viewing a scanned NSF check

[kskinne]

I work for a business operating in the state of Iowa. We occasionally receive non-sufficient fund checks from customers. Assuming that the check does not clear the bank successfully if we re-run it, what we would like to do is rather than keep a file with the NSF checks, we would like to scan a copy of the check to an image file, then attach the image to the customer's account in our billing system. From there our customer service reps can view the document if they have the customer's account open. This way if there are questions regarding the NSF check or if the calls in to discuss, everything is right there for them to view. Having this image on their account obviously makes the bank account number and routing number on the check readily viewable as well.

Is there anything that legally prevents us from doing this with the customer's check? We do have all our employees sign a confidentiality agreement because of other private customer information they have access to through our billing system, and they sign an agreement stating they will keep that information they have access to confidential as a condition of employment.

Thank you in advance for your help, if you need me clarify or supply more info please let me know.

Kevin

 

[TigerD]

While I can't speak to legalities, a number of business scan every check presented. For example, Dell Financial Services, the finance arm of Dell Computers, scans every payment made. It is an invaluable resource for collections. Having experienced that, I would definitely do it.

DC

 

[kskinne]

Thanks for your reply debtcollector` - while we do not scan and save every check presented we do save all of those that are returned NSF. and while I think we are safe doing this, I want to make sure that we are safe in making this information available to all of our CSRs. will the agreement they sign to keep a customer's private information private, protect the company from liability in the event that one of those CSRs took the customer's banking info and tried to use it?

Thank you
Kevin

 

[Some Random Guy]

Regarding privacy concerns and safeguards:
According to the guidelines for VISA, credit card numbers stored by merchants should be stored encrypted on physically secure servers, should only be displayed in plain text when there is a legitimate business need, and should have all access to them automatically logged in a separate read-only file or table. Or at least that's all I remember from their 50 page security guide.

Those are best practices, secure your system as you see fit. But regardless, people who create fake checks against accounts known to have NSFs aren't that bright.

will the agreement they sign to keep a customer's private information private, protect the company from liability in the event that one of those CSRs took the customer's banking info and tried to use it?

In today's US legal system, you could still be found liable even if you did background checks and routinely polygraphed your employees. Even if you did prevail in a lawsuit, you would likely spend thousands on lawyer fees.

 

[kskinne]

thank you for the info, i'll keep that in mind, and good point - anyone that wants to try and get some money will probably be better off getting it from someone that actually has money in the account

thanks
Kevin

 

[Veronica1228]

thank you for the info, i'll keep that in mind, and good point - anyone that wants to try and get some money will probably be better off getting it from someone that actually has money in the account

thanks
Kevin

I suggest you contact your Relationship Manager or Business Banker at your bank. A few banks I've worked at offered products that would allow you to receive and send information (such as returned checks or remittances) electronically. If your account fees are analyzed the cost to your company could be minimal. This would mitigate any security concerns you might have regarding sending information electronically.