Dealing with Bounced Checks: Tips for Protecting Your Business and Finances

[yummy4tummy]

I recently did a cooking show for a friend and her daughter. It was a pretty good show. However, one of the guests, who happened to be the sister of the co-host's boyfriend, wrote 2 checks...1 for her order and 1 for her mom's order. They both BOUNCED to the tune of $240! The show was in another town ...(5 hrs away). Normally I would cash the checks at the bank that they were drawn on so this wouldn't be a problem but due to scheduling problems, that didn't happen. I did call the bank before to make sure that funds were available. However, with all the privacy issue laws now the bank would not verify funds but did verify that it was a valid account. Geeze! I have contacted my friend and told her NOT to release the orders to these guests and then I got a hold of the girl that wrote the checks FINALLY. After over 2 weeks of her saying she was sending the money order, I think I may have actual payment soon (tracking # and is guaranteed by Thurs... keeping fingers crossed)

Anyway. after all of the running, calling and headaches and the fact that a bank won't even release any information anymore, I have a very bad taste in my mouth for accepting checks. Does any one else on here have a cash or credit card only policy? I have a very, VERY limited amount of money in my PC account (building my business). Had it not been for the fact that I had spare money in a savings account to transfer, MY PC account would have been overdrawn. I don't want to lose out on business but I want to protect myself too. Would love some insight. Thanks
Valky

BTW this girl works for a bank. I am hoping that it was just an honest mistake but the story lines that I got seem to point in a different direction

 

[tlennhoff]

Very depressing. I'm a bit leary of accepting checks although so far it has only been friends that I've sold to. I'd prefer people to use their credit cards for a number of reasons the biggest one being that it is easier for me, no trip to the bank, rarely declined so few post-show-submitted problems. I wonder if PC actually allows us to tell customers no checks?

 

[cmdtrgd]

It's your business! If all you accept is the 4 major credit/debit cards and cash, who is to say you are wrong!!!

 

[dannyzmom]

I will not submit a show until and unless all checks have cleared. If checks don't clear I call the customer and try to work it out with her - if that doesn;t work, I cancel her order. Period.

 

[Jennie4PC]

Hey yummy4tummy what part of Nevada are you from?

 

[Robynchefcanada]

I have not had a problem YET... I usually only accept them if they are from good friends of the host having the show. I also think you need to go with your gut. If you don't know the host at all then I would say credit cards or cash. Mostly everyone has a credit card these days. Sorry to hear of your troubles!!!

 

[agw]

I'm still trying to collect on a bounced check from a Fund-Raiser back in June. It wasn't until 2 weeks after I deposited the check that I got notice that it bounced. Go figure.

 

[brandenc]

I accept checks but I also let them know that if they bounce there is a 35.00 fee that must be paid to pick up that check. if it isn't picked up I take it to the attorneys office and they attempt to get this cleared up.So far I haven't had anyones check bounce, but they know if it does bounce that in order to receive there order they need to pay me with cash for the total of the order plus 35.00.I had a problem with accepting a check from a girl before. She received her merchandise she paid 20.00 cash and 20.00 check and because one of her items was broken she put a stop payment on the check and my bank charged me 2.00 for it coming back.

 

[jenf]

I'm still trying to collect on a bounced check from a Fund-Raiser back in June. It wasn't until 2 weeks after I deposited the check that I got notice that it bounced. Go figure.

Same thing happened to me recently. The girl already had the products by the time my bank sent me something. How often to most of you check your account to make sure this doesn't happen? I definitely want to learn from this mistake so it doesn't happen again.

 

[chefann]

I've had a couple of returned checks since I started. And, yes, I usually get the notice from my bank well after the show has been submitted and is on the way (or already delivered) to the host. Now, I try to check my account online every couple of days, just to see if there was anything returned.

That's just another point in favor of a bank that includes online banking free.

 

[ChefBridgetA]

You could try having anyone interested in writing a check, write the check to your hostess, and then your hostess can write you one check at the end. In the past this has worked for me. I've noticed that people seem more careful not to bounce checks to their friends than they are to a stranger.

 

[ange13]

I'm having an issue right now where the customer wrote me a check, but forgot to sign it. of course I didn;t notice that and my bank returned it to me. so i sent it back to her WITH a Self Addr stamped envl and a note stating, just sign and return, that was over a week ago, still no check!! and it was $72!!!!! of course she has her stuff already! GREAT!!!! Need to call her again tomorrow, and she marked that she wanted to do a catalog show---hmmm doubt it!

 

[yummy4tummy]

I have heard horror stories of people writing checks to the host and getting one check from him/her but then the host's check bounced because he/she spent the money from the guests sales. Then you are out the $$ from the whole show. Another thing is, even though they are the host's friends, it is my business and I don't want the host to have a bad experience with having to deal with a bounced check. We are taught to make having a show be a smooth, easy and fun experience. I think if I hosted a show and I was responsible for tracking down someone who had bounced a check (what if it was someone who brought a friend that I didn't know?) I wouldn't want to have another show of any kind because of that experience. Hey, maybe that is the reason why so many people are afraid to book a show now. (things that make you go hmmmmm)

I have found that the majority of my guests are afraid to give credit card #'s due to all the identity thefts that make the news. (mountain/molehill media)

Before I get bombardered with angry comments on that statement, let me say in no way do I think identity theft isn't a real problem or a devastating experience. I just find that the media tends to focus on the negative.

Now, to you that have a NO CHECKS policy...have you noticed any decline in orders? Do you let your hosts/guest know before showtime that you don't accept checks?

 

[lkspeir]

I've has alot of trouble with hot checks recently. In fact there was one posted to my account today. I deposited it over a week ago, and because the order was shipped four days after I submitted the show - they already have their products. I've had the most problem with hot checks from people passing around the catalog at their office. So, I'm going to make it a rule that on "catalog" purchases (those not attending the show) only credit cards and cash accepted.

 

[jentapp]

I did a show recently that I'm VERY nervous about. Almost everyone asked me to wait an entire week to deposit the checks saying that they had no money in their accounts until payday (which was very honest of them and I've had to do that once before in the past, so I obliged). Then I submitted the show the day before the deposit (needed to get my stones counted for the stoneware promo). Later that afternoon, one of the customers called and told me to cancel her order and mail back her check because it WOULD bounce if I had deposited it and she didn't want either of us to have bounce fees (which I wasn't happy about, but I'd MUCH rather they call me and tell me than to accept a product knowing that their check would bounce...I was very grateful for the head's up). Since it was the DCB that's on backorder, I was able to cancel it for her and will be mailing the check back.

Now I'm just praying that the rest of the checks will clear (not one of them had a credit card or cash on them).

 

[tlennhoff]

I like the idea of cash or credit card on catalog shows or having them write the checks out to the hosts since as was pointed out they are less likely to bounce a check to a friend.

 

[DebbieJ]

On all outside orders and all catalog shows I have the customers write the checks to the host. Those are the people least likely to write their phone # on their order form, so then I'd have no way of getting ahold of them either.

I just make it very clear at my shows that I LOVE LOVE LOVE LOVE credit and debit cards, so please feel free to use them. Since I started saying that, most people do use them and I've had to make far fewer trips to the bank (although that's not necessarily a good thing since I want to book and recruit my teller!).