Rules post dating bank checks

25 May

However, some state laws regulate which forms of identification businesses can require to see. Follow these tips when verifying customer identification: Bounced Checks What should you do if a check is returned because a customer's account is closed, or has insufficient funds to pay for the transaction?Depending on your business location, it may be illegal to require customers to show a credit card as a condition for accepting their check. In addition to instituting a check policy, some new businesses are employing the help of electronic check verification companies to identify flagged individuals.An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and bank.(b) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.Don't just make a document and file it away--be sure to train your employees on the new policies and post reminders in visible and prominent locations.

If you want to expand your customer payment options beyond cash but aren't ready to make the leap to card payments, accepting checks is another option to consider.[...] If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act.The loss may include damages for dishonor of subsequent items under Section 4-402. You're writing a future date on the check, not past, to ensure that the check will not be deposited before that day.Under Section 2 thereof, the making, drawing and issuance of a check, payment of which is refused by the drawee because of insufficient funds in or credit with such bank, is prima facie evidence of knowledge of such insufficiency when the check is presented within 90 days from the date of the check.However, the prima facie evidence of knowledge of such insufficiency does not lie when the maker or drawer pays the holder of the check the amount due thereon, or makes arrangements for payment in full by the drawee of such check within five (5) banking days after receiving notice that such check has not been paid by the drawee.