For businesses that still use paper checks for payments, check fraud remains a major risk. Fake or altered checks can result in losses of thousands or even millions of dollars. That’s why it’s so important to take steps to secure your check printing processes.
Using secure check printing software with built-in fraud protection features is one of the best ways to prevent check fraud and safeguard your business finances. Here are some key tips for maximizing check security with check printing software:
Controlled Check Stock Access
Quality check printing software allows you to strictly control who has access to your check stock inventory. The software should require secure logins and enable you to grant printing permissions only to approved personnel. This prevents unauthorized individuals from being able to print checks.
You’ll also want software that gives you full visibility into check stock usage. Look for features that track every check printed, who printed it, and what payments the checks were issued for. This creates an audit trail to quickly identify if any checks were printed illicitly.
Secure Document Storage
Storing blank check stock and already-printed checks in a secure location is critical. Check printing software that integrates secure cloud document storage can help eliminate unsecured local storage of these sensitive documents.
With cloud storage, blank check stock files are encrypted and can only be accessed through the software after authentication. Completed checks are uploaded directly to the secure storage after printing. This prevents theft or unauthorized copying of checks from local hard drives.
Watermark and Microprint Protection
Modern check stock comes with chemical resistance and other built-in security measures. But check printing software adds another essential layer of fraud protection through watermarks and microprint lines.
The software should allow you to add customized watermarks containing your company name, logo, and other identifiers to the check background. These watermarks are extremely difficult to reproduce, immediately identifying a copied check as fraudulent.
Microprint is another anti-fraud feature to look for. This prints tiny text, much too small to be reproduced by copiers or printers, onto the check. The microprint lines contain phrases like “VOID” or “NON-NEGOTIABLE” that only become visible when examined under magnification.
MICR Printing Security
Every legitimate business check must have the proper machine-readable MICR line across the bottom that allows the check to be processed electronically. Attempting to recreate this line is one of the ways check counterfeiters are frequently caught.
Your check printing software needs to be able to encrypt and securely print authentic MICR lines that will be accepted by banks. This prevents rejection of legitimate checks and deters counterfeiters from being able to produce fake checks your bank will process.
MICR protection is typically offered as a built-in feature or add-on module for check printing software. Look for software certified by Check Payment Systems Association (CPSA) and Magnetic Ink Character Recognition (MICR) standards.
Sequential Number Tracking
To identify missing checks that may have been stolen, check printing software must provide strict sequential tracking of check numbers across all bank accounts. The software should require entering the next check number in the sequence before allowing that check to be printed.
If a gap appears in the sequential numbering, the software should flag this for investigation. You’ll then be able to quickly determine if any checks were legitimately voided and shredded or if there is a potential fraud issue with missing checks.
Manual and Electronic Signature
Security Just as check numbers must be tracked, check printing software also needs robust signature security capabilities. This allows only authorized signatures – either manually written or electronically applied – to be printed on checks.
The best check printing software gives you full control over approving acceptable signature files and applying them in a secure manner during check production. The software should also be able to seamlessly integrate with third-party digital signature solution providers for enhanced authentication protocols around signatures.
Positive Pay and Payee Positive Pay
Among the most powerful forms of check fraud prevention are Positive Pay and Payee Positive Pay services offered by most banks. These services enable you to securely upload check issue files from your accounting systems or check printing software to compare against any checks being cleared.
Check printing software with native support for Positive Pay allows you to automatically create and transmit secured check issue files containing all required data on every check printed. This gives your bank the information needed to flag any discrepancies between issued checks and items being cleared.
With Payee Positive Pay, the check issue files also contain payee name details. So the bank can additionally validate the payee name before clearing any checks, blocking any attempts to alter the payee.
Finding check printing software with built-in Positive Pay file creation helps streamline this critical fraud prevention process as part of your normal payment cycle.
Award-Winning Check Fraud Prevention
Following the tips above and selecting check printing software with robust security features can significantly reduce your exposure to costly check fraud scenarios. One software solution standing out for its check security capabilities is Paramount WorkPlace, which has earned numerous awards for protecting against check fraud.
Some of Paramount WorkPlace’s secure check printing features include:
- Secure cloud storage of check stock files and printed checks
- CPSA and MICR-certified secure MICR line printing
- Customizable watermarks, microprint lines, and secure overlays
- Strict sequential check number control across all accounts
- Secure electronic and digital signature printing
- Positive Pay and Payee Positive Pay issue file creation
- Controlled user access and tracking of all check stock usage
With over 30 years in the business and millions of checks printed through their software, Paramount has consistently focused on prioritizing fraud prevention as a core part of their check printing solutions. Their WorkPlace platform provides the robust check security tools and controls that businesses need to protect against the risks of check fraud.
Conclusion
If you’re looking for check printing software to secure your payment processes, be sure to carefully evaluate all available security capabilities. Selecting a solution with proven fraud prevention features can save your business from devastating losses and give you peace of mind around this historically risky area.