I'm looking for a change order procedure for tellers to follow when filling change orders for local businesses. I'm concerned with the teller using an internal debit advice to the account vs. a signed check by the ATS of the company? The Br. Mgr. says they have always used the debit advice and that it would be inconvenient for the customer send a check since they call in the change orders.
Your help is greatly appreciated.

Many change orders are exchanges (i.e. nickles, quarters and singles for $20s). There are no entries to the account, but making sure the merchant is assessed appropriate Account Analysis charges is very important.

$ can only be taken from an account if authorized by the accountholder. The best "evidence" of authorization is a signed check, but that is not always convenient. A phoned in change order and a debit to the account with the receipt of the change signed for by the "runner" is a risk, but usually not very large. Is it worth hasseling the customer for a nominal amount?

Al

Thanks for the advice. The change orders can run as high as $50M. These are for large retailers, i.e. supermarkets, and large chain C-stores.

I see in your original post that you are concerned about the Tellers debiting the customers account. What concerns do you have? Would it be possible for the requesting company to fax or possibly email their requests? That would leave an additional paper trail for the transaction. Just my two cents.

My concern is that the bank does not have anything signed by an "authorized signer" on the account. This may help.
Thanks.

Well, I originally answered as though a "burger flipper" was going to wander in for $50 or so in change, not $50M.

You still have the "was it authorized" issue, but a mitigating factor may be that you can prove delivery. I would hope that such large orders are being delivered by armored car. You prepare the order (shipment) in double custody and seal the "bag". It is then signed for when delivered. If you can prove they got the $, then the lack of authorizing signature is not such a big issue.

Don't you have a armored car services agreement with the customer? That could detail the commecially reasonable procedures authorizing the change order. Since it is not like you are sending the order to someone other than the customer, reasonable standards would be much less than sending out a wire transfer.

Hope that helps.


Al