Can a person cash/deposit a check that is a photocopy? My customer wrote out a check but then decided not to give it to the payee. The payee made a copy of the check and took it to her bank. They put a strip on the bottom and encoded it and processed it. When I contacted the other bank, they said this was ok since the payor had the intent to give the check to her. Is this allowed?????

How did the payee get the check? If the customer gave the check to the payee, then there's not much that can be done, since the check was properly issued and no stop payment order was placed.

However, if the the maker never actually gave the check to the payee, and the payee instead helped herself to the item, your customer may have a defense against her in accordance with UCC 3-105

A photocopy or a facsimile of a check is worthless without a warantee, i.e., a substitute check imaged through Check 21.