Should I Charge a Customer for a Bounced Check?

[ChefJoyJ]

I posted a little bit ago about a check that bounced from a show I did. Anyway, I am now being charged the check amount, the return check fee, and a fee b/c I didn't have enough in my account when PC tried to debit it. Would you charge the $25 NSF fee to the customer? (of course I'm asking for the check amount and return check fee) I feel like I should, b/c it was her fault that I didn't have the money to cover the debit from PC, but I want to make sure that it falls in line with what other consultants do). TIA!

 

[DebbieJ]

No, it's not her fault you couldn't cover it. Charge her the returned item fee (as well as the amount of the original check) and that's it.

 

[ChefJoyJ]

No, it's not her fault you couldn't cover it.

Charge her the returned item fee (as well as the amount of the original check) and that's it.

If her check had not bounced, I would have had enough money in the account to cover it. However, b/c of her bounced check, and the ensuing fee, my account was short $2. Therefore, it is her fault...isn't it?

 

[PamperedChefLayla]

If her check had not bounced, I would have had enough money in the account to cover it. However, b/c of her bounced check, and the ensuing fee, my account was short $2. Therefore, it is her fault...isn't it?

I would charge all of the fees that resulted from her bounced check. But you may want to consider getting overdraft protection. I don't submit my shows until all checks have cleared.

 

[DebbieJ]

If her check had not bounced, I would have had enough money in the account to cover it. However, b/c of her bounced check, and the ensuing fee, my account was short $2. Therefore, it is her fault...isn't it?

It's not her fault that you didn't have a buffer in your account.

 

[Chef Gilles]

I would not charge! As a business owner, you should have protection in case things like this happen... but bottom line is..it's your business therefore your customers!

 

[pc_jessica]

i would charge her. i worked at a bank and from a bank's standpoint, it was not your fault that the check did not clear, so therefore you should not be reliable for the charges. i know we had alot of business owners that would charge the customer for ALL the charges they ended up gettting charged.

 

[ChefJoyJ]

I would not charge! As a business owner, you should have protection in case things like this happen... but bottom line is..it's your business therefore your customers!

It's not her fault that you didn't have a buffer in your account.

I suppose. However, I didn't have a buffer b/c I had recently switched banks, after closing my old account. I closed my old account b/c my debit card had been hacked and I lost over $300. :cry: I switched banks for my peace of mind. I'm waiting for the money to be returned to me...if it ever is. :cry: I had only $15 left from my old PC account when I opened this new one...since I'm determined not to use my DH's money in my PC biz. Sigh...now I have to, b/c I can't get in touch with the guest (I know her, taught her daughter, so I'm not too worried about getting in touch with her). Sometimes life gets in the way, Debbie, and it's not always black and white. I *always* had a buffer in my account. I hate that I don't now.

I would charge all of the fees that resulted from her bounced check. But you may want to consider getting overdraft protection. I don't submit my shows until all checks have cleared.

Opened up a free checking account (w/o overdraft protection) until I built up my account again...thanks to losing all that money from a hacker. Will be getting overdraft ASAP.

i would charge her. i worked at a bank and from a bank's standpoint, it was not your fault that the check did not clear, so therefore you should not be reliable for the charges. i know we had alot of business owners that would charge the customer for ALL the charges they ended up gettting charged.

I'm torn, b/c I know her, love her and her daughter, and feel bad asking for $35 in fees for a $34.39 order. However, I feel sick thinking of eating all that too... Sigh...it would be easier if I didn't know her, I think.

 

[pcsharon1]

You're right - it would be easier if you didn't know her. But, I have always charged customers all the fees associated with their declined check, to include overdraft fees. I always try to have a buffer in my account but honestly, it isn't always possible. Most businesses charge a hefty fee for a returned/declined check and it is my BUSINESS. I don't overcharge and make money off the fact, but I do get my money back.

You made about $8 off her order but you will be spending $35 because of it. That isn't good business. Most customers totally understand.

 

[ChefJoyJ]

I just spoke with her, and she insisted on paying all fees. I really do feel guilty having her pay $35 in fees for a $34.39 order.

You're right - it would be easier if you didn't know her. But, I have always charged customers all the fees associated with their declined check, to include overdraft fees. I always try to have a buffer in my account but honestly, it isn't always possible. Most businesses charge a hefty fee for a returned/declined check and it is my BUSINESS. I don't overcharge and make money off the fact, but I do get my money back.

I do think most companies do make a bit of money off their returned check fees, for the hassle maybe(?), but all we're doing is getting our money back. Thankfully, she understood and insisted on paying all fees. So...all my stress for nothing...this time.

 

[Sheila]

I had a similar instance a few months back. A hosts $40 something check bounced which caused a $25 bounced check fee on my account. PC had already done their debit, but I had another direct debit coming out which would have left me with about $63 in the account until I got paid the next day. The $65 (and change) put me over the limit & the direct debit was declined & another $25 fee charged. It cost me a LOT. The host brought me cash for her check & the $25 bounced check fees which I promptly took to the bank & deposited. But the other fees came out and had not yet posted online, so I didn't learn about them for another 2 days. Luckily, my direct deposit had gone through & was able to cover the extra expense out of my budget, but it did teach me that I need to keep a good buffer in the account -or- I need to have overdraft protection. I did not go back & ask the girl to pay the additional fees that popped up later. It's not her fault that I let my account get so low.

 

[wadesgirl]

Technically if she had bounced a check at some other place they automatically charge $30-35 for their fee. Not sure exactly what I would do personally but I'm glad she already agreed to cover all charges.

 

[elizabethfox]

Glad she covered the charges. But in the future maybe have a set amount you will charge for NSF check and fees resulting from them.

I always include this info in with my hostess packets, and I tell this to the guests at my shows when I am going over how to fill out the order forms. So everyone knows ahead of time....that if they give me a NSF check.. they will be charged x amount.

 

[JackieBozeman]

If you think about the businesses you visit, you normally see signs that customers are charged 3 times the amount of the check if they bounce. That is allowed under the law. You might want to talk with her to see if maybe she'll share the charge with you.

 

[AJPratt]

That's great that she is covering it! If you feel badly, then charge her the check, the NSF fee and maybe 1/2 of your overdraft fee. If you feel that bad about it.

FWIW, I cannot afford to keep a buffer in my account. It really is that tight for us. But, I probably wouldn't charge an overdraft fee, just the replacement check + overdraft. That is something between me and my bank.

I am glad it worked out!

 

[pc_jessica]

Glad she covered the charges. But in the future maybe have a set amount you will charge for NSF check and fees resulting from them.

I always include this info in with my hostess packets, and I tell this to the guests at my shows when I am going over how to fill out the order forms. So everyone knows ahead of time....that if they give me a NSF check.. they will be charged x amount.

i am quite interested in how you do this...i have no idea how i would just start talking about if you write me a bad check...also where at in the hostess packet do you put the info? do write up a whole seperate sheet on it? just curious thanks!

 

[Triciascucina]

I would not charge! As a business owner, you should have protection in case things like this happen... but bottom line is..it's your business therefore your customers!

Sorry but I have to agree. you should always have some sort of cushion to protect your self. I would charge her the fee you bank charged you for the bad deposit.

 

[pamperedlinda]

I'm afraid I agree with Deb - it is not your customers fault that you didn't have a cushion. It is unfornate that her check caused you so much hassle.

I would have only charged her the overdraft fee from her check and the amt of her check. Write off the rest as a business expense and a learning experience.

 

[Ginger428]

I suppose. However, I didn't have a buffer b/c I had recently switched banks, after closing my old account. I closed my old account b/c my debit card had been hacked and I lost over $300. :cry: I switched banks for my peace of mind. I'm waiting for the money to be returned to me...if it ever is. :cry: I had only $15 left from my old PC account when I opened this new one...since I'm determined not to use my DH's money in my PC biz. Sigh...now I have to, b/c I can't get in touch with the guest (I know her, taught her daughter, so I'm not too worried about getting in touch with her). Sometimes life gets in the way, Debbie, and it's not always black and white. I *always* had a buffer in my account. I hate that I don't now.



Opened up a free checking account (w/o overdraft protection) until I built up my account again...thanks to losing all that money from a hacker. Will be getting overdraft ASAP.



I'm torn, b/c I know her, love her and her daughter, and feel bad asking for $35 in fees for a $34.39 order. However, I feel sick thinking of eating all that too... Sigh...it would be easier if I didn't know her, I think.

These are the reasons I did not go with a PC Debit Card. I have a PC Credit Card & NEVER use it. Its in my house & NEVER leaves. I put checks & cash in my regular acct. & once a month I get a bill. I pay it & I'm done with it. I'm doing this almost 4 years & have only had 1 bad check. Also having a pc credit card, they give you some perks. Paying in full you get money deducted from your bill. HTH

 

[babywings76]

I decided to use the PC credit card for fear of something like that happening. I use it for all my business purchases and then pay it off in full each month. You get a % back, too.

 

[ChefLoriG]

technically, unless you have it posted at your checkout that you have a bounced check fee of whatever....., all you can ask for is the amount of the check. I've had to go to the magistrate's office to collect on a bounced check, and they would only allow me to collect the amount of the check because I had nothing stating either on my order form or at my checkout that I will also collect a fee. I also use the PC Credit card for this very reason, to make sure all the checks clear and I don't fall short in my acct.

 

[ChefJoyJ]

Thanks for everyone's advice! I am glad I got to hear both sides of the fence. I think it's only fair that if someone writes a bad check, they pay all fees, b/c that's how most (if not all) businesses do it...and this is *my* business.

That being said...I just applied for the credit card, although I really didn't want to open one. If I only place show orders on it, and pay it off at the end of the month, then I should be fine. *And* it will avoid future situations where my account is debited and I don't have the money in there. I try really hard to have a buffer, but it isn't always feasible.

 

[Ginger428]

Thanks for everyone's advice! I am glad I got to hear both sides of the fence. I think it's only fair that if someone writes a bad check, they pay all fees, b/c that's how most (if not all) businesses do it...and this is *my* business.

That being said...I just applied for the credit card, although I really didn't want to open one. If I only place show orders on it, and pay it off at the end of the month, then I should be fine. *And* it will avoid future situations where my account is debited and I don't have the money in there. I try really hard to have a buffer, but it isn't always feasible.

YOU GO GIRL!!
Also NEVER put vital info online or in an email!!! I tell ALL customers that what to pay with a CC# CALL ME, do not put that info in an email. Hackers will be hackers!!!

 

[ChefJoyJ]

YOU GO GIRL!!
Also NEVER put vital info online or in an email!!! I tell ALL customers that what to pay with a CC# CALL ME, do not put that info in an email. Hackers will be hackers!!!

I do the same thing! I want to protect my customers. I'm still at a complete loss as to how the person managed to get my debit card number. I rarely used it, b/c it was my PC account, and I just had PC debit or credit my account...depending on whether I was buying/submitting shows or getting commission statements. I can't believe all the hoops you have to jump through when your card/account info is stolen/hacked!

 

[Ginger428]

I do the same thing! I want to protect my customers. I'm still at a complete loss as to how the person managed to get my debit card number. I rarely used it, b/c it was my PC account, and I just had PC debit or credit my account...depending on whether I was buying/submitting shows or getting commission statements. I can't believe all the hoops you have to jump through when your card/account info is stolen/hacked!

PAIN in the BUTT!!

 

[christinaspc]

I have taken some bounced checks this year and my bank told me I was allowed to charge them the fee that I was charged they said the only thing I wasn't able to do with that is if the person doesn't pay and I take the bounced check to their bank I would only be able to collect the amount of the check not the additional charge.