| |
| |
|
Small Business Information |
|
|
|
Accepting Checks in Your Business Virtually Risk Free
Most businesses accept checks as form of payment for goods and services. However, accepting checks can be a risky endeavor if your company doesn't follow good policies and procedures for preventing loss from bad checks. In fact, the reason some businesses do not accept checks is because of a history excessive "bad checks" that costs their business to much money and aggravation, preferring to accept only cash and credit cards. Whether a business currently accepts checks or not, they can minimize the cost of accepting checks to less than 1%, which is less than half the 2% to 3% cost of credit card processing. The only payment method cheaper is accepting cash. Outlined below are tips for formulating your virtually risk free policies and procedures for accepting checks. For the purposes of this article, "virtually risk free" is defined as achieving a cost to accept checks of 1% or less. Not all items will apply to all businesses but if you determine that accepting checks in your business is "high-risk", a more stringent program using more of these tips is needed. In any case, your policy needs to be in writing, distributed to all employees, and followed without exception. 1. Clearly defines acceptable forms of ID, required information and dollar limits. Post these requirements where customers can see them at the point of sale. 2. The check-writer's name and address should be pre-printed on the check. Ask for and write the phone number if it is not pre-printed on the check. 3. Make sure the written and numeral amounts correspond. 4. Watch the check-writer sign the check. If the name is illegible, have the customer print the name below. 5. Compare the signatures, photo and physical description from the ID with that of the check writer. 6. Verify that the ID is still valid! Check the driver's license for signs of alteration or modification. 7. Most returned checks have low check numbers (100 to 500), which indicates a new account and therefore a more risky check, particularly for business or "dba" (doing business as) checks. Do not accept starter checks. Any number under 300 should be a "red flag" and require a manager's approval for acceptance 8. Never take business checks from individuals unless you know the business and the individual. Business checks are not presently eligible for electronic re-presentment. With available software, virtually anyone can produce a business check. 9. Do not accept checks with PO boxes?always get a street address for the check-writer. 10. Do not accept third party checks. 11. The four-digits following the magnetic ink character recognition (MICR) number at the bottom of the check should match the four-digit number at the top right hand of the check. 12. All checks, except government checks, should have a perforation along one side of the check. 13. Use a check verifications system. This form of protection should significantly reduce the volume of "less collectable" checks (those passed by check-writer's with a history of passing bad checks). 14. Have a camera at the 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 the 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 the essence to recovering your money. Check collection services have the tools and expertise to collect on bad checks quickly, over 80% of the 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 the companies who offer "guaranteed" collections for a fee. The fee charged for the 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 the 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 the 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 http://www.fmxservices.com/cashflow
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Debt Collection Techniques Here are some sound debt collection techniques that can be followed by businesses to mitigate the bad debt crisis:Sending a pre-collection letter. Hiring a collection agency. How to Find Success in the Import Export Business Take advantage of world politics today and start your own import export business. Are you organized, efficient, and ready to make your future in an opportunity all your own? Import Export Business Opportunities are expanding and there is room for you!In the early nineteen eighties, one of the most popular things in Soviet Russia was American made blue jeans. Electronic Franchise Disclosure and E-Signature Future for Investors It has been discussed allowing Franchising companies to electronically disclose franchise documents to the public and prospective franchisees. If the Federal Trade Commission wants to make UFOC information available electronically through email to catch up with the newest technologies then it will get complaints and make up another rule saying no unsolicited UFOC maybe sent through email. Its Spring - Time For A Compensation Program Tune Up Now that winter has passed, the annual ritual of spring cleaning is in full swing. Spring cleaning is more than cleaning the windows and clearing the cobwebs that hid in the corners during the winter. How the Humble Ice Cube Made Business History Gather round while I tell you the story of Kennebec Ice. It's a story full of valuable business lessons even though it happened long ago. Looking for a Business to Run in the New Revitalized Downtown Area? Looking for a place to add a Quick Lube away from your Super Wal-Mart Competitor? Down Town Revitalization, Why You Should Be Part of Such a Committee.A study showed that within the next five years 20% of LOF- Lube, Oil and Filter Independent Owners said they had plans on adding one or more facilities. QSR Quick Service - Fast Food Restaurants Labor Situation in United States One of the major complaints in the QSR Quick Service-Fast Food Restaurants Industry is the deplorable Labor Situation. In United States teen labor has become somewhat slim on ethical standards, showing up on time, drug use (both recreational and problematic), work ethic and trainability. 6 Steps to a Successful Medical Spa Expansion According to the American Society for Aesthetic Plastic Surgery, since 1997, nonsurgical procedures have increased by 471 percent. Jeff Russell, CEO of MedSpa Financing, comments "Medical Spas are a natural progression of medical practice expansion, having a medical doctor run them gives them the credibility and public confidence needed for their success. One Of The Best New Business Opportunities May Be Right In Your Home - A New Daycare Business The day care industry is expanding. There are now more than 100,000 licensed child-care centers and 250,000 licensed family day care homes across the United States. Obtain Maximum Results For Your Small Business Through Better Time Management Most small business owners are faced with so many responsibilities and an unbelievable workload throughout the day. Mainly because of the many different roles that we have to play. Financial Fundamentals - What Every Small Business Owner Should Know! Business owners rarely go into business to deal with the financial aspects of running a business. It's easy to understand why! You are passionate about the products or services you provide and want to focus your time there. Secrets of Cleaning Truck Trailers in Your Fleet from a Veteran Truck Washer Cleaning the trailers towed by big trucks is not easy, those big forty-foot to fifty-three foot boxes are quite intimidating up close when you are holding nothing more than a brush and pressure washer gun, looking at a soap bucket. The hardest thing to do is to clean the back doors of trailers because they get really greasy from all the debris and stuff the truck has driven through. How To Plant Seeds of Success With Small Business Ideas Think of all of your business ideas as tiny seeds that have the potential to germinate and grow into huge fruit bearing orchards! However, the proper steps must be taken; you can't scatter the seeds haphazardly on pavement and expect they will germinate. Growing a business is no different; it needs a fertile environment conducive to growth in order to germinate and thrive. Accounting Methods - Cash and Accrual When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method. Analyzing Customers in Your Business Plan The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs. Five Tips for First Time Entrepreneurs It seems so long ago that I started my first business. Since that time, I've created several successful businesses and learned a lot of lessons along the way. Small Business Marketing, According to Seinfeld What could Seinfeld possibly have to do with marketing a small business? As it turns out, all small business owners could take a few lessons from the show that brought us such popular phrases as "Man Hands" and "master of your domain".The Coffee Shop - Jerry, George, Kramer, and Elaine spent countless hours in the coffee shop, talking about "nothing. Small Business - A Thing Worth Doing Is Worth Doing Badly A thing worth doing is worth doing badly. Yes I know that it should be 'well'. The Wrap on Ag Plastic While driving through Pennsylvania farmland, you have probably noticed an increased amount of white plastic bundles stacked in lines or piles along farm buildings or edges of farm fields. Sometimes referred to as "marshmallows" or "long white tubes", etc. Are You Using a Chess or Checkers Small Business Marketing Strategy? Until the day I learned to play chess I loved playing checkers. Both games require a strategy that maximizes a player's ability to capture her opponents pieces without first losing her own.
|
| home | site map | Web directory | Pham Thanh Long | Luat su| Lawyer| Links |
| © 2006 |
