- E-Commerce
- Checkout Options for Your Online Store
- A Look at Your Online Customer Service
- How to Prevent Abandoned Shopping Carts
- General
- Is It Time for a Business Makeover?
- Fighting Fraud on the Web
- Wholesale Gift And Novelty Items Always A Boom
- Marketing
- Marketing Plan For Your Wholesale Business
- Blogging and the Wholesale Business Owner
- Effective Email Marketing for Your Wholesale Business
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- The Basic Rules of Search Engine Optimization
- Basic SEO Tips for Online Wholesalers
Keep Bad Check Losses Away from Your Bottom Line
By Sarah Pearson Published: 09/02/2009
There is no question that the economy is in sorry shape at the moment, and that means you need to be even more vigilant about the profits from your wholesale business and make sure they are safe and sound. Bad checks, whether they arise from an honest mistake on the check writing party's behalf or whether they arise from more malicious intentions, can wreak havoc on your bottom line. Because of that, some businesses do not accept checks at all. This is fine for you to do – it is up to you, of course – but if you would prefer to keep that avenue open to your customers, then there are some things to keep in mind about your check acceptance policies and how to protect yourself and your business from bad check losses.
The main things to do to protect yourself are to avoid taking bad checks in the first place. When a customer writes a check, make sure to get an address. Require that an address and phone number appear on the check somewhere, so that if something does happen where you do not get your funds, you know where to go to find the person that wrote the check. Accepting “starter checks” that do not have permanent address information printed on them is not a good idea. If the address on the check is a post office box or similar, think twice about accepting that check, too.
Examine the check carefully to make sure the date is accurate and that there are no markings or items that have been crossed out or rewritten beforehand (sometimes mistakes are made in front of you, and if that happens, then it should be okay as long as you have the check writing party initial the corrections). If the date is wrong, have them rewrite the check or flat out do not accept it. Accepting a post dated check is a bad idea, because in some states, the check writing party is not held responsible for insufficient funds on a post dated check.
Last, but certainly not least, confirm the identity of the person writing the check. Ask for identification, preferably a driver's license or other state issued ID card, and make sure the address and name on the ID you are shown matches the name and address on the check. If it doesn't match, then...you guessed it...don't accept that check. Taking these steps to prevent taking bad checks before they cost you any money is the smart way to protect yourself and your business.
