In Step 5 of the 6-step habit, what is required?

In Step 5 of the 6-step habit, what is required?

• A. Maker's signature and verification of a match with the customer or presence of a transit check
• B. Endorsement
• C. MICR line
• D. Date verification

Answer: (A)

In this step the focus is on validating the authority behind the item and how it’s being presented. You must verify the maker’s signature and confirm that the item matches the customer on file, or recognize when the item is a transit check and handle it accordingly. The signature check confirms the person who wrote the check actually authorized it, while matching it to the customer ensures you’re dealing with the right account and that the signer is authorized to transact. If the item is a transit check, you handle it with the proper transit procedures instead of treating it as a straightforward customer-presented item. This combination—maker’s signature plus proper customer match or transit status—is what Step 5 requires. Endorsement, MICR data, and date checks belong to other checks or steps in the process.

In this step the focus is on validating the authority behind the item and how it’s being presented. You must verify the maker’s signature and confirm that the item matches the customer on file, or recognize when the item is a transit check and handle it accordingly. The signature check confirms the person who wrote the check actually authorized it, while matching it to the customer ensures you’re dealing with the right account and that the signer is authorized to transact. If the item is a transit check, you handle it with the proper transit procedures instead of treating it as a straightforward customer-presented item. This combination—maker’s signature plus proper customer match or transit status—is what Step 5 requires. Endorsement, MICR data, and date checks belong to other checks or steps in the process.