Forums: Discussions for entrepreneurs and small business.

Check Guarantee is an optional service that should be available to you from your Credit Card Processing Company.  You do the check guarantee through the terminal itself.  What you do is type in the check writer`s info into your terminal.  The terminal will dial out and check against a database of bad check writers.  If that person is not in the database, you will get an approval number that you write on the check.  If when you deposit the check the check bounces for having insufficient funds in the account, you will be paid within 7 business days regardless of the check bouncing as long as you have the approval number written on the check.

There are additional fees to this type of program so you need to weigh out whether or not it`s worth it for you, but with $100+ checks, it`s probably worth it for your business depending on how many bad checks you are really seeing.

I can`t speak for your processor (if you accept credit cards already), but I know with my company, check guarantee fees are as follows (just to give you an idea and give you some numbers to crunch)

Monthly Check Guarantee Service Fee: $10
Monthly Minimum:  $25 (equal to about $1700/month in checks)
What you pay per check:  1.49% of check amount + $0.19/transaction

I hope this info is helpful for you.


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Oliver Mupas
United Bank Card
866-207-6007 ext 303
omupas@ubcnetworkonline.com

Another option is the old fashion option.  Notify the person that they have one day to make good on the check or you turn the case over to the police.  You can also file a small claims court case or stop accepting checks without a bank guarantee card.  You can also invest in a check validator.  It is similar to a swipe credit card machine.  The check is run at the time of sale.  You know instantly if the check clears.  All check stands at WalMart have them.

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

BTW - I think you totally handled it appropriately.  You talked to her privately, told her the situation, gave her the opportunity to not have her service that day and explained that you expected to be paid in full and that she`s not going to have the privilege of writing checks for services anymore.  The only person  she SHOULD be upset at is herself.  She should have been totally embarrassed.  YOU didn`t cause her check to bounce.

One thing I don`t like is the "lay it all out there" approach.  A fruit stand near me has the habit of making LARGE BANNERS with the names of those who pass bad checks.  They hang it on the outside of their building.  It tells  those people to come back and PAY THEM.  It`s a ridiculous way to handle the situation that just makes others uncomfortable. 

~Kim

How many bad checks do you get?

Because which is worse ... losing $2 on $100 or not getting the $100 because the check bounced?

I received a bad check about two years ago and this is what I did. I sent a certified letter with a new bill and added to it was a fee for the bounced check. The bad check client called me and we set up a time to meet where she would pay me in cash what was owed and I would give her check back.  Well, this went on over a two week period, with three no shows to make good from this lady. I had two choices: One was to let it go and Two was, ASAP, go down to the magistrates office with my copy of certified letter, returned receipt, the check and my original receipt. I chose number two and it took about seven months to get my money. The people waited until the very last day, before they were to be prosecuted. I have since seen this former client around town and believe it or not, the woman speaks very highly of me to others. It is a strange thing after what I had to do for my business, but a good thing too. I have not gotten another bad check since then. Most business owners in my same service simply hang bad checks on the wall, while never pursuing because it takes your time and is frustrating, but I figured if I went after this bad check, that it would prevent more to come my way. Word of mouth does get around and like I said, knock on wood, that is the only bad check I`ve taken in close to five years now. Good Luck and hope this helps.

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AJ

Here is something to keep in mind on bad checks.  You have a limited time frame to get police action on a bad check.  If you hold the check to long waiting for your customer to make good on it, you may not be able to get the case filed with the local police. 

 

Most honest people when told one of their checks bounced will try and make good on it immediately.  The chronic bad check writers though will try and get you not to take action by continuously promising to make good on the check.  But, they don’t ever seem to have the money or be able to connect with you.

 

I base this advice on 12 years in law enforcement and having been married once to a chronic bad check writer.

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

I think I am going to insist on money orders or credit/debit card. I am not
going to chase down bad check writers, especially as I am promoting
internationally. I would say let customers know that the police will be
contacted if it is not rectified within 24 or 48 hours. Give them a chance if it
is the first time. After that, contact law encforcement if they don`t rectify it
right away.

I know this might be a hassle, but is there anyway that you can call the bank and verify that the check is good before you let the customer leaves. Might be a headache and I am not even sure that this would work. I don`t deal with checks, never had too. Just something that poped into my head.

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The ConsumerTreehouse.com Team
www.consumertreehouse.com

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Janene
Founder & President
Trending Solutions
614-939-4133
http://www.trendingsolutions.com

Send them to collection agency. There are a LOT out there and they can work very well.


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My site: www.entreplanet.com

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