Crime Prevention Part I CHECKS & CREDIT CARDS TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of TxSSC-ICJS (2010)

LEARNING OBJECTIVES Student will be able to identify why business people feel they must accept checks and credit cards. Student will be able to identify why business people are reluctant to have strict policies and enforcement when accepting checks and credit Student will be able to identify the main cause of loss from fraudulent checks and credit. Student will be able to identify acceptable and unacceptable types of identification for check and credit card. TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of CSCS-ICJS (2009)

LEARNING OBJECTIVES Student will be able to identify correct procedures for establishing a check cashing and credit card acceptance policy Students will be able to list the proper procedures for cashing checks and accepting credit cards. Students will be able to explain the magnetic numbers on the check. Student will be able to list the items on a check or credit card that can be used to determine the authenticity of a check or credit card.

CHECKS & CREDIT CARDS Most businesses cash checks for convenience to customers to encourage new or continued patronage. Laxity on the part of business people, combined with their desire to increase sales, makes fraudulent checks and fraudulent use of credit cards (Theft of Service) make them a significant problem.

CHECKS & CREDIT CARDS For every careful merchant who refuses to accept a check there is another down the street who will accept it. The criminal need only find his mark. As you do your commercial surveys you will see for yourself that many businesses do not have an established check cashing procedure policy

THIS IS NOT A GOOD WAY TO STIMULATE THE ECONOMY!

CHECKS & CREDIT CARDS Lose business Customer convenience Why do business people feel that they have to accept C+CC? Lose business Customer convenience Competition does it Encourages impulse buying Reduces cash handling.

Checks and Credit Cards Why are many business people reluctant to have strict policies and enforcement when accepting checks and credit cards? Alienate customers Lose business Time training employees Time and expense of prosecution.

Checks and Credit Cards List the main causes of loss from fraudulent checks and credit cards. Laxity Failure to thoroughly examine check Failure to electronically verify check Failure to require proper ID Fraudulent ID

Checks and Credit Cards Acceptable forms of ID Valid driver’s license or DPS ID with picture Military ID with picture Passport Primary Secondary. Most valid form of identification for check cashing is VALID DRIVERS LICENSE!

Checks and Credit Cards

Checks and Credit Cards Sound policies and procedures for check cashing and credit card use. Employee training Strict enforcement of policy Post policy Electronic verification Don’t return card and DL until verified. Sign check in front of clerk Do not accept out-of-state or to a 3rd party check starting with low number, made out to cash

Checks and Credit Cards Sound policies and procedures for check cashing and credit card use. Limit amount of purchase Management approval for over amount Thoroughly examine check and ID Compare signatures, and photo, age, etc Compare written and numerical amount Do not accept pre or post dated.

Checks and Credit Cards The different characteristics of a check, including the information contained on the front of a check. Complete legible, accurate, no write-over's Look for signs of tampering Name and address printed American Banker’s Association numbers Bank name and location All printing should be quality Payee signature.

Account Owners Name & Address American Banker’s Association numbers Bank’s Name

Checks and Credit Cards The different characteristics of a check, including the information contained on the front of a check. Magnetic Ink Character Recognition numbers, dull finish, slightly raised MICR numbers always begin 5+5/8” from right edge At least 1, but as many as 3 perforated edges.

Checks and Credit Cards What info should clerk record on front of check? Less than 60 seconds Record on front of check: DL# DOB Supporting ID Phone Employee ID.

DEFINE & PROCESS Identify why business people feel they must accept checks and credit cards. Identify why business people are reluctant to have strict policies and enforcement when accepting checks and credit Identify the main cause of loss from fraudulent checks and credit. Identify acceptable and unacceptable types of identification for check and credit card. TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of TxSSC-ICJS (2010)

DEFINE & PROCESS Identify correct procedures for establishing a check cashing and credit card acceptance policy List the proper procedures for cashing checks and accepting credit cards. Explain the magnetic numbers on the check. List the items on a check or credit card that can be used to determine the authenticity of a check or credit card TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of TxSSC-ICJS (2010)

QUESTIONS TAKE A BREAK

SOURCES Handbook of Loss Prevention and Crime Prevention, Fourth Edition, Lawrence J. Fennelly. TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of TxSSC-ICJS (2010)

RESOURCES TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of TxSSC-ICJS (2010)

Institute for Criminal Justice Studies (ICJS) Presenter Contact Information Institute for Criminal Justice Studies (ICJS) 350 N. Guadalupe, Suite 140, PMB 164 San Marcos, Texas 78666. 877-304-2727 www.cscs.txstate.edu TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of TxSSC-ICJS (2010)