Dealing with Bounced Checks: Tips for Managing Money in Your Home-Based Business

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Discussion Overview

This thread discusses experiences and strategies related to managing bounced checks in a home-based business, particularly among Pampered Chef consultants. Participants share personal anecdotes about dealing with bounced checks, payment methods, and the implications of these financial issues on their business practices.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Debate/contested

Main Points Raised

  • One participant, identifying as a consultant, has dealt with bounced checks twice in five years and expresses frustration over the timing of deposits and notifications.
  • Another participant shares that they do not have guests make checks out to the host, preferring to take checks to the bank the day after the show, and notes a decrease in bounced checks due to increased debit card usage.
  • One consultant mentions that they encourage credit card payments and have had minimal issues with bounced checks, stating that most guests have made good on their payments.
  • Several participants suggest offering incentives for using credit/debit cards to reduce reliance on checks.
  • One participant recounts a situation where they cashed checks at the bank of the issuer, noting that this approach can help avoid insufficient funds issues.
  • Another participant shares their experience of having bounced checks from relatives, leading them to verify funds before cashing checks.
  • One participant discusses a situation involving a declined credit card payment and expresses uncertainty about the ethics of re-running the card without prior notice to the customer.
  • Another participant raises concerns about the ethics of running a customer's card for a previous bad payment without warning.

Areas of Agreement / Disagreement

Views differ on the best practices for handling checks and credit card payments, with some participants advocating for cashing checks at the issuer's bank while others prefer to avoid making hosts look like a hassle. There is no clear consensus on the ethics surrounding re-running credit cards for previous debts.

Contextual Notes

Participants share a range of experiences, indicating that the handling of bounced checks can vary widely based on personal practices and local banking options.

Who May Find This Useful

This discussion may be useful for Pampered Chef consultants looking for insights into managing financial transactions and dealing with payment issues in their home-based businesses.

Ok, is there anyone who knows this person (past host, friends at party that she bought the product) that you can contact to try to get in touch w/ her?
If so, try that route and give her a call, or better yet, send her a letter (certified) explaining that after all these months you felt it necessary to receive payment for the products that she took and promised to pay for, but never did. If it is weighing on you that much. If there is no way to reach her, I'd let it go until she got in touch with YOU. Was it a debit card out of checking or a credit card? I can't remember if you stated that.
 
I handle bounced checks like Beth stated above, not accusing them of having no money and giving me a bad check but "bank error", this has only happened to me about 3 times. But still each time is annoying and I never am 100% I am going to get my $$...right now it's 50/50...first one--never recv'd the $$, second -got my $$ plus bank fee, third- i'm actually still waiting on...let's keep our fingers crossed..she's is supposed to be sending the $$ plus bank fee (which luckily for me my bank only charged $7!!!)
I must say I LOVE MY PC BIZ :) but this is definately not one of my favorite parts!
Good luck Carolyn getting your $$ or products this weekend...I know this issue has really made you see RED!
 
chefsteph07 said:
Ok, is there anyone who knows this person (past host, friends at party that she bought the product) that you can contact to try to get in touch w/ her?
If so, try that route and give her a call, or better yet, send her a letter (certified) explaining that after all these months you felt it necessary to receive payment for the products that she took and promised to pay for, but never did. If it is weighing on you that much. If there is no way to reach her, I'd let it go until she got in touch with YOU. Was it a debit card out of checking or a credit card? I can't remember if you stated that.
Click to expand...

It was a credit card.
 
Well then I really wouldn't worry much about it...
Wait and see if she contact you..I doubt she will!

Carolyn, good luck w/ the customer this weekend if she shows up...
We really do need to start "encouraging" credit cards or debit instead of checks. At least that way we have the number to try to keep getting the payments...
 
Is this a dumb question? How do you charge someone's card for the products after the show has closed? I do have baby brain and a lack of sleep..so if the answer is obvious and I am slow..please forgive me...but seriously how do you?
 
You just call H.O. and they will do a "switch payment" Charge their card and credit back to you on your PC debit/credit card.

I personally think you should charge them. They authorized you to charge them. They said they would pay you. You contacted them and attempted to contact them multiple times. They disappeared. You have the legal right to do that. I can guarantee that if you can't get a hold of them now they will surely get a hold of you after they are charged! LOL! DO IT! We are not in the business of spotting people money to cover their money issues! Let us know what you decide!
 
smspamperedchef said:
You just call H.O. and they will do a "switch payment" Charge their card and credit back to you on your PC debit/credit card.
I personally think you should charge them. They authorized you to charge them. They said they would pay you. You contacted them and attempted to contact them multiple times. They disappeared. You have the legal right to do that. I can guarantee that if you can't get a hold of them now they will surely get a hold of you after they are charged! LOL! DO IT! We are not in the business of spotting people money to cover their money issues! Let us know what you decide!
Click to expand...

Thanks Sharon, I neve knew that. I don't usually have credit cards decline, maybe once and I can't remember how we resolved it..I think they just gave me another card. But this is good info to know!
 
  • Thread starter
  • #38
smspamperedchef said:
You just call H.O. and they will do a "switch payment" Charge their card and credit back to you on your PC debit/credit card.

I personally think you should charge them. They authorized you to charge them. They said they would pay you. You contacted them and attempted to contact them multiple times. They disappeared. You have the legal right to do that. I can guarantee that if you can't get a hold of them now they will surely get a hold of you after they are charged! LOL! DO IT! We are not in the business of spotting people money to cover their money issues! Let us know what you decide!
Click to expand...

This is how I ended up in this current mess. She gave me a useless check. The show was already processing - I called HO and had them change her payemt to charge card -- and her card was declined, too :(
 
dannyzmom said:
This is how I ended up in this current mess. She gave me a useless check. The show was already processing - I called HO and had them change her payemt to charge card -- and her card was declined, too :(
Click to expand...

I would just keep trying to charge them each Friday until it goes through
 
Carolyn, I hope you get your money, ASAP, and I hope you get a long break from this sort of thing happening to you again. It would be nice if you never had to deal with this again.

Winnipegk, if HO will run the card, then have them run the card. It isn't unethical if she gave you the card number IMO.
 
I had a show last month with 2 people that bounced checks. I was able to get a hold of them and kindly asked them to pay the bank fee. Luckily I was able to get the money before the products were delivered.

I would have the host hold onto the stuff until you get your money, or even better get it off her. Then you can hand it over when you get the cash.

Good Luck!
 
BethCooks4U said:
I always know that all the checks cleared before I have to pay the CC bill
Click to expand...

Okay all you people in the field of banking, my understanding (according to my bank several years ago) is that it takes weeks before we know if a check actually has cleared. Perhaps now that we have more electronic transactions this has changed but if not, I think we should be aware. I've only had two checks bounce on me in my nearly 500 shows/orders but, it was at least a week after the fact that I became aware that they did not clear.

Has this changed? :confused:
 
dannyzmom said:
I have had to deal with bounced checks twice in my almost-5-years in this business.

Both times it ticked me off something fierce...

So...let's talk money.
Home office encourages us to close shows within 3-4 days, right? Well, if I have a Friday night show, the checks get deposited on Monday. If there are NSF on any of those checks, I will not know until the FOLLOWING Friday. So, am I supposed to float $ for these people whom I don't even know??

There is buzz about having the guests make checks out to the host and getting one check from the host...I agree with Beth on this one. I don't want my whole show bouncing.

What are everyone's thoughts on how to handle this issue?
Click to expand...

I just co-hosted a Princess House show, and the host had people all write their checks to us instead of her, and all I can say is that it was a big hassle! Hosting a show should be easy and risk-free! You know? I did not enjoy hosting for PH and probably won't again. The way I see it, it is my responsibility (as a consultant) to handle the money and I would never want to bring my host into financial issues unless it were ane extreme circumstance. I also tell everyone at the end of the show that I prefer credit card payment but will also accept cash or check. Since I have started doing that, I barely get any checks at all.

The decision is up to each consultant how they would like to handle the money, and the decision my be different for each of us, but I prefer to handle the finances in all aspects.
 
Last edited:
chefjeanine said:
Okay all you people in the field of banking, my understanding (according to my bank several years ago) is that it takes weeks before we know if a check actually has cleared. Perhaps now that we have more electronic transactions this has changed but if not, I think we should be aware. I've only had two checks bounce on me in my nearly 500 shows/orders but, it was at least a week after the fact that I became aware that they did not clear.

Has this changed? :confused:
Click to expand...

Exactly why I use the PC credit card to pay for my shows - it gives me more time to know that all is cleared before it comes out of my checking account.
 
BethCooks4U said:
Exactly why I use the PC credit card to pay for my shows - it gives me more time to know that all is cleared before it comes out of my checking account.
Click to expand...

Thanks Beth. I thought you meant that you knew for sure those checks had cleared.
 
I took a lot of gold jewelry I haven't worn in years to a pawn shop buying gold & got $675. For things I couldn't tell you the last time I wore them I think that is pretty good.
 
Carolyn, did you see that guest this weekend that owed you???
 
  • Thread starter
  • #48
chefsteph07 said:
Carolyn, did you see that guest this weekend that owed you???
Click to expand...

Yes...she paid me the $ owed from the check (in cash) plus the bank fee. She apologized up, down & backwards, too.
 
Well, the card declined so it doesn't matter.
 
  • Thread starter
  • #50
You mean when you tried to re-run it?
 
Yeah. I just tried it and it declined. I think it was a mistake to do that too because now my show is on hold and I needed it for sell-a-thon.
 
As long as it's resolved by the deadline HO gives you, it'll still count for Sell a Thon.
 

Frequently Asked Questions

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

If you receive a bounced check, first contact the customer to inform them of the issue. Politely ask if they are aware of the situation and request an alternative payment method, such as cash or a money order. It's important to maintain a professional tone to preserve the relationship.

How can I prevent bounced checks in my home-based business?

To prevent bounced checks, consider implementing a few strategies: require payment upfront for orders, accept only certified checks, or use electronic payment methods that provide immediate confirmation of funds. Additionally, you can establish a policy for handling checks, including a verification process for larger amounts.

What are the legal implications of accepting bounced checks?

Accepting a bounced check can have legal implications, including potential fees and the need for collection efforts. Depending on your location, you may be able to charge a fee for the bounced check, but it's important to check local laws regarding this practice. If the issue persists, you may need to consider legal action or involving a collections agency.

How should I handle repeat customers who have bounced checks?

For repeat customers who have bounced checks, it's essential to approach the situation delicately. You may want to have a conversation with them about their payment history and express your concerns. Consider requiring payment in advance for future orders or offering alternative payment options to avoid further issues.

What steps can I take to manage my finances better to avoid issues with bounced checks?

To manage your finances better, keep accurate records of all transactions and regularly monitor your accounts. Set aside a portion of your income to cover potential bounced checks and create a budget that accounts for fluctuations in cash flow. Additionally, consider using accounting software to help track payments and identify potential issues early on.

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