How Can We Manage Bad Checks Without Upsetting Customers?

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Discussion Overview

The thread discusses various approaches to managing bad checks in the context of direct sales, particularly focusing on how to accept checks while minimizing potential issues with customers. Participants share their personal experiences and thoughts on policies regarding check acceptance and handling bad checks.

Discussion Character

  • Opinion-based
  • Anecdotal
  • Debate/contested

Main Points Raised

  • One participant, identifying as a consultant, suggests accepting checks only if a credit card is provided, with a policy to charge the card if the check bounces.
  • Another participant mentions that customers may not appreciate the requirement for a credit card if they prefer to pay by check.
  • Several users note changes in policies regarding the acceptance of different payment methods, particularly concerning debit and credit cards.
  • One participant shares their experience of having checks written to the host to reduce the likelihood of bounced checks.
  • Another participant points out the legality of asking for credit card information when accepting checks, referencing past regulations.
  • One participant expresses concern about the delay in being notified of bounced checks after deposit, which complicates the situation.
  • Another participant raises a question about how to collect fees associated with bounced checks, sharing a personal experience with a customer who refused to pay the fee.
  • One participant mentions having contacted banks to verify whether checks are good before accepting them.

Areas of Agreement / Disagreement

Views differ among participants regarding the best practices for accepting checks and handling bad checks, with no clear consensus emerging on a single approach.

Contextual Notes

Participants share experiences specific to their local areas, which may influence their perspectives on handling checks and customer interactions.

Who May Find This Useful

Consultants who encounter issues with bad checks and are looking for insights from peers on managing payment policies and customer relations.

nikked
nikked
Gold Member
Messages
2,129
Okay. In our area, we have an issue with bad checks, and it seems to be happening more and more. A lot of DS gals I know won't take checks at all now, which can make some customers upset (trying to not use credit cards, etc.)

So, I've been thinking, and this is what I've come up with. Wanted some input.

I will gladly take checks; however, you must also provide a credit card. If your check is returned due to non-sufficient funds, your credit card will be charged for the total amount of your order, plus a $20 NSF fee. You will be contacted by telephone to notify you of this occurance.

I will have a slip of paper with the above statement (or something similiar...haven't worked out the exact wording yet) and have them sign it acknowledging my terms for accepting a check.

I know you can call HO and have them manually run a CC if someone pays that way after the show is submitted, so that wouldn't be problem.

BTW, I have never been comfortable with asking the hostess to have checks written to her, so that is not an option.

Okay, that's it. What do you think?
 
nikked said:
Okay. In our area, we have an issue with bad checks, and it seems to be happening more and more. A lot of DS gals I know won't take checks at all now, which can make some customers upset (trying to not use credit cards, etc.)

So, I've been thinking, and this is what I've come up with. Wanted some input.

I will gladly take checks; however, you must also provide a credit card. If your check is returned due to non-sufficient funds, your credit card will be charged for the total amount of your order, plus a $20 NSF fee. You will be contacted by telephone to notify you of this occurance.

I will have a slip of paper with the above statement (or something similiar...haven't worked out the exact wording yet) and have them sign it acknowledging my terms for accepting a check.

I know you can call HO and have them manually run a CC if someone pays that way after the show is submitted, so that wouldn't be problem.

BTW, I have never been comfortable with asking the hostess to have checks written to her, so that is not an option.

Okay, that's it. What do you think?
Click to expand...
If someone pays you by check, you pay HO with your PC debit or credit card. They will not replace it with a different CC. They only way they replace a CC now is if the first one doesn't go through.

Personally, I don't think your customers will like it. If you don't trust their checks don't take them. As for debit card numbers - almost everyone has a debit card now.
 
I agree, they changed the rule about switching debit/credit cards in Jan I think. You can't pay them w/ your PC debit and then ask them to run a separate card.
I guess you could just make a personal policy to only accept debit-credit and cash. If their debit/credit card is declined, they will run another card, but not on OUR PC debit. Only for declined customer cards.
 
I always have the checks written to the host they are less likely to write their friend a bad check.... & I hate making bank deposits I'd rather do 4-6 a month than all the guest checks from 4-6 shows
 
Hate to burst your bubble, nikked, but that's illegal. Years ago, retailers could ask for your credit card when you wrote a check, and they'd write the number on the check. Well, the powers that be (Congress? I really can't remember, I was like 8 years-old), said that this practice was illegal. I remember my mom calling out a salesgirl on it.
 
Also, I don't know about in your area, but here, I don't find out that the check has bounced until MANY days after I have deposited the check.

I think (not sure) that once it was at least 9 days after I made the deposit until I was notified that the check did not clear.

If I get the checks and deposit them the day after the show and the host closes her show really quick, I go ahead and submit the show. So, if HO is caught up, the show would have been shipped and rec'd before I even get the notice of a bounced check.

If you are that concerned about the checks, maybe you could call the banks that the checks are drawn on before attempting to deposit....
 
How are you going to collect on the $20? It's not like the credit card company can give you $20 cash for the bad check.

I recently had a bad check issue, and for the first time, the woman didn't want to pay the amount of the bad check OR the fee. I found out that most counties in my area have a service that is FREE to collect the bad check issue.
 
I have called banks to see if a check is good and I have also gone to the person's bank to cash a check I wasn't sure of.
 

Frequently Asked Questions

What should I do if a customer writes a bad check?

If a customer writes a bad check, the first step is to contact them discreetly and professionally. Inform them of the issue and ask if they can provide an alternative form of payment. It's important to approach the situation with understanding and avoid making the customer feel embarrassed.

How can I prevent bad checks in the future?

To minimize the risk of receiving bad checks, consider implementing a policy that requires customers to provide identification when writing a check. Additionally, you can encourage customers to use alternative payment methods, such as credit cards or cash, which are less likely to bounce.

What should I say to a customer who is upset about a bad check situation?

When addressing an upset customer, listen to their concerns and validate their feelings. Apologize for any inconvenience caused and assure them that you are committed to resolving the issue. Offer solutions, such as accepting a different form of payment, to help ease their frustration.

Is it legal to charge a fee for a bounced check?

Yes, in many jurisdictions, it is legal to charge a fee for a bounced check, but the amount and conditions may vary by state. Make sure to check your local laws and communicate any fees clearly to customers in advance to avoid misunderstandings.

How can I maintain a good relationship with customers after a bad check incident?

To maintain a good relationship after a bad check incident, focus on open communication and customer service. Follow up with the customer after resolving the issue to ensure they are satisfied with the outcome. Showing that you value their business can help rebuild trust and loyalty.

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