check sorting equipment banks use.
	Are the MICR numbers and the other printing on the check sharp or sloppy? Real checks will always be very sharp. Often counterfeiters use ink jet printers and the numbers may be smeared or bleed into the paper.
	If the company uses a logo or design on the check is it sharp, or is it sloppy and jagged? Many times a counterfeiter will scan a company's logo from the phone book, coupons, sales ad, newspaper or somewhere else. When they try to print the graphic on the check it is often very jagged. Would an actual company have accepted such poor printing from the printers? Here's an example of what they may look like:

	Look for the name of the check printing company on the left border of the check. Well known printers such as Deluxe, Harland, Clarke American and others will often list their name parallel with the left edge design. Most counterfeiters never include this.
	Most real checks have a watermark on the back printed in white ink that will appear if the check is held at an angle. It usually says "ORIGINAL DOCUMENT" and won't reproduce on a copier.
	Real check paper will have printing on the back in gray ink. It will have the endorsement lines as well as the notation "DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE - RESERVED FOR FINANCIAL INSTITUTION USE." There is usually a box describing the security features on the check as well. Counterfeit checks made with stationary paper won't have these, and the counterfeiter seldom prints them on the back of the check.
	Look at the MICR line. The bottom of the digits will always be ¼” from the bottom of the check if it is a real check. Counterfeiters rarely duplicate this accurately. Most counterfeiters print this line too high or too low from the bottom of the check. Often this is noticeable if you are aware to look for it.
	Look also at the memo line and signature line. It should be positioned about 1/8” above the MICR digits. Often there will be a much larger gap on counterfeit checks.
	Most real checks include a bank logo. Look for it. It is more than a company logo – it also serves as a security device. Very few counterfeiters attempt to use the logo – most just print the bank name. The ones who do use a logo usually print it poorly - the logo is jagged, smeared or the ink bleeds into the paper. A real bank logo on a real check will be very sharp.
	Be aware of what Federal Reserve District you are in. There are twelve different districts as shown below: