What ID can I require when accepting a check?

Q. What information am I allowed to request from a customer when accepting a personal check? May I write down the customer's Social Security number?

A. A new state law which took effect January 1, 1998, prohibits a retailer from recording a customer's Social Security or credit card number on the face of the check (unless it's your own store's credit card) as a condition of accepting the check. You may still ask to see these documents to compare signatures and verify identity, as long as you do not record the numbers on the check. However, if your customers know the law, they might not appreciate being asked for such information.

Michigan Retailers supported the new law because it also gives retailers new legal standing to pursue bad-check passers in court. The legislation contains the first statewide standard for check acceptance, to provide uniform criteria for proving the identity of the check writer.

To protect yourself and establish prima facia evidence in court of the check writer, the law says you must record the following information on the check at the time of acceptance: name; address; home or work telephone number; driver's license, state identification card or military identification card number; and the initials of the person receiving the check, indicating that he or she witnessed the writer sign the check.

Retailers who violate the new law may be subject to a fine of up to $500. The business owner is liable for the violations of the store's employees.