Merchants may charge a fee for a returned check. KRS 514.040 (4) (b). You must give notice of your policy of charging this amount in a conspicuous place, usually by posting a sticker that is provided by the County Attorney.
How are the fees collected and who pays for them?
The check writer pays with a deposit slip that is sent to them with their letter. The merchant will be reimbursed by Advent. The merchant will receive the amount of its check and the merchant fee.
If someone forges the account holder’s name, the account holder cannot be prosecuted for a cold check. The person who made the check would be prosecuted for forgery and theft by deception. For this reason, it is very important that persons taking checks verify the identity of the person from whom they are taking a check.
*Have “pre-approved” check cashing lists where persons wishing to pay you by check have filled out an application and you have verified the information on the application and DO NOT TAKE CHECKS FROM ANYONE NOT ON THE LIST!
Always verify the identity of the person presenting the check by photo i.d.;
Make certain that the person standing in front of you is the account holder;
Get a current address and telephone number;
Obtain a social security number, drivers’ license number and date of birth;
If you know who presented the check (i.e. video or eyewitness familiar with the check writer) please contact law enforcement to report.