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This Story Behind Signature Card Will Haunt You Forever! | signature card

A signature card is simply a legally-binding document which a financial institution keeps on file containing the personal signatures of the following individuals: the bank, the issuing financial institution, and a particular individual who has been given authority by the bank to sign for checks. If there is an error in the check, the individual can challenge it with his or her signature. If the signature on the check matches the signature on the document, then an admission of guilt might be made by the issuing bank, forcing the erring individual to repay the funds. If the signature on the document is different from the actual signature on the document, then there might be some other fraudulent means by which the check could have been dishonored.

For example, if an individual's check is for a particular amount and he signs it with his name, but it accidentally ends up having his signature instead, then this is grounds for a challenge under the law. The same thing goes for checks that have insufficient funds: if an individual signs the check but does not have sufficient funds in his account to cover for the payment, then he must sign the document again. In cases like these, the bank will require an admission of guilt.

To avoid situations such as the one above, banks employ “specimen signatures”. Specimen signatures are used when individuals are asked to sign checks and their names do not match the signature on the document because they are unique. The banks know that such individuals do not own bank accounts. In such cases, instead of asking for a specific signature, the bank verifies the signature of another person, called the “specifier” to make certain that the signature on the document is really that of the named individual. The bank then uses a code known as the “instruction number” to determine which individual is authorized to sign for checks drawn by that person.

Such verification is done in order to avoid fraudulent activities. Such activities, which include forgery, embezzlement, and the like, may be committed using fake signatures. Forging bank checks that have genuine bank signatures can be very difficult to do, which is why the use of specimen signatures is important.

A signature card has the ability to simplify many business procedures. Instead of having to complete various procedures when processing checks or making payments, business owners simply have to attach their signature cards to the payment instruments they issue. They can also attach their signature cards to checks and purchase other payment instruments from the bank. There is no need to go through lengthy procedures when issuing checks or making payments. An individual can sign on his own anytime, anywhere.

To process checks quickly, some banks use a machine that imprints the words” Signature Card Here” or “Check Signature Tag Here”. These phrases are visible to the person signing the checks. This way, the entire transaction between the merchant and the bank is made easier. The words on the signature card do not have to be printed on the actual paper. They can be engraved or written on plastic, stone or wood.

Sometimes, the signature card serves as a security pass. In this case, the individual signs the check or the document in front of a third party. On the other hand, sometimes the signature card does not have any security feature. The document that is being presented may not need to be signed on the actual paper. It could just be a magnetic strip, which the bank uses to store information about the holder of the signature card.

Another use of signature cards is to verify the information contained in the electronic check. The bank account will usually display the account number and the balance. A signature card will not work if the balance and account number are different. In addition, this device cannot be used in conjunction with an ATM.


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