Overdraft Charges: A Catalog Show Story

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Discussion Overview

The thread discusses a situation involving overdraft charges incurred by a host after a catalog show. Participants share their experiences and perspectives on the responsibility for the charges and the implications for future transactions.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Debate/contested

Main Points Raised

  • One participant, identifying as a consultant, shares their experience of a host incurring overdraft charges after a catalog show, feeling responsible for the situation.
  • Another participant clarifies that the host's debit card is processed immediately, while the consultant's account is debited later, suggesting a misunderstanding of the process.
  • Several users express that the host's financial management is ultimately her responsibility, questioning why she would blame the consultant for the overdrafts.
  • One participant mentions that the consultant should not bear the full cost of the overdraft fees, suggesting splitting the costs instead.
  • Another participant recounts a similar experience where they resolved a payment error with a customer, highlighting the importance of communication and proof of the transaction's impact.

Areas of Agreement / Disagreement

Views differ on the extent of responsibility the consultant has for the overdraft charges. Some participants agree that the host should bear the majority of the responsibility, while others suggest the consultant should offer some compensation.

Contextual Notes

The discussion reflects personal experiences related to financial transactions in the context of catalog shows, emphasizing the complexities of customer relationships and financial accountability.

Who May Find This Useful

Consultants who have faced similar situations with hosts or customers regarding payment processing and financial misunderstandings may find the shared experiences relevant.

S
sunnygirl in nd
Messages
83
I just closed on a catalog show on Monday. The host was worried when her debit card would go through. I told her I thought it would be a couple of days so she wouldn't have to worry - she was waiting for one check for $200 from someone and was expecting it that day. I sent it in at 1:00 p.m. on Monday and her bank took it out that afternoon and charged her wtih $187 of overdraft charges because she bounced 5 checks! They forgave some of it so she now owes $112. It's really my fault so now I have to turn around and give her my commission check when it comes. Boy did I learn a hard lesson!
 
Re: Ugggg!!!!!I'm so sorry to hear that. It is a hard lesson. Just for clarification, HO usually waits until the show is shipped to debit your account, but customer/host cards are processed right away.

I wish I had a suggestion as to how to resolve this without it costing you money, but it sounds like the bank is doing all they're willing to do.
 
Re: Ugggg!!!!!How is her bouncing 5 checks your fault? It can't be completely your fault. Maybe you can split the diff.
 
Re: Ugggg!!!!!
AJPratt said:
How is her bouncing 5 checks your fault? It can't be completely your fault. Maybe you can split the diff.
Click to expand...

I agree. Why is it that when someone doesn't manage their finances in a healthy and responsible way, they blame everyone but themselves?
 
Re: Ugggg!!!!!
pampchefsarah said:
I'm so sorry to hear that. It is a hard lesson. Just for clarification, HO usually waits until the show is shipped to debit your account, but customer/host cards are processed right away.
Click to expand...

That's good to know! I had no idea. Thanks!
 
  • Thread starter
  • #6
Re: Ugggg!!!!!It was me who encouraged her that it would be a couple of days before her debit card was charged - I don't know what I was thinking.....I know that's what they do with our debit cards but I wasn't thinking. She wanted her stuff before this week-end and was in a different town so I was trying to figure out how we could close and she could get her stuff. I decided that I really didn't do much for the show - it was a catalog one in a different town -I gave her the stuff at a party so I didn't even have any postage. Her show was $500 but it was only 5 orders so it wasn't a lot of my time. I will make about $125 so I guess I'll call it a wash. She sells Upper Case Living and I was going to do a catalog show for her but I'm not going to now. I just want to put this behind me!
 
Re: Ugggg!!!!!
sunnygirl in nd said:
It was me who encouraged her that it would be a couple of days before her debit card was charged - I don't know what I was thinking.....I know that's what they do with our debit cards but I wasn't thinking. She wanted her stuff before this week-end and was in a different town so I was trying to figure out how we could close and she could get her stuff. I decided that I really didn't do much for the show - it was a catalog one in a different town -I gave her the stuff at a party so I didn't even have any postage. Her show was $500 but it was only 5 orders so it wasn't a lot of my time. I will make about $125 so I guess I'll call it a wash. She sells Upper Case Living and I was going to do a catalog show for her but I'm not going to now. I just want to put this behind me!
Click to expand...

Yes but she authorized the payment knowing the money wasn't there. This is not your fault. What if this happened at Walmart?
 
Re: Ugggg!!!!!She authorized the payment and she wanted it to be delivered by the weekend. Your encouragement wasn't forced. If you were trying to meet your deadline for yourself and you guilted her into closing then I could see paying the fees
 
Re: Ugggg!!!!!if i were you i would only if i had to pay her what your transaction caused...so what maybe a $35 overdraft fee, i don't think you should be responsible for the 5 checks that bounced...its her fault she didn't have the money in there and told you to run it.
 
Re: Ugggg!!!!!Definitely don't eat the $187, or even half of it. If she did this to you, she is used to bouncing checks. (Really, she is.) Tell her you feel badly and want to provide the best customer service to her, and you would be willing to SPLIT ONE of the NSF fees, if she would like. In the future, get a check from her, or accept cash only. She will respect you for demanding her best!
 
Re: Ugggg!!!!!What happened was that her bank took out the largest check/debit then bounced 5 smaller ones. That is not your fault. If she had an outstanding check of $200, she was nuts to think she would have it the next day. I would NOT offer to pay more than one of the fees at the most. I agree with Elaine and Jessica that it was her problem for wanting the show order by Saturday (which may or may not make it) enough to want you to submit it before she had all the money herself!
 
Re: Ugggg!!!!!I agree, the bank took out the biggest amount and then bounced the 5 checks. If she were a good customer they would be willing to work with her and only debit 1 overdraft fee. I would want proof from her that your debit actually bounced her checks before handing the cash over to her. That is a lot of money!

I had this happen to me last year, but my story was a little different. I put the wrong total at the bottom of her receipt. PC ended up debiting about $8 more out of her account (it was for spices which I missed on the form). I had a note to call her to tell her the correct amount, but put it aside while inputting all the orders and forgot. I offered to go to her bank with her and make it right. Guess what - she didn't want me to. I did end up having PC credit the difference from what they charged and the total I had at the bottom of the check. I asked them to take it out of my commission.

I wrote her a registered letter appologizing for the error, which she said she was going to take to her bank to get it resolved - instead of me going with her. She never did give me any proof, and I never did send her any money. I think she blamed me at first, but then found out it really wasn't the amount I over charged that bounced her account.

Best of luck.
 

Frequently Asked Questions

What are overdraft charges in the context of a catalog show?

Overdraft charges occur when a customer's account does not have sufficient funds to cover a transaction, leading to fees imposed by the bank. In a catalog show, this can happen if a customer places an order but does not have enough money in their account when the payment is processed.

How can I avoid overdraft charges during a catalog show?

To avoid overdraft charges, it's essential to communicate clearly with customers about their financial commitments. Encourage them to check their account balances before placing orders and consider offering payment options that do not require immediate funds, such as payment plans or credit options.

What should I do if a customer incurs an overdraft charge after ordering?

If a customer incurs an overdraft charge after placing an order, it's important to address their concerns promptly. You can offer to assist them in resolving the issue with their bank and discuss options for their order, such as rescheduling or adjusting the payment method to avoid future charges.

Can I be held responsible for a customer's overdraft charges?

Generally, you are not held responsible for a customer's overdraft charges as they are a result of the customer's banking situation. However, maintaining open communication and providing excellent customer service can help mitigate any negative feelings and maintain a good relationship.

How can I educate my customers about managing their finances during a catalog show?

Educating customers about managing their finances can be done through informative materials, discussions during the show, or follow-up communications. Share tips on budgeting, tracking expenses, and understanding bank policies regarding overdrafts to empower them to make informed decisions.

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