How to Outwit Bad-Checks Passers

Time was when a man's word was as good as his bond. But nowadays, even the signatures of many persons are worthless - especially to retailers who are stuck with bad checks and bounced check.

This Chapter offers suggestions that should be helpful in keeping bad checks out of the cash register of stores. For example, the key items on a check should be examined closely because they can tip off the owner-manager to a worthless check. Your procedures should also include a dollar limit on the size of checks you will accept and the type of identification necessary to back up the signature or endorsement. In addition, it is profitable to review with employees the checks which the bank refuses to honor.

A neatly dressed stranger pays for her groceries with a payroll check issued by a company in a nearby city, In the next few hours she does the same thing in several other food stores.

In another community, a middle-aged man pays for a pair of shoes with a Government check. He moves to other stores and cashes several more Government checks.

In another community, a well-dressed woman pays for an expensive dress with a blank check. "I need a little pocket cash," she says. "May I make the check for $20 more?" The salesclerk agrees, never suspecting that the customer does not have an account in any bank.

Tomorrow, these three con-artists will work in other communities.

The specialist in payroll checks will fill out blank ones which she has stolen. The passer of Government checks is also a thief. He steals Social Security checks, tax refund checks, and so on from individual mail boxes. "Blank check" Bessie will hit her victim after the banks have closed.

These three, and others who pass worthless checks, are clever. They live by their wits and are often glib talkers. But they are not so clever that you can't outwit them.

Types of Checks

Winning the battle of wits against bad-checks / bounced check passers is largely a matter of knowledge and vigilance. You have to know what you're up against, pass the information on to your employees, and be constantly on guard when accepting checks.

You are apt to get seven different kinds of checks: personal, two-party, payroll. Government, blank, counter, and travelers. And some customers may offer money orders.

A Personal Check is written and signed by the individual offering it. The individual makes it out to you or your firm.

A Two-Party Check is issued by one person, the maker, to a second person who endorses it so that it may be cashed by a third person. This type of check is susceptible to fraud because, for one thing, the maker can stop payment at the bank.

A Payroll Check is issued to an employee for wages or salary earned. Usually the name of the employer is printed on it, and it has a number and is signed. In most instances "payroll" is also printed on the check. The employee's name is printed by a check writing machine or typed. In metropolitan areas, you should not cash a payroll check that is hand written, rubber stamped or typewritten as a payroll check, even if it appears to be issued by a local business and drawn on a local bank. It may be a different story in a small community where you know the company officials and the employee personally.

A Government Check can be issued by the Federal Government, a State, a county, or a local government. Such checks cover salaries, tax refunds, pensions, welfare allotments, and veterans benefits, to mention a few examples.

You should be particularly cautious with government checks. Often they are stolen and the endorsement has been forged.

In some areas, such thievery is so great that some banks refuse to cash Social Security, welfare, relief, or income tax checks, unless the customer has an account with the bank. You should follow this procedure also. In short, know your endorser.

A Blank Check, sometimes known as a universal check, is not longer acceptable to most banks due to the Federal Reserve Board regulations that prohibit standard processing without the encoded characters. This universal check may be used, but it requires a special collection process by the bank and incurs a special cost.

A Counter Check is still used by a few banks and is issued to depositors when they are withdrawing funds from their accounts. It is not good anywhere else. Sometimes a store has its own counter checks for the convenience of its customers. A counter check is not negotiable and is so marked.

A Traveler's Check is a check sold with a preprinted amount (usually in round figures) to travelers who do not want to carry large amounts of cash. The traveler signs the checks at the time of purchase and should counter-sign the check only in the presence of the person who cashes them.

In addition, a Money Order can be passed as a check. However, a money order is usually sent in the mail. Most stores should not accept money orders in face-to-face transactions.

Some small stores sell money orders, If yours does, never accept a personal check in payment for money orders. If the purchaser has a valid checking account, why does he or she need a money order? The check is possible no good.

Look For Key Items

A check carries several key items such as name and location of bank, date, amount (in figures and spelled out), and signature. Close examination of such key items can sometimes tip you off to a worthless check. Before accepting a check, look for:

Nonlocal Banks. Use extra care in examining a check that is drawn on a nonlocal bank and require positive identification. List the customer's local and out-of-town address and phone number on the back of the check.

Date. Examine the date for accuracy of day, month, and year. Do not accept the check if it's postdated, or if it's more than 30 days old.

Location. Look first to be sure that the check shows the name, branch, town, and State where the bank is located.

Everyone needs To be knowledgeable about the Decision Making Process. All of us rely on advice, and tools or techniques, to help
us in our everyday lives.

When we go out To eat, the restaurant is the tool that supplies us with the information needed to decide what to purchase and how
much to invest.

Running a Business also requires making conclusions using techniques and information - how much stock to maintain, what price to
sell it in, what credit arrangements to offer, how many people to hire.

Decision Making Procedure in company is the systematic process of identifying and solving issues, of asking questions and finding
answers. Decisions are made under conditions of uncertainty. The future isn't understood and occasionally even the last is
suspect. This guide opens the door for company owners and managers to learn about the variety of techniques that may be utilised
to improve your decision making process in a world of uncertainty, change, and uncontrollable circumstances.

A General Approach to Decision Making Process. If a scientist, or an executive of a significant company, or a small business owner
you are able to gain from boosting your decision making skills. The general solution to systematically solving problems is exactly
the same. The next 7 step method to enhance management decision making may be used to examine virtually all issues faced by a
business.

State the problem. A issue first has to exist and be realized. What's the problem and why is it a issue. What's perfect and how
can present operations vary from that ideal. Describe why the symptoms (what's going wrong) and also the triggers (why is it going
wrong). Try to define all terms, theories, variables, and relationships. Quantify the problem to the extent possible. If the
problem, not accurately and fast fulfilling customer orders, then try to determine how many orders were incorrectly full and how
long it took to fulfill them.

Establish the Objectives. What are the objectives of the analysis. Which objectives are the most critical. Objectives are said by
an action verb like to reduce, to grow, or to improve. Returning to the customer dictate problem, the major objectives would be:
1) to increase the proportion of orders filled properly, and 2) to decrease the time necessary to process and order. A
sub-objective could include to simplify and streamline the order filling procedure.

Develop a Diagnostic Framework. Next set a diagnostic framework, that is, determine what approaches will be utilized, what types
of information are required, and also how and where the info is to be found. Is there likely to be a customer questionnaire, a
summary of business records, time and movement tests, or some thing different. Which are the assumptions (facts assumed to be
correct) of this analysis. Which are the criteria used to judge the study. What time, budget, or other limitations are there. What
kind of qualitative or other special techniques are going to be utilized to analyze the information. (Some of which will be
covered shortly). To put it differently, the diagnostic framework establishes the scope and methods of the whole study.

Collect and Analyze the Data. The next step is to gather the data (by following the methods created in Step 3. Raw information is
then tabulated and organized to facilitate analysis. Tables, charts, graphs, indicators and matrices are a number of the
conventional ways to organize raw data. Analysis is your critical prerequisite of sound business decision making. What does the
data reveal. What facts, patterns, and trends can be seen from the information. A number of the qualitative methods covered below
can be used during the measure to determine details, patterns, and trends in data. Of course, computers have been used extensively
during this measure.

Generate Alternative Solutions. After the analysis was finished, some specific conclusions about the nature of the issue and its
resolution must have been achieved. The next step is to create alternative solutions to the issue and position them in order of
the net benefits. But how are alternatives best generated. Again, there are several well established techniques such as the
Nominal Group Method, the Delphi Method and Brainstorming, amongst others. In these methods that a group is involved, all people
who have reviewed the data and analysis. The method is to have an informed group indicating many different feasible solutions.

Develop an Action Plan and Implement. Pick the best answer to this problem but be sure to understand clearly why it's best, which
is, the way that it accomplishes the goals created in Step 2 better than its options. Then develop an effective method (Action
Plan) to execute the solution. At this point an important organizational consideration arises - who is going to be responsible for
seeing the implementation through and what power does he have. The selected manager should be accountable for seeing that all of
tasks, deadlines, and reports have been performed, fulfilled, and composed. Details are all important in this measure: schedules,
reports, tasks, and communication will be the key elements of any action program. There are lots of techniques available to
decision makers implementing an action plan. The PERT method is a method of setting out an whole period such as an action plan.
PERT will be covered soon.

Evaluate, Obtain Feedback and Monitor. Following the Action Plan was implemented to Fix a issue, management must evaluate its
effectiveness. Evaluation Criteria must be ascertained, feedback stations developed, and observation performed. This Step should
be performed after 3 to 5 weeks and again at 6 weeks. The goal is to answer the bottom line question. Has the issue been solved?

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