pre signed cheques.

pcf!bacs · Posted: Thu Nov 11, 2004 6:29 pm Post subject: pre signed cheques.

Just a quick question, does anybody use pre-signed cheques in their payroll or bureau?

Thanks,

Alex.
_________________
PCF have been established for 21 years are are experts with the transfer of secure data, laser cheque printing and BACS, as well as a host of other solutions and services.

Visit our website and take a look!

Hugo Fair · PayPerShop Regular Joined: 22 Jul 2004 Posts: 75

This is a control issue, not just a matter of trust.

Any security audit (mandatory in local government, education, etc and sensible for everyone else) would immediately fail such a procedure.

The logic is that the same person (or group) should not be in a position both to generate the cheques (or indeed BACS file) and to authorise the payment. This used to be known as the 'two keys' rule, in that the two key-holders would have to collude to perpetrate any fraud.

If, despite all this, the person generating the payroll cheques IS allowed to authorise payments - then he or she should be an authorised signatory for the cheques (potentially subject to an upper limit). In this case, the cheques could be pre-signed so long as there is a stringent security policy restricting access to them to nominated keyholders ... but isn't this going round in circles?

I have never heard of anyone wanting a bureau to offer this service. If they want this, they should instead be considering authorising the bureau to make BACS payments (direct from their account).

Hope this helps.

Stewart · Posted: Mon Nov 15, 2004 3:01 pm Post subject:

We have done this in the past for some clients, and currently do this.

pcf!bacs · Posted: Fri Nov 19, 2004 1:03 pm Post subject:

I have just had an update from APACS and it seems that pre signed cheques are to be phased out by the end of next year for security reasons.

If you want any further details let me know and I will put my friend in contact as he understands the requirements better then myself.

Thanks for your replys.

Alex