You may have heard about blank checks and blank check stock and thought that the two were the same. However, using a blank check and using blank check stock are two different things, that have different benefits and risks. Before trying to help your company save money and reduce check fraud risk, make sure to read this article.
Blank Checks
Having a “blank check” can mean a number of different things. The most prevelant of these is an actual check that is signed, dated and has all the necessary information to make a payment, without the actual cash amount. The payer will give the payee the blank check, entrusting them to write the right amount of money on the check and make the correct payment. For example, if an owner goes out of town for a few days and needs to pay bills on his storefront or to vendors, he may give an employee a blank check. That way, when the bills come, the employee can see how much the check needs to be made out for and write it in and send it to the correct person.
This is also a saying operating on the same idea. A person may promise to pay something large, like a car, for someone else, giving them a “blank check” until the amount has been paid off.
Lastly, you could say a blank check is one that hasn’t been signed, dated or written out yet, but still is a blank check. Harold Averkamp, CPA on accountingcoach.com says that utilizing these blank checks, or the blank checks where the amount of money isn’t specified, can be problematic for internal controls and must be secure at all times[1].
Blank Check Stock
Blank check stock is a bit different than a blank check. Blank check stock has nothing on it, except security feature paper where a check could be printed securely using MICR toner. The blank check stock can be printed on so that checks and check information like bank routing and account numbers cannot be stolen. Blank check stock doesn’t need to be secured in a safe room so that it can’t be stolen, nor does it pose potential security risks like the blank check with an approvers signature listed above.
Benefits and Risks
Using a blank check may seem beneficial – the money can move quicker and the company doesn’t lose any money waiting on transfers. With blank checks that are purchased by the company and waiting to be written on, it seems as though it would cost less for the pre-printed blank checks. However, although it seems fast and cost effective, it is extremely risky for a business. Extra money could be added to the blank check, and sensitive information can be stolen from blank checks.
Of the two, blank check stock is the least risky and best at providing a company with security and cost effective measures. Blank check stock is cheaper than pre-printed blank checks and is more secure as well. Usually blank check stock is printed on using check printing software that make sure payments and signatures are signed off by an approver.
For more information about blank check stock and how it can help your business be more secure, reduce check fraud and save money, go to www.Piracle.com. Piracle, a software company determined to streamline payment processes has developed Create-A-Check which allows companies to print their own checks safely and securely on blank check stock.
[1] http://blog.accountingcoach.com/what-is-a-blank-check/