SOP For Personal Check Verification

SOP Number: Finance and Accounting – 13

Department: Cash Control

Date Issued: 8-Aug-2021

Time to Train: 25 Minutes

Purpose of Personal Check Verification Processing:

Fraudulent checks can pose a significant threat to Hotel, banks/financial institutions. If they're cashed unknowingly, the hotel could be held responsible for the funds. It's important for the hotel management to proactively verify all checks. These steps deter fraud and detect it before it becomes an issue.

Credit Card Processing SOP Procedures:

1. Ask for a form of identity verification, to ensure that the name on the check is the same as that of the individual presenting the check for payment.

2. Make a notation on the check of the identification source and identifier used to verify the individual presenting the check as payment (e.g., driver’s license number, student identification number, etc.)

3. Establish a maximum on the amount for which the check can be written without pre-authorization directly from the bank named on the check.

4. Ensure that the check has:

  • Correct name of your business.

  • Correct date.

  • Correct dollar amount.

  • The same numerical dollar amount and written dollar amount.

  • A clearly identifiable issuing bank address.

  • A signature that matches the name on the check.

5. Examine the check carefully for any obvious signs of alteration.

6. Deposit all checks you receive promptly with your own bank.

7. Keep a list of individuals who have passed un-collectable checks to you previously, and require cashiers to refer to this list each time they accept a check.

8. Insist that all checks include a local telephone number and address.

9. Accept out-of-town checks with caution or not at all, as these checks may be more difficult to collect upon.

10. Instruct all employee accepting checks for payment to initial and date them. 

Training Summary Questions:

Q1. What is the purpose of the Personal Check Verification SOP?

Q2. What is a form of identify verification?

Q3. What all need to be verified in a check/cheque?

Q4. Is it required to keep the data of un-collectable checks?