Check security helps business owners protect one of the most important aspects of their business-–cash flow. With improved fraud prevention policies, many financial institutions offer a range of options designed to help businesses verify check payments, as well as use other payment types to avoid check payments altogether.

Electronic checks, check verification systems and positive pay are a few of the options offered to businesses to improve check security when accepting check payments. Consider the following tips to get improved check security for your business:

1. Explore how electronic checks can help with check security.

2. Review benefits of automated check printing services.

3. Implement internal controls to prevent check forgery.

Action Steps
The best contacts and resources to help you get it done

Get advanced check security features from electronic checks

Like paper checks, electronic checks are legally binding payments. As a result of advanced customer identification and security systems involved in processing electronic checks, this form of payment offers heightened check security and decreases the possibility of fraudulent checks. Electronic checks can also be processed much faster than paper checks which generally take seven to 10 business days for the bank to validate funds.

I recommend: Merchant Equipment offers an electronic check system and check security options to help you easily accept electronic checks without worrying about fraud or an unsecure transfer of funds. Sage also offers electronic check services.

Increase check security with an automated check-matching system

Consumers tend to use checks because they are a great way to monitor transactions and keep spending to a minimum. Continue to accept paper checks by using a system offered by most banks to automatically detect fraudulent checks on a daily basis.

I recommend: Comerica Bank offers positive pay to to detect fraudulent and unusual activity. PNC's positive pay service is offered to businesses at no additional cost. With this service, business owners can increase check security by easily monitoring the validity of check payments.

Use check verification systems to increase check security

Check verification can help you increase check security by allowing you to verify sufficient funds when the customer provides you with a check payment. This system will quickly confirm whether the customer's account is overdrawn, closed, open or frozen.

I recommend: To increase check security, InfoMerchant checks more than 76 million alerts and checking accounts to determine if your customer is trying to present a bad check for payment. Creative Cash Flow Solutions offers online check verification services in real time.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To increase check security, be sure that you take the appropriate steps to detect bad checks such as having the customer sign the check in your presence, compare the check address with a state ID and avoid accepting a check with altered information. Internally, you can prevent check forgery by limiting check writing privileges to one or two reliable staff members.