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HOW
TO OBTAIN Thumbprint Signature
PADS AND OTHER MATERIALS
All
merchants must place their orders through DBA which will respond
to orders from participants. An order form is included with
this information.
MOST
FREQUENTLY ASKED QUESTIONS
The
following is a summary of some of the most frequently asked
questions about the Thumbprint Signature
program from participants and other interested
parties.
How
does my business participate and order supplies?
Merchants
can join the program any time simply by contacting the Delaware
Bankers Association (DBA) at 302-733-7452. Once a business
is signed up, DBA is able to fill and ship the orders on the
same day received; however, please allow time for shipping.
Will
the fingerprint actually be visible on the check?
Yes,
the fingerprint will be immediately visible on the check so
that an employee can tell if there is a good impression. The
"inkless" feature refers to the fact that the fingerprint
pad will not leave a residue on the customer’ s hand.
In addition, the print is clearly visible on a photocopy or
microfilm of the check.
Will
the inkless fingerprint pad fit through the pneumatic tubes
in drive-through businesses?
Yes,
the pad is only about two inches in diameter and should easily
travel through the pneumatic tubes in drive-through businesses.
Can
a business require a fingerprint on a government check?
Yes,
both businesses and banks can require a fingerprint when cashing
a government check for customers and non-customers, provided
that the business or bank has not entered into an agreement
with a regulator or other government entity under which it
agrees to cash government checks for non-customers on the
same terms as it cashes checks for its regular customers.
Where
are the thumb prints stored, and is a database maintained?
The
Thumbprint Signature check
travels through the normal channels of the business and the
bank it uses, just as any check would. The checks are not
segregated and no database is maintained. The thumb printed
checks are used by law enforcement agencies only in the case
of check fraud.
What
should I do if I suspect check fraud?
Merchants
who suspect check fraud should follow established reporting
procedures regarding known or suspected fraudulent transactions,
including contacting local law enforcement personnel, as well
as the FBI.
What
about the angry customer?
The
program has met with only minimal public criticism (less than
1% of customers refused to provide thumbprints in the pilot
program). If a customer objects to providing a thumbprint,
you have right to refuse the transaction and suggest that
other merchants that may accept checks without the
Thumbprint Signature since not all businesses
are participating in the program at this time. Although it
is best if business personnel avoid engaging in a discussion
of the legalities of the program, you should be assured that
the request for a thumbprint of a customer is not a violation
of either federal or state laws.
Must
the business obtain a fingerprint on every customer?
Each
business participating in the Thumbprint
Signature program is advised to have written
policies and procedures governing how the program will be
used. Although a business has some discretion in establishing
its policy, it is critical that the policy is applied
consistently to avoid allegations of discriminatory treatment.
For example:
- If
it is the policy of a business to require a fingerprint
on all customers cashing a check or using a check to purchase
goods or services, the policy must be applied consistently.
Business personnel should NOT be authorized to waive or
modify the policy.
- A
business can establish a dollar threshold below which it
will not require a fingerprint. Again, the policy
must be applied consistently. Business personnel
should NOT be authorized to waive or modify the policy.
- A
small town business can choose to fingerprint only those
customers living outside their county if the boundaries
of the county are explicitly defined in the retailer’s
policy. A subjective determination by store personnel of
whether a particular address is in the county should be
avoided. The policy must be applied consistently. Retailing
personnel should NOT be authorized to waive or modify the
policy.
These
are just a few examples of the way a business can structure
its policy on the Thumbprint Signature
program. Generally, the simpler the policy, e.g.,
requiring fingerprints on all customers, the easier it will
be to carry out. In evaluating your policy, be mindful that
unlawful discrimination can occur in three ways:
1.
When a policy is discriminatory on its face; e.g., it only
applies to individuals within the legally protected classes;
i.e., race, color, religion, national origin, sex, or marital
status.
2.
When a policy is not discriminatory on its face, but is
applied in a discriminatory manner; e.g., the business will
not cash checks or accept check for payment for goods and
services from people who live in certain communities; however,
the majority of the people living in those communities are
in one of the protected classes.
3.
When a policy is neither discriminatory on its face nor
applied in a discriminatory manner, but has the effect of
discriminating against a protected class; e.g., requiring
an excellent credit report for all job applicants; however,
it may have a discriminatory affect against women and minorities
since these protected classes historically have worse credit
histories than non-protected classes.
Wouldn't
This Be Considered Prejudicial To Certain Groups?
No.
Various regulatory and legal groups have determined that this
program is not a violation of CRA or any other regulatory
issues.
The
Thumbprint Signature would
be required of all customers cashing or using check for purchase
of items above a certain pre-determined amount that is consistently
followed. An exception would be the individual who
is physically challenged and unable to provide the fingerprint
signature.
For
more information about the Thumbprint
Signature program,
please contact Susan Highfield at the DBA at 302-678-8600
or at
Susan.Highfield@debankers.com
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