What is maker-checker (four-eyes) and why lenders use it
A simple control that prevents the most expensive mistakes and frauds.
Updated 2026-10-20
Definition
Maker-checker is a control where the person who prepares (makes) a sensitive transaction cannot be the person who authorises (checks) it.
Where it applies in recovery
- Settlement discounts and repayment arrangements
- Write-offs
- Payment confirmation, reversal and refunds
- Balance adjustments
Good implementation
- Enforced by the system, not by policy documents.
- Authority levels: larger discounts need higher approvers.
- Reasons captured on both steps.
- Immutable audit trail showing who proposed, who approved and when.