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toCheck, or Not to Check. That Is the Question.

In summary, the conversation discusses the topic of accepting checks as payment for sales at parties. Some participants have had positive experiences with checks, while others have experienced issues with bounced checks and fees. The pros and cons of accepting checks are discussed, as well as alternative forms of payment such as debit/credit cards and cash. Ultimately, it is up to the individual consultant to decide whether or not to accept checks and how to handle potential issues.
jimgass
34
Here's the question.

How many of you simply do not accept checks as payment?

I have not had any issues yet, in my two shows that I've done, BUT. I was talking to my recruiter yesterday and she had a horror story regarding bounced checks and a host she didn't know being almost impossible to track down.

Here's the downside to checks, as I see it: In theory, the hope is that eventually we are doing shows for people we don't know. These people are more likely to write a bad check to someone they don't know. I know that my bank (I just spoke with them today on this subject) imposes a 35 dollar returned check fee if any check written to me bounces. Also, I do not currently, nor do I plan on, keeping a whole lot of "Extra" money in that account, as the money I make is there to go toward bills, etc. So if a check bounces after I submit a show, then my account could go into the red, imposing another 35 dollar fee against me for being overdrawn.

The upside, as I see it, is this: Some people still carry checks. And for PC shows, which many customers have been to a lot before, typically accept checks and thus the customers expect to pay in check. I also know there is a fear of giving someone they don't know (in this case, me) their credit or debit card information. All this identity theft going on and whatnot. So checks are relatively secure in the mind of a customer, and you don't have to worry about having enough, or way too much, cash. And I sure don't want to not sell a 12-inch skillet because Aunt Martha only wants to pay with a check.

My thought is this: Almost everybody has a debit card linked to their checking account, which works like a credit card. That's the visa I carry around with me all the time. So from a practical standpoint, it would seem that debit cards would be easier.

Also, if I do accept a check and it bounces, I don't want to also be out the returned check fee imposed by my bank. Therefore If I took a check that bounced, I'd want the person to pay me the amount of the check plus the 35 dollar returned check fee. I am not sure I have grounds to demand this though, if they don't know of this fee up front.

So should I simply not accept checks at all, or should I express plainly to everyone that a 35 dollar fee will be assessed for returned checks. What do you all do?


Thanks!

Jim
 
Well, I can tell you that I've been doing this for four years and I've never had a bounced check. I think it's just a chance game, and a chance we really have to take.I'm not sure if PC would frown upon us not accepting checks. It even says on the official order form that checks are accepted.And seriously? You could tell them a fee would be assessed but how would you go about assessing it?What I do is tell them that credit cards are preferred, assure them that the number gets encoded in my software right away so that I don't store it and that eases their mind. I know other consultants give those who use a credit card a twixit clip or citrus peeler or something tiny as an incentive to use a credit card.The younger crowd will have no problem paying with a debit card.
 
I think you need to switch banks! While they will charge the bounce check person $25-35 at most banks, my bank only charges me $8 for a check bounced that I deposited into my account. I have bounced 4 in the 4 years I've been in business and only had problems getting 1 of them back - which I did within a week. 2 of the 4 contacted me before I even knew it bounced and offered to pay any fees associated with it. 1 of those even gave me extra - she wouldn't let me give her change for the bills she gave me - for the problems it created.It is completely up to you how you run your business. You can always deposit the checks and wait until they all clear before submitting a show. You can also go to the different banks and cash out the checks if that's your preference. Or you can encourage debit/credit card or cash.
 
I take checks. In my wrap-up, I say "payment is to me. I prefer credit cards and cash but accept checks." I have seen a big decrease in the number of checks since I started saying that. I have the PC Visa so don't worry about getting the checks deposited before submitting a show. I usually get one or two bounced checks a year. None last year. I think only once in my 7 years have I not gotten the payment. Things happen; people are not intentionally writing me bad checks. I do collect the fee that my bank charges me when I get payment from them. I will only accept cash or money order for that payment. I also contact the host and ask them not to deliver the order if they haven't yet until the payment is resolved.It's up to you, but I think you'd still want to accept that check from Aunt Martha for the 12" skillet. You can decide if you want to make sure all the checks clear before submitting the show. You just have to miss incentive deadlines sometimes if you're doing that. Some consultants have the host charge all outside orders so there are no checks coming in after the demo.
 
I've been doing this for 8 years, and I can count the # of bounced checks on one hand. And I can only think of one of those where I had to actually track down the bounced check...the others all called me before I even knew the check had bounced because they realized it before me, and wanted to make arrangements for payment.

There is absolutely no way I could NOT take checks. Sometimes I will have a whole show that has been payed for with checks, and I still have a LOT of people who don't want to use a credit card.
Yes, Debit or Credit would be my preference, but people still write checks, and like Keith said, the receipts clearly state that we take checks.
 
  • Thread starter
  • #6
Thanks all. These are good points. As I said, i've only had two shows, so I don't have much experience with all this, just trying to get started on the right foot.
 
I take checks for orders placed before the show and at the show. I make sure to deposit said checks that day/night or the next day. I don't submit the show until 3 days later so I am pretty assured all is well.

For orders collected after the show, I tell the host it needs to be a debit/credit payment. This also stops the issues w/ the host then needing to mail me the checks...etc.
 
Liquid Sky said:
I take checks for orders placed before the show and at the show. I make sure to deposit said checks that day/night or the next day. I don't submit the show until 3 days later so I am pretty assured all is well.

For orders collected after the show, I tell the host it needs to be a debit/credit payment. This also stops the issues w/ the host then needing to mail me the checks...etc.

I do this as well....WHEN THE HOST LISTENS. LOL
 
Liquid Sky said:
I take checks for orders placed before the show and at the show. I make sure to deposit said checks that day/night or the next day. I don't submit the show until 3 days later so I am pretty assured all is well.

For orders collected after the show, I tell the host it needs to be a debit/credit payment. This also stops the issues w/ the host then needing to mail me the checks...etc.

I do the same, except I am not usually as punctual about getting the checks in the bank. I have never had a bounced check. I did have issues getting cash from a hostess once (it was only about $20 so I went ahead and submitted the show), but it was my fault for not collecting before submitting.
 
  • #10
It seems like there are a lot b/c people usually complain about it when it happens, but I have probably accepted over 100 checks in the last year, and have never had a problem. Occasionally I have someone ask me to hold one.... I just have to make a judgement call on that, however they are usually telling me when payday is and I am going to cash it ASAP then, so have never had trouble with it bouncing.
It is all completely up to you.
 
  • #11
I have been doing PC for over 13 years and only had a check not clear - maybe five times. And I have always gotten payment from the customer to include the fee charged by my bank. I run a business - customers expect to have fees to pay when they bounce checks. No one has ever complained. I've found that since I have moved again (we are military, move a lot) most of my new customers still prefer to write a check. I generally have 5-10 checks per show.
 
  • #12
Bank at a small local bank. Fees are much smaller and the employee are invested in the bank and are much more willing to help you. My bank charges $5 for a bounce check. Secondly, deposit your checks the day after the show. Don't hold onto them. Put them in the ATM or night deposit box if you have to. Lastly, you can call HO and have the show shippment rerouted to your address if you cannot reach the host/guest to resolve the bounce check issue. If you do this, the host will be sure to contact you. If she does not have payment for you then you can send the products back for a refund.
 
  • #13
Yes, I take checks, too.

Please don't blast me...but here is my opinion from the OTHER side as a guest.

As a guest at a DS show I will NEVER provide my debit or credit card number to the Consultant. I always write a check.

Here is why. As a consultant, when I take home all those order forms from show with all the credit card numbers written on them, I try to enter the info ASAP into the computer. But, honestly, the order forms sit on my desk for maybe a day until I get to it.

Also, I DO save the order forms until I submit the show to make sure the CC# go through and I entered everything correctly. That could be as long as a few weeks that those order forms are sitting at my house.

THEN I SHRED THE CC INFO.

I wonder if other DS consultants do that?? I am NOT saying that most of us aren't very careful. But, I don't know that consultant from that other DS company.

Who is living in the house with them? Is everyone living in the house trust worthy? But, most of all, I worry that the order forms may sit around for awhile and then just get pitched in the garbage without shredding.

I don't mean to sound cynical, but I work very hard at trying to be very secure with my credit cards.

So, from a guest's standpoint, when I am at a DS show, if I can't write a check, I won't order.

This is just my opinion! :)
 
  • #14
Going off what Keith and Kathleen said:

If you have guests who are concerned about you writing down their card number on the order form, you could just put it straight into P3 in front of them (if you have a laptop at your shows). The customer sees the account number get obscured, and feels more comfortable that it won't get misplaced. Now, this does pose an issue if the card doesn't go through and you have to resubmit it, but it is an option.
 
  • #15
NooraK said:
Going off what Keith and Kathleen said:

If you have guests who are concerned about you writing down their card number on the order form, you could just put it straight into P3 in front of them (if you have a laptop at your shows). The customer sees the account number get obscured, and feels more comfortable that it won't get misplaced. Now, this does pose an issue if the card doesn't go through and you have to resubmit it, but it is an option.

Noora, this is exactly what I do. I actually tell them not to write their number on the order form (although they don't always listen). I forget that some people don't take laptops to shows. I guess in that case I wouldn't necessarily give a dc/cc number either.
 
  • #16
NooraK said:
Going off what Keith and Kathleen said:

If you have guests who are concerned about you writing down their card number on the order form, you could just put it straight into P3 in front of them (if you have a laptop at your shows). The customer sees the account number get obscured, and feels more comfortable that it won't get misplaced. Now, this does pose an issue if the card doesn't go through and you have to resubmit it, but it is an option.

lesliec said:
Noora, this is exactly what I do. I actually tell them not to write their number on the order form (although they don't always listen). I forget that some people don't take laptops to shows. I guess in that case I wouldn't necessarily give a dc/cc number either.

Absolutely, I agree about entering the info directly into a laptop.

But for the DS shows I have been to, none of the Consultants have had a laptop.

I guess all I am trying to say is, being a consultant, I can see how easy it would be to mis-handle the info.

I am very obsessive about shredding the info, but I can understand how others might not be.

In fact, what starting me thinking about the whole thing was this:
When I first started, I was keeping all show orders in a show folder, then I would file it. I didn't have a lot of info, so I didn't feel the need to throw anything out (space wasn't an issue). Plus, first starting out, I was leary of throwing away the order forms. When I got ready to clear some stuff out, it would have been so easy just to toss everything. It then dawned on me that I had all this CC info in this paperwork! :eek: And I had the folders sitting around my house for a bit of time!

I promptly shredded and make a point of doing that routinely.
 
  • #17
I guess I personally don't stress over it too much just because I work in the fraud department of a huge bank's credit card division, and I know I'm 100% protected against fraud.
 
  • #18
I accept checks and I tell them flat out. When they ask what pmts I take, I say "CC (Visa, M/C, Discover & Amex), Cash, & Personal Checks, There is a $35 returned check fee." I have never had a check bounce but I have had cc#s that were declined due to my inability to properly copy them from the card to my laptop. It all depends on how YOU want to run your business.On a side note, after all orders are processed and delivered I Sharpie out the CC #'s on the order. With the exception of one customer who likes me to keep her info on file so she can just order her pantry products without having to give me her info every couple of months. I don't disgard my forms for 6mos.
 
  • #19
I know of some who are having all checks made payable to the host and having her write one check to the consultant or put it on their debit card. This makes deposits much quicker and easier since you have one check to deposit rather than 10 or 15. I've also told that since the host knows most of the people at her show, they are less likely to write a bad check to her since they are friends.
 
  • #20
I have decided to take checks from those that I know personally but will NOT take checks from anyone else. When I was a consultant a few years ago, on my second show there was a HUGE fiasco involving bounced checks and the hostess running off with people's money. Once burned, forever scarred!

I don't think it is unreasonable at all. Cash or dc/cc. Bottom line. I have inserted a $20 return check fee note on order forms so that if I choose to take one they are already informed of the fee for bounced checks.

And one thing to remember is that this is YOUR business. So regardless of whether the PC order form says "check" YOU can choose what YOU will accept. :D
 
  • #21
I have all guests make out their check to the HOST. This give me the assurance that I only have to worry about one check clearing the bank, and it gives my guests the peace of mind of writing a check to someone they know personally. It is a win-win situation. The host never minds writing me a check for the full amount, because they have all the checks in hand at the time the show closes. I've found this makes my life MUCH easier!
 
  • #22
I've already stated on here several times, but I'll say it again on this thread, I do NOT take checks. I've had bounced checks twice in my almost 8 years in business. That's enough for me. I had one lady really screwed me over and she's the reason I no longer will accept them. I was in the process of moving from AZ to TX and had one last show in AZ. Well, her check was for $60. I deposited it before we hit the road. It was a big fiasco. I contacted the AZ Attorney General and they were pursuing her then they realized that she didn't fill the check out correctly and they couldn't prosecute her at all. She had the products and I had NO money.

I let the customers know that debit/credit is preferred, but if they need to write a check to make it to the host. I have the host pay me with her debit or credit card for all checks and cash orders and her host order. Some hosts do not want to take checks and I tell them that that's okay. We together will stress debit or credit cards. She knows her friends.
 
  • #23
I have a friend that takes all forms of payment but then says she will do "plastic for plastic" ... meaning if you pay with a credit/debit card you will get a twix clip. It works great for her. Just another idea.

Susan
 
  • #24
I have had a check bounce. So what I do now is I cash the checks before I close the show. I know some people have their opinions about this but, personally, I feel it is no worse than having someone's credit card decline. It should stop the closing process until all orders are paid for. Just my opinion. I need to make sure that I am paid, or no product should leave HO. Hope that helps :) About your $35 fee, I would let people konw when you say what you except that all checks that get returned, they will also have to cover than $35 fee. OR choose to pay with cc.
 
  • #25
barbjans said:
I have had a check bounce. So what I do now is I cash the checks before I close the show. I know some people have their opinions about this but, personally, I feel it is no worse than having someone's credit card decline. It should stop the closing process until all orders are paid for. Just my opinion. I need to make sure that I am paid, or no product should leave HO. Hope that helps :) About your $35 fee, I would let people konw when you say what you except that all checks that get returned, they will also have to cover than $35 fee. OR choose to pay with cc.

I tried cashing them first, but ran into the fact that many banks charge a cashing fee. If a cc is holding up the close, it doesn't cost anybody anything.
 
  • #26
Love the plastic for plastic idea. In 7 years I've had only a handful of checks returned. I have checks made out to me, since I'd rather have one $30 check bounce than to have a $500 check bounce for the whole show. It also makes things easier for my host, which is always my goal. That said, I do encourage people to pay with a card. I announce that as soon as everything goes through I destroy their information and my software doesn't retain the number, so they can feel confident giving me that information. I think I'll institute the plastic for plastic idea, though.
 
  • #27
I always take checks. It's never been a problem in my off & on 10 years. Maybe had 3 checks ever come back. Some shows, a lot o people pay cash. Others, most do cc/dc. Others I do have lots of checks. I do deposit the checks immediately in most cases, so know if they clear or not before I close the show. I know that some DS companies make their consultants pay fees, so that's why some folks prefer checks for when at DS parties.
 
  • #28
Ha ha! I have you all beat -- I had a customer's $300 check bounce! Yes, I charge a $25 NSF Fee, but geez! Lucky I keep extra cash in that account!

She paid up after about a week -- the products were delivered to her already (my bank takes about 3 weeks to tell me about a returned check).

I still take checks, but do encourage plastic. I tell them that if you have a check, you probably have a debit card and it's so much easier for both of us.
 
  • #29
In the 6 years I have only had one bad check and that was a girl that worked in my area. I wish she would have just said can you hold the check. It was a fiasco and I will not take checks from her now. I also had a previous hostess (had no problems with on the first show), had a credit card that didn't go through so I went ahead and paid for it, and it took a year to get that money back, so I am more cautious now but it is a help with the credit card program that pc installed.
 
Last edited:
  • #30
I used to be a massage therapist and had one client who was a terrible check bouncer--and yes, she was not only a friend but a co-worker! I talked to my bank and got "overdraft protection" so that I had only an $8 fee, and they would pay the amount if her bouncing check resulting in insufficient funds for me. And she was actually pretty good about paying any fees resulting from her bad checkbook management.I love the idea of cashing the checks before the show closes. Can you just deposit them and wait for them to clear?....if you have time.And if you are going to have guests write checks to your host, tell the host ahead of time. We recently had a chocolate party (Dove) and after everyone left she handed us their checks and wanted our debit/cc number. Of course it was okaaaay....but it was a shock.
 
  • #31
take the checks, tell them there is a $35 fee and get a home as well as a work or mp number. The local department stores usually request the work number. If someone writes a check and it bounces and they cant be contacted within 10 days, turn it over to the authorities. In the town where I live its the DA's office.That one check they were trying to avoid you to pay could end up costing them at least $100 more. If they dont pay the DA they can be arrested, or at least thats the law where I live. I have not had any issues with any checks I have taken, but its something that happens.
 
  • #32
The issue with cashing the checks ahead of time is that my bank takes up to two weeks to return a check to me....and then it's only the electronic copy. I don't have checks bounce too often but it makes me mad
 
  • #33
I had a check bounce on my during my last show. The guest was very embarrassed because there was a payment glitch with her husband's employer. She paid the fee and the $15 bank charge. A $35 bank charge seems very high - I might look at another bank that has more favorable fees. I also allow people to pay via paypal though there is a small fee incurred with that method.
 
  • #34
My check policy with my business: All guests make their checks payable to the Host. I explain to the host that "You will then close your party with either cash, check or credit/debit preferred. If you have a 'rewards card' perhaps you might want to consider putting the show on that card so that you can collect all the reward points for this large 'purchase'? If you don't have a rewards card, do you simply have a debit card linked to your checking account? If so, If you don't mind I'd prefer we go that route so that we can close up quickly, you don't have to mail me anything, no banking is needed (for me) etc." I'd say 9/10 of my hosts then pay in that fashion.

If they seem to be skeptical (that 1/10) but I feel they have that option, I offer them something for free to go the cc/dc route b/c it is sooooooooooo hard for me to get to a bank. I work M-F 8-4;30 (non-banking hours) so I only get there on Friday nights or Saturday mornings. That can really hold up my closing a show.

I have had one check somewhat bounce - from a coworker. However, it never bounced at my bank, but it did on her end??? I guess banks try to resubmit them after a few days for payment and then it went through (her husbands paycheck from his new job didn't go in as planned) so I never did get charged but she did.
 
  • #35
I work M-F 8-4;30 (non-banking hours)
Wow, that IS inconvenient. All the banks around here have drive throughs open until either 6pm or 7pm.
 
  • #36
I've only had one check bounce, and that was from the host! I allow checks to be made out to me and will continue until it becomes a problem.
 
  • #37
I have checks made out to me and some shows are almost 100% checks, while some others have more credit card payments. As a guest at a DS show I will always prefer to pay by check and not worry that my credit card number is hanging out somewhere. I almost always wait for the checks to clear (I go to the bank the day after the show) before submitting the show, although it depends on whether or not I know the host/guests. I think guests should be entitled to pay in any way that is indicated on the sales receipt. I discourage cash unless it's exact because I don't carry any cash with me.
 

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