Customers Changing Banks Can be a Warning Sign Of Potential Credit Problems!
Over 95 million Americans have never switched bank accounts in their banking lives. It's more of an inconvenience when competing banks offer such similar, or even identical services. When dealing with a customer or debtor that has recently changed banks, it's best to dig into the question and find out why. There will be times when it is a valid reason such as poor customer service, relocation or a new job. However, there will also be times when it is due to credit problems or fraudulent activity.
Payments from a customer via personal checks or credit cards, especially from a new bank are very risky. You never know 100% if a customer has money in their account or not. It is both time-consuming, and expansive when checks bounce. According to a recent survey "approximately 90% of bad checks come from bank accounts that are less than one year old." To protect your business, keep an eye out for check numbers lower than 125 and never accept post dated checks.
Bella Debo