Posted by Ernest__CT on 12/10/06 7:40am Msg #165096
A random thought about checks we receive
There are times when we think we have not been paid for specific signings. In some of those instances, the company may claim that it paid us, and may have an endorsed check in its posession. Does that check match those signings?
The question becomes, "Does the image of the signature on the back of the check go with the front of that check?" And, "Did that specific check pay me for those specific signings?"
Do you think that we could add something to the backs of checks when we endorse 'em? A number, for example? Would the bank(s) complain?
Here's ONE WAY to create a magic number for the backs of checks: Divide their check number by a magic number and write the remainder from the division next to your signature. (This is known as modulus or modular arithmetic.) For example, suppose you chose 63 as your magic number. An example check number is 5859. 5859 / 37 = 158 with 13 left over. The signature would say "FirstName MI LastName 13". It is not ***easily*** possible to work backwards to figure out the magic number.
Any suggestions how to encode the signer(s) name(s) to just a letter or two?
| Reply by Ernest__CT on 12/10/06 7:59am Msg #165097
P.S. Use a prime number as your magic number. n/m
| Reply by PAW on 12/10/06 8:13am Msg #165098
My checks never have a signature on the back. We use a "FOR DEPOSIT ONLY" stamp, that has our business name, bank name, and account number. Therefore, any checks from any company that is cashed or deposited by someone else (and it happens, too often), it's easy for us to determine that.
There is a notary in WV with the same name as myself. Once in a while, companies send him my checks, and he simply cashes them or deposits them in his bank. I guess he doesn't have any accounts receivable system to check to see if the check is really his or not. (I always ask companies to use my BUSINESS name when writing checks to eliminate this problem. But some companies still write checks to me, personally.) At any rate, on the occasions this has happened, it's taken a bit of time to get it resolved with the hiring company, but has always been resolved.
| Reply by Lee/AR on 12/10/06 9:00am Msg #165102
I see the problem, but think I would just write the darn check # on the back. This would also clue them that if you are asking about payment for the Smith signing, don't send a copy of the back of the Jones signing check.
| Reply by Gerry_VT on 12/10/06 12:13pm Msg #165130
I'm trying to imagine the conversation. Not: I have not been paid for the Jones job. That check image you emailed had the Jones job for the front, but the endorsement on the back was from the Smith job. SS: How do you know. Not: Well, you see that number 13 on the back? Well, you start with the check number, then you divide by my magic number with modular arithmetic, and... SS: Click.
| Reply by Gerry_VT on 12/10/06 12:19pm Msg #165132
On further consideration, the magic number method would be a good way for the notary to convince himself that it is a legitimate endorsement, if his recordkeeping was less than ironclad, but it would be tough to convince anybody else.
| Reply by MikeC/NY on 12/10/06 8:02pm Msg #165184
Am I missing something here?
The checks I've received have all had an attachment listing the invoice # and/or borrower name to identify what the check is paying - it's sometimes called a "disbursement letter" (there are other names for it), and it's standard practice with most A/P systems. Are you saying you regularly receive checks with no disbursement info?
Personally, if I received a check I couldn't connect to an invoice, I'd call A/P and ask before I cashed it - I just think it would be better to spend the five or ten minutes up front than to spend hours trying to sort it out two months later...
| Reply by David Kral on 12/11/06 10:04pm Msg #165323
Check usually has and endorsement and paid date on it so that you can tie it to a specific check. If they owe you $100.00 and $100.00. They need to give you two copies with different dates and if you deposit all your checks to one bank then you should be able to trace it back.
I always prepare a deposit ticket and lay it on my scanner printer with the check. I keep them in my checking account file. I can tick off each deposit and if I have any questions, refer to a photocopy of the transaction.
USbank actually images both the deposit and your checks which is pretty nice. You have to pester them to turn this service on, but it works great.
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