How to verify a check before you cash or deposit it

Why verifying a check matters more than it used to

Paper checks are shrinking as a share of payments, but check fraud is not. FinCEN reported that banks filed more than 680,000 Suspicious Activity Reports for check fraud in 2022 — nearly double the year before — driven by mail theft, check washing and cheap high-quality printing. When a counterfeit or altered check is cashed, the person who handed over the money almost always eats the loss.

For a check cashing store the exposure is immediate: you paid out cash. For a business that deposits a customer's check, it's delayed: the deposit posts, the funds become "available" under Regulation CC, and then the check is returned unpaid days or weeks later and your bank debits the amount back.

Step 1: Inspect the physical check

Start with the paper. Legitimate checks are printed on security stock and carry features that are hard to fake with a laser printer:

• Perforated edge. Most checks are torn from a book or a business stock and have at least one rough, perforated edge. A check with four clean-cut edges deserves a closer look.
• Microprinting. The signature line on most checks is actually tiny text ("AUTHORIZED SIGNATURE" repeated). Under magnification it should read as letters; on a photocopy it becomes a blurry line.
• Watermark and security icon. Hold the check to the light for a watermark. Look for the padlock icon near the signature line with a legend on the back describing the security features.
• Alterations. Compare the ink and font on the payee line and amount box with the rest of the check. Look for shiny or discolored patches (a sign of chemical washing), erasures, or a written amount that doesn't match the numeric amount.
• Check number. The check number in the top-right corner should match the last group of digits in the MICR line at the bottom. A very low check number (under 200) on a personal check means a brand-new account.

Step 2: Validate the routing number

The nine-digit routing number on the left of the MICR line is the single most useful thing on the check because it can be verified objectively. Three checks matter:

1. Does it pass the ABA checksum? Every valid routing number satisfies a formula: multiply the digits by the weights 3, 7, 1, 3, 7, 1, 3, 7, 1, add them up, and the total must be divisible by 10. A number that fails is simply not a routing number — no bank has it.
2. Does it exist in the FedACH directory? Passing the checksum is not enough. Roughly one in ten checksum-valid numbers is assigned to a real institution. The Federal Reserve's FedACH participant directory is the authoritative list.
3. Does it belong to the bank printed on the check? Counterfeiters often print a real bank's logo with a routing number from a different bank. If the directory says "Wells Fargo" and the check says "Chase," stop.

We cover the mechanics in detail in Routing number validation: how to verify a routing number on a check.

Step 3: Match the ID to the payee — and to the person

Ask for a government-issued photo ID and compare three things: the name on the ID to the payee line, the photo to the person in front of you, and the ID itself for signs of tampering. Record the ID number on the back of the check or in your system. Fraudsters using stolen checks frequently present a real ID with a name that almost matches the payee — "Jon" vs "John," a missing middle initial — and rely on a busy clerk not noticing.

If your volume justifies it, biometric ID verification (scanning the ID and matching a live selfie to the ID photo) removes the judgment call entirely.

Step 4: Call the issuing bank the right way

Calling the bank to confirm the account is open and funded is still a valid step — but only if you call the right number. Never use the phone number printed on the check. Counterfeit checks routinely list a number that rings through to an accomplice who cheerfully confirms the check is good.

Instead, look up the bank's main number on its official website and ask the branch or the "check verification" line whether:

• the account is open and in good standing,
• the check number and amount look consistent with the account's activity, and
• there is a stop payment on the item.

Many large banks have automated check verification lines that confirm whether an account has sufficient funds for a specific check number and amount at that moment. Note that this is a snapshot; funds can leave the account before the check is presented.

Step 5: Know the limits of "wait for it to clear"

If you're depositing rather than cashing, it's tempting to deposit the check and wait. Understand what you're waiting for. Under federal Regulation CC, your bank must make deposited funds available on a schedule — typically the next business day for a portion and within a few business days for the rest. Funds being available does not mean the check is good. The paying bank can return a counterfeit or altered check well after availability, and the deposit will be reversed.

If you have any doubt, the honest answer is that waiting does not protect you. Verification before acceptance does.

Step 6: Run it through check verification software

Everything above takes a trained person several minutes per check and still depends on judgment. Check verification software does the same work in one pass and returns a decision:

• OCR reads the payer, payee, amount, date, routing, account and check number — no typing.
• Routing validation runs the checksum, checks the FedACH directory, and compares the bank name to the check.
• Fraud analysis scores tampering, font inconsistencies, missing security features, and duplicate presentments across your history.
• OFAC screening checks the payer and payee against sanctions lists.
• ID match compares a government ID and selfie to the payee.

The result is an Approved, Review, or Not Recommended decision with a fraud score and the evidence behind it. Here's how Check EFI's pipeline works step by step.

The 60-second counter checklist

Frequently asked questions

Check EFI TeamWe build AI check and ACH verification software for check cashing stores, ACH originators and payment processors. Talk to us about your workflow.