01 Oct 2015

Prevent the Horror of Check Fraud when using a Third Party to Print Checks

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Something evil is lurking in the darkness, just out of your sight. Your heart pounds and you freeze as the horror begins to dawn on you. Could your accounts have been compromised by fraudulent check activity?

When printing checks outside of the BMS software (such as when using a third party to print payroll checks), your accounts are more susceptible to check fraud. Luckily, BMS can help you prevent the nightmare of check fraud from becoming a reality when you follow a few simple steps:

  1. Open a separate DDA account for payroll activity. Provide this account number and the Rabobank ABA number to your payroll processor.
  2. Request that the payroll company begin the number sequence of the first batch of checks at 1000 − with subsequent check runs following sequentially so as not to repeat previous check numbers.
  3. Request that the payroll company provide the check data in either an Excel (.xlsx) or a comma-delimited (CSV) format. Data should include:
    1. Check number
    2. Payee
    3. Dollar amount
    4. Check date
  4. Send this check data to your Account Manager at least 24 hours before the checks are issued. This will help BMS to get fraud protection in place before your checks begin to clear.

The BMS Banking Center and Rabobank have a series of procedures in place to monitor for check fraud. We err on the side of caution rather than taking a risk and paying potentially fraudulent checks, since processed checks that are not listed in your banking records are more likely to be considered fraudulent, resulting in non-payment.

To ensure that your third-party checks process properly, take the following steps:

  1. Make sure signatures printed on the payroll checks match as closely as possible to those provided on Rabobank signature cards. Using a different signature will result in verification phone calls, causing delays in getting your checks paid.
  2. Request that your third-party payroll companies use the Rabobank check template. This template can be requested from your Account Manager, or the BMS Banking Center. Printing checks in an alternate format may trigger a fraud alert resulting in non-payment.

Taking these steps will ensure that your accounts are protected when using a third party to print checks, as well as result in a much more simplified reconciliation process each month on your accounts.

If you have any questions, please contact your Account Manager or the BMS Banking Center at banking@bmsadvantage.com.