Accepting Checks

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Bob Carter

Bob Carter

SPFG, Supreme Picture Framing God
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While the debate continues on accepting AMEX or not, I am pretty sure I lose more money on uncollected and NSF checks than the differential between Visa and Amex. So my question is Does anyone not accept checks? Does anyone factor what your real losses are from uncollected checks?

We, thankfully, take less and less checks every month and our NSF's go down accordingly. But we know sure as Christmas is coming that this holiday season we will take some worthless paper. We used Telecheck for a while and found it to cost more than it's benefit.

How about the rest of you? For my point, I would gladly accept an AMEX rather than a check any day.
 
Bob,
We've had 2 bad checks in 10 years

Jerry
 
Bob,

We've had similar experiences like Jerry in a very small amount of NSF checks. I think this has a lot to do with the size of your city, which part of the country, the "nature" of your business, and the economy.

When Sarah (my wife....who by the way, REALLY runs our shop!) moved from Vancouver, British Columbia to Appleton, Wisconsin 6 years ago, she went from a climate where everyone used debit cards and InterAct to a climate where we accept checks WITOUT identification!

Yes, REALLY. Unless the check is not imprinted or has a very low starting sequence number, we will typically NOT ask for ID. Except for the Christmas Season, 50% of our business is checks, 40% credit cards and 10% cash. In 24 years, I'm thinking we've had about 12-15 checks not clear on the first attempt and only three not clear on the second deposit.

smile.gif
Funny Story - of the three bad checks, one was written by a small business State Lobby representative, as he went through town!
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John

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The Frame Workshop of Appleton, Inc.
www.theframeworkshop.com
Appleton, Wisconsin
jerserwi@aol.com
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Similar experience as John. Maybe that's because we're in the same city. Maybe 6 checks returned in 24 years, one of those uncollectable, and that was written by a monk. (Must be that vow of poverty thing.) Also, I've never had a charge-back on a credit card, though, of course, I've had a few declined during the authorization process. These days, I'm probably most leary of cash. The counterfeiters love these small cities, though they seldom seem interested in custom framing.


[This message has been edited by RonEggers (edited October 10, 2001).]
 
We've had two in the six years we've been around, one cleared the second time around the other one was settled with cash.
We have the ability to check cheques with opur EFTPOS machines but do not bother as there seems to be no need.
An important factor for reducing the number of bounced and false cheques I believe would be that we have the customers name, phone number, and address, from the work that we've just done for them it is actually pretty hard to fool us when they know we have this information.


[This message has been edited by Lance E (edited October 10, 2001).]
 
Lance,
What're you? 007? What is a cheque?

Sorry. I forgot I'm not on Warped right now. I'll behave.
 
I read once that when the credit card companies started their main promotion was selling retailers on the fee being cheaper than the telecredit type services and/or the time and expense of collecting bad checks or having lay away programs.

I think it is nuts for us retailers to be paying more for a debit card than a credit card (without the pin thingy), but I graciously accept which ever form of payment that my clients prefer to use.
 
3 bad checks since 1973. Two I knew weren't going to fly.
One was Christmas Eve 1989 and it was snowing in Florida. This huge guy walks in the shop, I'm alone with a pocket full of cash, and no one has been in for hours. He wants me to cash a check for $20.00, I said OK, and asked for ID. He gave me a photo ID from the Florida Department of Corrections. I gave him the 20 and was thankful to have gotten off so light.

My total in bad checks is less than $100.00. The issue of AMEX vs. checks is moot. (I would be taking AMEX if they hadn't screwed up my account so bad).
 
Good story, Wally!
Did your fine feathered friend manage to keep it's beak shut?
In 15 years in biz, many bad checks, but all cleared the 2nd time around. And many times the customer called to say to expect that, they were sorry and to just put it through again and they would pay the bank fees. Some of these folks are good customers still and goofed up only the once. Don't think we have ever had a need to check ID, either... as long as we have their address and phone.
For the record- we accept all plastic but did indeed raise our prices to cover the increased fees once we started accepting AMEX.
E the FG
 
In almost 6 years of having my framing business, I've never been given a bad check (I'm knocking on wood with one hand while my other one types this).
 
In seven years, I've had one bad check and that was from a young lady who spent half her formative years in my house as my daughter's friend. She made it good. Must be those N.C. people. I don't take AMEX because the demand is low...MC, VISA, and debit cards seem to do the trick. Probably 70% of payment normally (non-holiday) is via check.
 
We started with the CheckCare system...did cost a lot and took an inordinate amount of time to get a check approved which also served to insult most of our clientele.

I have had one check returned from a client. All the others were from business owners! Plus one artist who has yet to pay...but I have his art!

Most of the checks returned were from an interior designer who shuttled from framer to framer, depending on who she could still write checks with. I do cash only with this individual on the rare occassions she does come in.
 
The only plastic I have is my debit card. (I got into trouble with a real credit card in college, and I have yet to get another; I prefer to pay cash.)

But occasionally I go into places which do not have ATM machines nearby, and if I have no cash I prefer to pay with a check....and I go more regularly to places which do allow me to write a check.

So when I open a business I will accept checks; the last shop I worked at took, on average, about 40% of their sales through checks, and I think it's foolish to refuse them. I will do normal ID verifications, but I doubt I'll subscribe to those check verification systems because there are so many that it seems pointless to me; the only time a check will come up denied is if the last place they wrote it happened to have the same verification system I do. There is no "national registry" of bad checks.

And in my experience at the last shop I worked at, none of the checks ever came up hot.

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I don't care what color your sofa is.
 
Sorry Ron but I must agree with Lance - He can spell and he is right on the money -Hooroo - Alan

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Artificial intelligence is no match for natural stupidity
 
I've had one only 2-3 bad checks in 3 years and that was the trend for the previous owner. Most folks call to let us know or come in immediately when called. Only one person in three years that didn't make good.
We don't check i.d.'s. and we don't take American Express.
 
I handle under $100 a month in cash, 1 or 2 checks a week, and everything else is done with credit cards. We do take AMEX, which has proven to be to our advantage because it is almost always offered first in this area.

We don't ask for ID with checks. Of bad checks I've received over the years only one waws truly bad. The others were all honest (albeit stupid) mistakes made by people who ought not to have been allowed to carry the checkbook. "What do you mean there's no money in the account? I have all these checks left? Tee Hee"
 
At the frame shop I've had no bad paper in 13 years.My philosophy is if they come through the door they have the money. However, at our restuarant the opposite is true. They'er gonna eat no matter how they pay and we always have at least 3 -5 bad checks a month. Some of the time when you call them and tell them they can not get any more pizza until they make good, they are there within the hour.
 
Like Ron and John, we have a very low rate of bad checks, maybe one or two a year. We never check ID's since we know most of our customers or get to know them from working with them. Interestingly, I can't recall any bad checks on framing orders, just on photography. Most have made good on them with cash, credit card or money order. Only one that I recall we have yet to collect on and that was a bride who's final payment on her wedding bounced after she picked up the pictures. She moved and left no forwarding.

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Anne LeBouton
 
Wisconsin must be a nice place to live and be in business! (judging from the good luck you all have with accepting checks)

When we were in the craft business we took in 6-10 checks/year that were never made good. Many, many others (maybe a dozen/month) bounced before they made good. It was a real nuisance. In all that time, we only remember one bad check on a framing job. Most of the really big ones that were uncollectable were for WEDDING purchases. So, we decided to never accept checks for anything related to weddings.

We have had NO problems with checks (most customers use plastic now) since we opened our Frame Shop.

Linda
 
Thank goodness I have only had 2 checks and what was funny they drive $40,000 cars. One for $40. and one $156. thats all in ten yrs but all recent.Hope this isn't the times a head. Make a good Day

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Marilyn C
 
Did you know if you have a NSF check returned to you that you can go to their bank and IF the customer has enough money in their account to settle it, the bank will take the NSF check and hand you the cash. I've done it about 5 times and gotten all the money except for one in Mississippi. I thought about driving down just to make her day!!!
 
It is also possible to call the bank. They won't tell you how much is in the account but they will tell you if there is sufficient funds to cover they check. Save you a trip if the answer is no. Kit

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Time flies like an arrow; fruit flies like a banana
 
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