Taking checks

[mmotley]

So it only happens about 3 or so times a year, but every once in a while we get a bad check. Out of the 3 or 4 bad checks, 1 or 2 are an honest mistake and gets corrected immediately with cash or CC. How many shops out there are operating as a cash or CC only business? I've thought about it many of times, but it's hard to make that change when we have a lot of customers come in and write $1,000+ good checks. 

[tyrguy]

We take checks all the time. If I hadn't looked, I would have said we take 3 or 4 NSF checks a year. But I just checked and we have taken only 1 in the last 4 years!! It seems like people just don't bounce checks as much as they used to. We do have a few restrictions though. Unless it's a customer we know, we don't take checks that are written on a bank out of our county. Secondly, we limit 1st time customers to $500. Thirdly, we don't take "starter" checks. Lastly, if it is a first time customer, we make a copy of the check and driver's license together and keep it until the check clears.

[PherBag]

We don’t take checks. No reason to nowadays unless they need to float it till Friday. It seems mostly elderly people want to use checks. I am sure they do bc it’s what they are used to it, but they are fine with debit cards when we ask for it instead of a check.


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[JimO]

Problems with checks were more common years ago when checks were more common. We still accept checks from customers that we know and because of that restriction we have not had a problem for many years. The expectations of the general public for us to accept a check has diminished over the years due to the overwhelming prevalence of credit cards. 

[Guest]

We take checks regularly and don't get any coming back. We give a 2% discount for checks or cash so we're giving the credit card processing fees to the customer instead of the bank. Maybe the goodwill helps to make them think before they write it.

[OTPAuto]

I also am very selective about who I take checks from. Only people I know personally, or are good regular customers already.

[xrac]

On 10/18/2017 at 11:58 AM, tyrguy said:

We take checks all the time. If I hadn't looked, I would have said we take 3 or 4 NSF checks a year. But I just checked and we have taken only 1 in the last 4 years!! It seems like people just don't bounce checks as much as they used to. We do have a few restrictions though. Unless it's a customer we know, we don't take checks that are written on a bank out of our county. Secondly, we limit 1st time customers to $500. Thirdly, we don't take "starter" checks. Lastly, if it is a first time customer, we make a copy of the check and driver's license together and keep it until the check clears.

The restriction you have a very smart business.  I would add that we ask for Drivers license numbers, birthdays, and work numbers for checks from people we do not know.  Returned check were pretty common 15 years ago but now I only have 2-3 a year that I have any trouble collecting.  A returned check is just another cost of doing business like credit card fees is the way I look at it.  Imagine my suprise when I collected about $1,000 last year on a returned check that was about 8 years old.  Some checks we send through the local prosecutors office and some we use our attorney that does collections. 

[zach]

I only accepted checks my first 6 months in business. I got burned on some checks, then made payment policy NO checks. . . . Seven years later its been no problem.  I just inform customers of the payment policy and I have no trouble. And I always get paid with this policy.

[alfredauto]

We take checks, 99% are from locals I know. Old school types. When someone calls and asks if we take checks I'm suspicious I say we do no problem but they get run through the machine. Eliminates confusion.