Business Account Deposits
Question: At your security workshop you talked about not permitting someone to deposit funds into another person's account without the knowledge of the account owner. With a commercial account, such as a local convenience store, grocery store, or fast food business, who is authorized to make deposits into the business account? Should we require the business to authorize certain people to deposit money and verify identification?
Answer: When dealing with commercial accounts, it is assumed that if a printed deposit ticket is used, the person making the deposit is authorized. Indeed, if the night depository is being used, we have no idea who actually drops the deposit into the slot. The other thing to keep in mind is that if the over-the-counter deposit has been going on for some time - same people making deposits and no complaint from the customer - the negotiation is ratified by being "grandfathered." Taking money OUT of the account will cause you more problems in commercial transactions.
Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 8, 8/05
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