NSF checks....

[JeffK]

Our hair salon gets about 10-15 checks per week.. 1-2 in the tanning..

We get one NSF about every 2 months..

Our bank has started a service whereby they try to collect it for us, I believe by working with the other bank and checking the account daily to see if the funds are there.

100% success rate so far. We haven't even had to contact the clients ourselves.

The bad part is we no longer can collect a $35 NSF fee. But the good news is I don't have to have a negative interaction with the client, and thus they aren't embarassed.. so they usually come back..

But yes, at least in our circumstance, checks are still a common form of payment.

[Ben Around]

We quit accepting checks two years ago. We have had no problems, they just use their debit card.

[Beach Bum]

We get 1 to 2 checks a day. Mostly from older clients who are just stuck in their ways. We'll have 1 or 2 bad checks a year. Normally collect all of them.

If you take alot of checks, definetly get an electronic reader. But even with 1 or 2 a day thats not really worth the expense, IMO. Just freeze their tanning package until they pay it. Even if the check was for lotion they still probably have a tanning package.

[bronzebeast]

do you have to pay a montly fee for the electronic check reader service? How much and can any merchant provider do it? Must i use their equiptment?

[Beach Bum]

You typically buy, or lease their equipment. Will probably cost approx $500 to $1000 to buy. Then they also take a tranaction fee. Either a % of the amount or a flat fee for each transaction. There may also be a monthly account fee too. Pretty much like credit cards.

Another option is to use a check service company to collect only your bad checks. They add a collection fee straight to the customer. So you basically are charged nothing per check. However most charge you a monthly or annual membership fee, but most will waive it if you negoiate.

The con with this method is it is a hard collection and they add their fee on top of the banks fee. So the customer is really hit hard. The customer may never do business with you again due to this. But, you may not want them back anyway. But if it was a customer who made a careless mistake, this may not be what you want.

[JaneT]

We've only had 1 this year, which we were able to collect on. Our charge is $50

[kpowr82]

Originally Posted by Beach Bum

You typically buy, or lease their equipment. Will probably cost approx $500 to $1000 to buy.

I have a card and check reader all in one that I bought on ebay for $150 each. It's a Magtek, no cheap knock off. I know there are a few web based companies that will allow you EFT funds with a check reader and check. One is Global Payment Systems. It's gonna cost you about 5% per check, more than CC fees.

If you've got a checkbook, you can get a debit card, FREE. No reason to try and accommodate people stuck in the 70's. What if you went to the bank and the teller was using an abacus? Is it okay cause the teller is 90 years old?

I also don't accept AMEX. If you've got an AMEX card, you've also got plenty of others. I've never lost a sale due to AMEX or checks not being accepted.

You run a MUCH higher risk getting burned by accepting either one of those methods of payment.

[CROVINE1]

Last week I cancelled my check reader service. I no longer except checks. Only get maybe 8 a year. 5 buy the same person. I have a Ingenico eN check 2500, if someone wants it for shipping cost only!!!!

[esun]

Up here in Ver-mont we have lots of people still using checks.
Hell, we just got flush toilets and 7 digit phone numbers not that long ago and cable TV is coming around now so those debit card thingys you all talk about should be coming in the next few years or so.

[Beach Bum]

Originally Posted by kpowr82

I have a card and check reader all in one that I bought on ebay for $150 each. It's a Magtek, no cheap knock off. I know there are a few web based companies that will allow you EFT funds with a check reader and check. One is Global Payment Systems. It's gonna cost you about 5% per check, more than CC fees.

If you've got a checkbook, you can get a debit card, FREE. No reason to try and accommodate people stuck in the 70's. What if you went to the bank and the teller was using an abacus? Is it okay cause the teller is 90 years old?

I also don't accept AMEX. If you've got an AMEX card, you've also got plenty of others. I've never lost a sale due to AMEX or checks not being accepted.

You run a MUCH higher risk getting burned by accepting either one of those methods of payment.

Good point. There's always other options. Especially looking for used equipment. That's always a cheaper route. As long you can spend the time finding it and getting it set up you will save $$$$.

I don't have a problem with Am Ex. The people who like to use it are unique individuals. I think they just like to flaunt it. They also seem to be the some of my highest spending customers. But it does cost more to accept. But for me I find it is worth it.

[Dmc5]

I use Crescent Processing for my charge cards, and an electronic "check validator." (I have no idea what it's really called) is an additional $20 per month, with a very nominal tansaction fee. The terminal is free with a 2 year contract. It's a cool set up, as in, they don't even have to make out the check, and you don't keep it, either. They get it back as their reciept w/ the info printed on the back. You just enter the amount into the charge terminal, and feed the check thru. Machine does the rest. Funds are verified, and your ass is covered.

Word to the wise, and I have mentioned this before on other threads:

You may not be able to prosecute a bad check writer for your funds, if any portion of the check was written for "services" (tanning) rather than "goods" (lotion). You would be wise to contact your local prosector's office to find out what the policy is in your county. And it will be a lengthly process if you are lucky enough to go forward. Also, you can RARELY GET ANY SATISFACTION AT ALL FOR LESS THAN $100. So in other words, if they choose to bring the funds in, great, if not, you're probably screwed, and in my experiance, the client knows this, and has gotten away with it before. They know to stay under a hun.