Question

How does a bank verify the signature of its customers?

a. By the substitute check held by the bank for reference purposes
b. By the signature card filled in by the customer when the account is opened
c. By the signature provided in documents such as passports, ID cards, etc.
d. By the pin number provided by the bank with the ATM card

Answer 1

Banks typically verify a customer's signature by comparing it to the signature card the customer filled in upon opening the account. This signature serves as a reference for all subsequent transactions requiring signature authentication.

Step-by-step explanation:

To address the question of how does a bank verify the signature of its customers, most commonly, banks rely on the signature card that the customer fills out when they open an account. This card serves as a reference for the bank when verifying the authenticity of the customer's signature on checks and other documents. The other methods listed, such as using a substitute check, documents like passports or ID cards, or a pin number, are not typically used for signature verification in banking transactions. Banks maintain these signature cards on file and whenever a transaction such as a check is presented, the signature on the transaction document is compared to the one on the signature card to ensure they match.