Dealing w/ a Returned Check: Advice Needed!

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Discussion Overview

This thread explores various personal experiences and strategies related to dealing with returned checks in the context of Pampered Chef shows. Participants share their stories, feelings of discomfort, and methods for handling such situations.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant expresses discomfort about dealing with a returned check from a family connection, seeking advice on how to approach the situation.
  • Another participant suggests hand-delivering the check to the customer's bank and inquiring about procedures for recovering funds.
  • One participant mentions calling the customer to discuss the returned check and any associated fees in a business-like manner.
  • Several participants share their methods for handling payments at shows, including having hosts pay with a single check or credit card for all orders.
  • One participant recounts a stressful experience with a returned check for a large amount and the subsequent overdraft fees incurred.
  • Another participant clarifies that while overdraft fees due to insufficient funds are not the customer's responsibility, fees charged by the bank for a bounced check can be recovered from the customer.
  • One participant reflects on their experience with a similar situation involving auto insurance and the complications that arose.
  • Another participant notes that they have had no issues with checks since the initial problem and plans to avoid bringing it up with the customer.

Areas of Agreement / Disagreement

Views differ on how to handle the financial implications of returned checks, with some participants emphasizing the importance of recovering bank fees while others focus on maintaining relationships with customers.

Contextual Notes

Participants share a range of experiences, highlighting the emotional and financial challenges associated with returned checks in their business dealings.

Who May Find This Useful

Consultants who have faced similar issues with returned checks or are looking for personal experiences and strategies from peers in the community may find this discussion relevant.

laura062182
laura062182
Messages
26
I need advice on how to deal with a returned check! Ugh... I hoped this day wouldn't come, instead it happened at with my first show!:( The problem is, the customer is my brother's ex girlfriend's mom. Uncomfortable or what???? How do you guys deal with this situation?? Any advice will be useful. I know this is going to be completely uncomfortable for both of us, but I hate to just let $50.00 go! What should I do?
 
Hand carry it to her bank and present it there. If she does not have the funds to cover it, ask the bank if they have a procedure for you claiming the first $50 available - I can't remember what this is called all of a sudden! Shoot. Getting old is really getting to be obnoxious ...

And then I'd consider only taking a check from your host. All guests at my shows must either pay by debit/credit card or a check payable to the host. That very night, she writes me a check to cover their orders (or uses her debit/credit card) and I deposit that check the next business day. Usually it will have cleared by the time the show closes. That's the plan anyway.
 
Last edited:
Call the customer, tell her the check was returned, and ask her how she would like to cover her order plus whatever fee your bank charged you (mine charges $10).

Just keep it all about business.
 
Sandy,
Can you explain the host uses her debit or CC? Do you mean for the whole show?
I thought they couldn't put it all on one CC.
I just celebrated 13 years in the biz Friday and change comes hard maybe I just missed it!!
 
I accept checks from people at the show, but all outside orders pay the host directly. Then the host pays me with one big check or cc for her order and the outside orders. It's kind of a "middle of the road" approach and works well for me.
 
Teresa Lynn said:
Sandy,
Can you explain the host uses her debit or CC? Do you mean for the whole show?
I thought they couldn't put it all on one CC.
I just celebrated 13 years in the biz Friday and change comes hard maybe I just missed it!!
Click to expand...

Maybe I'll find out next week that you can't do that, but P3 accepted it. I simply entered the hosts CC # and her name as on the card on each individual order. If she wrote me a check, I entered my TPC card number on the finialize page.

Sometimes ignorance is bliss :) ... other times it can bite you in the rearend. :eek: We'll soon see which is the case, eh?

Man, won't that just stink if it doesn't work that way ... I think I'm calling my director now ...
 
I had a $300+ check returned. Thought I was going to die!! Normally there isn't another $300 just sitting around in my checking account. I called her and she apologized saying they had closed that account and she forgot to change checkbooks. It took her a week and a half to get the money to me. Needless to say I had to transfer money from my home checking account to cover it. Then I find out when my statement comes in that I was nailed for overdraft charges for checks that were paid. I was going to go back to her about those, but she has booked two more shows and has three shows that booked from her. Luckily no issue with checks. I never said anything to her about the overdraft fees.

This is the first time since I started that I have ever had a problem with a check being returned. I hope it is the only!
 
The overdraft fees that YOU incurred because you didn't have enough money are not her fault and you cannot ask her to pay those.

But any charge your bank socks you with because HER check bounced can be recovered. If I deposit a check in my account and it bounces, my own bank charges me $10 and I always get it back from the customer.

There is a big difference.
 
I had enough money in my account if her check wasn't returned. Her check was then returned, and I had checks go against my account in the meantime. The bank paid them, but charged me for each check it paid.

My bank charges $10.00 for the returned check fee, but then $33 per check paid when the account has insufficient funds.

She was the reason I had insufficient funds in my account.
 
I totally agree with you...
ChefJeniLobdell said:
I had enough money in my account if her check wasn't returned. Her check was then returned, and I had checks go against my account in the meantime. The bank paid them, but charged me for each check it paid.

My bank charges $10.00 for the returned check fee, but then $33 per check paid when the account has insufficient funds.

She was the reason I had insufficient funds in my account.
Click to expand...


I had the same situation happen to me with auto insurance. I had cancelled one company well in advance, and the owner of the ins agent called to be sure no auto debits would be coming out and not only did they still take an auto debit, but two came out so my checks bounced, 32.00 ea. and went against other checks. I took the letter of cancellation to the bank, but since it wasn't the bank's fault, so sorry. :( I"m about to close my accts with that bank.

Back to the original ?....I know some people just make honest mistakes, I was going to mention to try and get a show out of the deal, but sounds like that's already in the works. Luckily my banks down here only charge $ 4-$ 5 charge backs; but I don't usually have the extra funds in my acct to cover teh other stuff. The above ins. situation, the ins company would only refund me on the acct where I had my $$ come out for ins. I pulled other money from PC acct to clear and my PC went into overdraft, so I"m out :(

Good Luck.

Liz

IF it gets too bad, just accept cash?
 
She has hosted another show since then and I had no problem with checks. This was my first time having an issue. Other than loosing a little money, everything is o.k. I'm not going to bring it up to her. I figure between the 3 shows she is hosting and shows I book from hers, I will more than cover the overdraft fees I was charged.
 

Frequently Asked Questions

What should I do if I receive a returned check from a customer?

If you receive a returned check, the first step is to contact the customer to inform them of the situation. Politely explain that the check has bounced and ask if they can provide an alternative form of payment. It's important to maintain a professional tone to preserve the customer relationship.

Can I charge a fee for a returned check?

Yes, you can charge a fee for a returned check, but this must be communicated clearly to your customers in advance. Check your local laws regarding the maximum amount you can charge for a bounced check, and ensure that your policy is included in your sales terms.

How should I handle a customer who refuses to pay for a returned check?

If a customer refuses to pay for a returned check, try to resolve the issue amicably by discussing the situation with them. If they remain uncooperative, you may need to consider escalating the matter, which could involve sending a formal letter requesting payment or, as a last resort, seeking legal advice.

What are the best practices for preventing returned checks in the future?

To prevent returned checks, consider implementing a few best practices such as accepting only certified checks or money orders, verifying customer information before accepting checks, and offering alternative payment methods like credit cards or online payments. Educating customers about your payment policies can also help reduce the likelihood of returned checks.

Is there a way to track returned checks for better management?

Yes, you can track returned checks by maintaining a detailed record of all transactions, including the check number, amount, and reason for the return. Using accounting software can help automate this process and provide insights into your sales and payment trends, allowing you to manage your finances more effectively.

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