Laser check printing is a rapidly growing
technology being used by more businesses daily. It is a cost
effective measure that, when used carefully, can provide an
extra measure of fraud prevention. Printed laser checks look
very professional and are easy to set up on most computers, but
selection of processing software is an important consideration.
The future may hold strictly electronic processing, but in the
present, paper checks are still the preferred method for most
businesses, and usage is predicted to continue and expand.
|
 |
While laser printing may be marginally more cost-effective than
preprinted checks, some safeguards should be implemented to
avoid fraud. Most accounting software boasts networking
compatibility, but isolation is far more advisable. The
information contained in accounting software is sensitive and
could potentially ruin a business if it were to become public,
so it does not make sense to allow access by unauthorized users
by sharing across a network or an intranet. The accounting
software should have an encrypted password protection in place
to prevent casual access, and an automatic logoff feature to
prevent access in the case an authorized person forgets to log
off.
The check printer should also be isolated. In addition to
preventing unauthorized access, isolating the printer will
reduce waste of special MICR toner for printing documents other
than checks. Fresh MICR ink can be lifted from the surface of
check paper using cellophane (like Scotch) tape and applied to
another blank check, creating an indistinguishable – and
cashable – forged check. Isolating the printer helps prevent
inappropriate access to the finished printed laser checks. Since
it is very difficult to catch and prosecute this type of fraud,
preventative measures are wise.
Backup copy protocols should also be considered. If a check copy
is stored, it can be reprinted. A purge of backup copies should
be scheduled regularly.
One of the advantages to printed laser checks is that checks can
be printed on separate accounts with the right software. Some
companies have many different bank accounts, and it's easy to
make a mistake when using preprinted checks.
Vendor selection is the key to selecting the right package.
Components must be compatible all the way from software to MICR
ink. The computer, the software, the printer, the paper, and the
MICR toner must all work together to produce checks.
MICR printer ink has magnetic characteristics necessary for bank
processing. MICR font must also be used for both visual and
magnetic accuracy. MICR are the characters at the bottom of
every check that encode the routing number, account number, and
check number for use by the bank's equipment. Without this
proper coding, each check would have to be processed by hand – a
very expensive proposition.
When running a laser printing program, ongoing quality control
is an important verification. A visual inspection to be sure
that every line of the check is in its proper place should be
performed in the beginning of the check run, during the process,
and also at the end to insure that every check is properly
printed. Alignment and positioning can be verified by using an
MICR template.
Buying printed laser checks can save time, money, and
inconvenience. But proper procedures must be established to
avoid fraud at every level of the process. No one would leave a
bank envelope stuffed with cash out in the open and, by the same
reasoning, customer and banking information demand an equal
measure of protection. |
