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10. Do not accept third party checks.
11. The four-digits following
magnetic ink character recognition (MICR) number at bottom of check should match four-digit number at top right hand of check.
12. All checks, except government checks, should have a perforation along one side of check.
13. Use a check verifications system. This form of protection should significantly reduce volume of “less collectable” checks (those passed by check-writer’s with a history of passing bad checks).
14. Have a camera at point of sale. Forgery, fraud and bad check-writers do not want their picture taken. A video camera conspicuously placed will deter most dishonest people.
15. Utilize a free check collection service for fastest collection of those checks that do bounce to maximize.
Using a check collection service is critical to minimizing your costs. On average, 2 out of every 100 checks are going to bounce, when that happens, time is of essence to recovering your money. Check collection services have tools and expertise to collect on bad checks quickly, over 80% of time for top providers, and their services are usually free to businesses as they make their income from collections fees allowed by each state.
When choosing a service, choose a free service and avoid companies who offer “guaranteed” collections for a fee. The fee charged for guarantee ends up being substantially more expensive than implementing a good check acceptance policy in conjunction with a reputable, free collection service. Also, choose a company with a good reputation for customer service. It is beneficial to know that your service provider will work with you when a special circumstances need to be considered for a particular collection. Finally, expect to maintain full control of your checks. Only hire a service that guarantees to return your checks to you at any time in collections process.
CybrCollect is a free check collections service that meets these requirements and more. I recommend CybrCollect because:
1. Free service to businesses 2. Excellent Customer Service 3. Clients maintain full control of their checks 4. Best collections rate in industry, over 80% of NSF checks collected within 30 days 5. Industry leading client website for 24/7 access to collections information 6. Exclusive “Executive Analysis Report” for determining true cost of accepting checks.
Marc Eskew is widely recognized in the area of accounts receivable management. For more information on optimizing your cash flow, the CybrCollect program, or to contact Mr. Eskew, please visit www.fmxservices.com/cashflow.
