On a transit check over $1,500, what must be done to cash?

On a transit check over $1,500, what must be done to cash?

• A. Not cashed unless approved by an officer; if approved, include the AEE and officer name and extension
• B. Cash only with branch manager approval
• C. Must be deposited to a business account
• D. Cash with endorsement only

Answer: (A)

When a transit check is large, extra controls protect the bank and the customer. The needed step is to obtain approval from an officer before cashing, and you must document who approved it by including the AEE and the officer’s name and extension on the transaction. This creates a clear paper trail and ensures someone with proper authority reviews high-value cashing, reducing the risk of fraud or errors. Other options skip this essential oversight or documentation, which is why they don’t fit the policy.

When a transit check is large, extra controls protect the bank and the customer. The needed step is to obtain approval from an officer before cashing, and you must document who approved it by including the AEE and the officer’s name and extension on the transaction. This creates a clear paper trail and ensures someone with proper authority reviews high-value cashing, reducing the risk of fraud or errors. Other options skip this essential oversight or documentation, which is why they don’t fit the policy.