Pearson New International Edition International pcl tp indd 1

FRONT OFFICE SEMANTICS
Check verification service:
Process of matching check writers with databases of acceptable and unac-
ceptable accounts to minimize the acceptance of bad checks.
Check guarantee service:
Service that ensures checks accepted by a merchant (e.g., hotel) that follows
specific procedures will be collectible.
A check verification service screens checks and check writers against databas-
es of open and closed checking accounts and writers of bad checks. When a guest
presents a personal check, the front desk agent typically uses a POS terminal (or
real-time Internet process) to check the service provider’s databases. Generally, if
the guest has a history of writing bad checks or has closed the account, the trans-
action will be declined. If not, the check is approved. Approval does not ensure
that the hotel will collect on the check, but a check guarantee service ensures
1. Confirm, by picture identification, that the name preprinted on the check is the same name as
the person presenting the check.
2. Note the form of identification (e.g., passport or driver’s license) used to verify the check
writer’s identity on the back of the check.
3. Ensure that the check
• is written out to the hotel,
• has the correct date,
• is written for the correct amount,
• has an identical numerical and written dollar amount,
• includes the address of the bank issuing the check, and
• is signed by the same person whose name is preprinted on the check.
4. Require that all checks include a telephone number of the check writer.
5. Develop specific policies for the acceptance of personal checks issued by out-of-town banks
because of difficulty of collection.
6. Establish a maximum amount for which a check can be written without preauthorization from
the check-issuing bank.
7. Use a check verification service.
8. Require the front office agent to initial the check to verify that all required procedures have
been followed.
9. Deposit all checks on a daily basis.
10. If checks are returned for nonsufficient funds and reasonable collection efforts are ineffective,
enlist the help of local law enforcement agencies.
FIGURE 12
Procedures for minimizing fraud involving personal checks.
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