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Should I charge a check fee?


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Old 02-20-2010, 05:02 PM
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Exclamation Should I charge a check fee?

Businesses used to charge check fees but now they have stoped, I dont know why. because they bounce every now and then I have not personaly had any trouble "yet" however the part time job I have get over $1000 in bounced checks and other Business owners say they dont even except checks because of the ongoing proplem but since I charge on a monthly basis should I consider not taking checks, since just for mowing 1 time a week for 1 month would be at least $115 not many people would want to have that much cash on hand every month.what do you suggest?
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Old 02-20-2010, 07:05 PM
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Originally Posted by lawn mowering View Post
Businesses used to charge check fees but now they have stoped, I dont know why. because they bounce every now and then I have not personaly had any trouble "yet" however the part time job I have get over $1000 in bounced checks and other Business owners say they dont even except checks because of the ongoing proplem but since I charge on a monthly basis should I consider not taking checks, since just for mowing 1 time a week for 1 month would be at least $115 not many people would want to have that much cash on hand every month.what do you suggest?
I run two companies and accept cheques (Canadian spelling) and have never had one bounce in 14 years so I still take them and prefer them over credit cards due to the fees, we do not accept cash, it's a major pain during an audit in this business at least here. I am of the school if it isn't broken don't try to fix it, put on your invoices in bold $27.50 Service Fee for NSF Cheques
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Old 02-20-2010, 08:31 PM
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I agree with Andy.... You could take a chance on losing customers if you stop taking checks (American spelling ) Ive had 1 check bounce and all I did was tell them they need to cover the check and my bank fee in CASH!!!!!
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Old 02-20-2010, 10:22 PM
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all residential clients i have and future ones must sign a contract with me with specific guidelines. one of them is written as follows:

Checks returned for insufficient funds will be charged a minimum $50.00 service fee and may interrupt recurring services.

the reason i charge such a high rate is most banks will charge you if you try to cash or deposit a check and it bounces. the 50 is to offset that penalty and compensate me for the trouble.

I am starting monthly pre-billing this year. last year i did weekly. i mowed. u paid me within 3 days. some bad apples didnt pay me for up to 14 days. reoccuring services are halted until money is paid in full. and those bad apples forced me to demand monthly and only a select few who are very loyal customers can have the option to pay weekly or monthly. any future ones must pay monthly. i havent decided yet if this is the route i want to take or not. but i am covering all my bases in the contract so they know from day 1 what our general service agreement is and its in writing cause my word against yours doesn't hold up in court. you refused to sign a contract. find little billy down the street who dont do that and does a crappy job on ur lawn. scalping, leaving messes, no trimming. yes have seem all these problems from kids trying to make a quick buck only to be fired and the customer hires me for more money for a higher quality service.
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Old 02-20-2010, 11:34 PM
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Quote:
Originally Posted by lawn mowering View Post
Businesses used to charge check fees but now they have stoped, I dont know why. because they bounce every now and then I have not personaly had any trouble "yet" however the part time job I have get over $1000 in bounced checks and other Business owners say they dont even except checks because of the ongoing proplem but since I charge on a monthly basis should I consider not taking checks, since just for mowing 1 time a week for 1 month would be at least $115 not many people would want to have that much cash on hand every month.what do you suggest?
NSF fees are the way to go they will pay most of the time with good checks. I have yet to get a bad one. Most people pay me with a check they don't really keep much cash it seems with debit cards and checks they don't really need to.

I wouldn't stress it much. i'm not sure where you work part time I use to work, in a butcher shop, w would get rubber checks bouncen like crazy, most people that can afford lawn care actually have money! LOL
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Old 02-21-2010, 10:47 AM
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I use to work, in a butcher shop, w would get rubber checks bouncen like crazy
How did they handle this?
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Old 02-21-2010, 08:51 PM
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In certain instances it is illegal to add a fee based on the type of payment accepted. You can not charge a higher fee for credit cards etc. It all depends on where you are located.
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Old 02-22-2010, 08:53 AM
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You can not charge a higher fee for credit cards etc.
I think that is located in your merchant account agreement with the credit card service.
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Old 02-22-2010, 09:30 AM
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If the check bounces, everyone pays a fee. Your customer should know that by not giving you a proper cheque, the bounced cheque will cost her even than your service.

The best thing to do with cheques is make sure your customer pays you with them in advance, so there is enough time for it to clear or... bounce

I hate cheques only because I have difficulty tracking them. When you have many cheques clearing at the same time, it's hard to figure out who's paid for & who's not.
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