Article: Your policy and the fee you charge for bad checks should be posted somewhere in your place of business where it's easily seen by your customers. This is usually near your cash register. Also include it in a section of a customer contract and on your website. You may want to add a collection fee to help make up for your time and trouble of handling a bad check. Your state may have a law as to what fees (if any) collectors can add to the face value of the check. Many states limit collection fees up to a specific amount such as $100, or to a percentage of the face value of the check, and prohibit interest charges. You will want to post this fee, if applicable, in your bad check policy. Writing this information on the check will help should you need to contact the check writer if the check comes back to you for non-payment. It helps to keep a customer database of email addresses, as this may be a better, more convenient way of contacting the check writer initially. Collecting name and phone number and comparing the writer to a legitimate id with a picture should be a strict policy. Never take third-party checks.
What is a summary of what this article is about?
Post your bad check policy. Check your state law regarding fees. Always record the check writer's phone and driver's license number.