Check payment is a widely accepted form of payment that businesses use. All businesses try to establish a check printing system in-house to make the payment process efficient. Whether you have A3 printers or commercial grade solutions in the office, your check payment system can save plenty of time when issuing payments. However, there are some safety concerns with check payments. To ensure that you are not at a loss for your chosen payment method you need to take a few precautionary steps.
Control Check Printing
Setting up printers for checks can give your whole office access to your business account. The check printing process should be in the hands of a few trustworthy people. If you are starting a small business, then the check payment process should be controlled by you or your partners. You should not give access to check papers to anyone who is not authorized to print checks.
Have Separate Check Printers
If you have multiple printers in the office, then you might end up printing checks on the wrong paper. You need to set up dedicated printers for checks. Having separate printers for checks can allow you to monitor the check payments and make the process more efficient.
Use Accounting Software
When making a payment, it is best to avoid human error. RPA software like QuickBooks or alternatives can allow you to keep track of payments. The software can also make the check printing process easy by producing checks using the dedicated printers for checks. Avail the services of software to print checks error-free.
Recheck The Payee Details
You can buy either printed checks or blank check papers. Both need to be inserted into printers for checks to get the payee details printed onto the paper. With blank checks, your bank details also need to be printed on. After printing the check, verify if the information on the check is correct or not. If you misprint a single digit, the check might not be accepted, or it might lead to excess payment.
Keep Your Endorsement Stamps Safe
Checks need to be endorsed before being handed to the payee. For businesses that use check payment as a regular form of payment, endorsement stamps become necessary accessories. By using an endorsement stamp the check payment process is expedited. So, if anyone gets access to the endorsement stamp, they can forge checks. Keep your endorsement stamps under lock and key when not in use.
Hand Checks To Payees
Once you have endorsed the check, anyone can take it to the bank and deposit it. If you are mailing the check, then ensure that the address of the payee is correctly copied onto the envelope. If you are handing over the check to the payee or to a representative of the payee like virtual assistants, verify the identity of the person.
Notify Your Bank
Many businesses give post-dated checks to their payees. This makes it easy for the business to pay off vendors once funds get replenished. However, if your payee tries to deposit the check early then, it can drain your funds or damage your credit record. You should notify your bank that you have issued a post-dated check so that the bank does not allow the transaction. Similarly, if you have handed out a check with an error, you need to notify the bank before the payee presents the check.
No matter how you plan on completing transactions, you need to take precautionary measures. Limit access to your check printing setup and check for errors before handing out checks.