Accepting Check and Asking for Identification

Accepting Check and Asking for Identification

An individual paying for purchases with a check will most likely be asked by the merchant to verify their identity before the check is accepted. Frequently the business will also ask for a driver’s license number, phone number, and in some cases a credit card number.  Many states define what information a merchant can ask for when taking a check.   Currently, twenty states and the District of Columbia dictate what identification a merchant can require when accepting checks and of that information what is permissible to record on the check.

A company taking checks from their customers needs to establish the check acceptance policies and procedures. Additionally they should decide what information is necessary to collect on the check if it is return unpaid. It is strongly suggest that they should also talk to their attorney to make sure their check acceptance policies are in accordance with all state and federal laws.