Bounced Checks

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What do you charge customers for bounced checks? We are updating our policy and want to make sure it's reasonable and within industry norms.

Currently we collect the bank charge, but nothing for our bookkeeping costs and inconvenience costs. Is it reasonable to charge more than the bank fee? How much more?

 

[Johnny Best]

Who uses checks anymore, "In God we trust all others pay cash". Unless it's from a large corporation or bank I am doing work with.

 

[Gino]

We upped ours to $65. about a year ago. It's almost all company checks or credit cards anymore. Can't remember the last check that bounced, but yesterday, a guy's credit card receipt stopped 1/2 way through and said declined. He made a phone call and 5 seconds later, the card went through. It wasn't much, like 6 hundred some dollars, but still, I didn't know you could fix it that quickly.

 

[Stacey K]

We upped ours to $65. about a year ago. It's almost all company checks or credit cards anymore. Can't remember the last check that bounced, but yesterday, a guy's credit card receipt stopped 1/2 way through and said declined. He made a phone call and 5 seconds later, the card went through. It wasn't much, like 6 hundred some dollars, but still, I didn't know you could fix it that quickly.

His card probably flagged it because of security settings and a quick phone call released payment. He just had to OK the purchase.

 

[ChaseO]

$50 dollars, and I think the bank charges me 30 dollars. I do take a lot of checks, but it is rare for them to bounce.

 

[Scotchbrite]

Most of our payments still come as checks. We've had a few customers want to setup ACH payment, but we haven't gone ahead with that due to fees we'd have to pay.

In 20+ years I can only think of 2 times we've had a check bounce. We average over 1,000 transactions a year so whenever this comes up it surprises how few we've had.

 

[SignDesignLady]

We do a lot of business with tax exempt entities and they usually prefer to pay by check. Thankfully I have yet to have any that bounced. Thanks for the information on fees for this, hadn't thought about it. Just more concerned with those who don't want to pay at all.

 

[Stacey K]

I get a lot of checks, none bounced so far.

I have one bar owner who always pays in cash and he always plays dumb and tries to short me. Drives me nuts. Always count your cash immediately in front of the customer no matter if they are your friend or number one customer.

 

[Gino]

I get a kick outta people who come in to pick something up and KNOW the amount and will say, so that's $XX amount, right ?? I'll usually say, you're close if was $XX + a lot more. Then, these mental midgets will say, no-o-o-o-o....... you said ba-dum-bum. Works every time.

 

[RabidOne]

I get a lot of checks, none bounced so far.

I have one bar owner who always pays in cash and he always plays dumb and tries to short me. Drives me nuts. Always count your cash immediately in front of the customer no matter if they are your friend or number one customer.

That guys employees must love him.

 

[gnubler]

That guys employees must love him.

I worked at a shop once where on paydays all the employees rushed to the bank at lunch to cash their paychecks. Almost every time the last employee to get there (often me) didn't get paid that week...NSF. By then Bossman was already gone for the weekend and it dragged on into the next week. One woman's mortgage payment bounced because of her bad paycheck and she quit. I left after a few months when another shop bought me out.

 

[Johnny Best]

I get a lot of checks, none bounced so far.

I have one bar owner who always pays in cash and he always plays dumb and tries to short me. Drives me nuts. Always count your cash immediately in front of the customer no matter if they are your friend or number one customer.

Worked at a sign shop in the 70s that all the employees on Friday after getting their paycheck would go to the bar next door to cash them.
their checks and drink. Some old bar hag owned the bar and like Stacy I learned to count the money when she handed it to me. Thought I was rich making $6 an hour with a 40 hour week.

 

[Notarealsignguy]

Isn't it illegal to bounce a check?
Only had one person ever bounce a check and it was because her paycheck, from Palm Beach County, bounced. Apparently the payroll for the entire school district did for some reason but they paid for all of the NSF fees for everyone. Back then, people would float between checks since they actually had to clear which took a little time. Much harder to pass a bad check today.
I'd just ask for whatever the bank charged me.

 

[caribmike]

What do you charge customers for bounced checks? We are updating our policy and want to make sure it's reasonable and within industry norms.

Currently we collect the bank charge, but nothing for our bookkeeping costs and inconvenience costs. Is it reasonable to charge more than the bank fee? How much more?

Over the 20 years that we've been in business, we've had only two bounced checks. We have a sign that says we charged $50 NSF Fee.

 

[John Miller]

Had a check bounce last week. Client emailed me two days after giving it to us asking if I could hold it for a few days. SORRY, I deposit them electronically the day they come in. Bank charged me $20, that's what I want back.

 

[Eforcer]

What do you charge customers for bounced checks? We are updating our policy and want to make sure it's reasonable and within industry norms.

Currently we collect the bank charge, but nothing for our bookkeeping costs and inconvenience costs. Is it reasonable to charge more than the bank fee? How much more?

I haven't had a bounce check in a decade. But I never charged more. Just the fees the bank charges. Keep it a warm relationship and move forward.



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[Stacey K]

Isn't it illegal to bounce a check?
Only had one person ever bounce a check and it was because her paycheck, from Palm Beach County, bounced. Apparently the payroll for the entire school district did for some reason but they paid for all of the NSF fees for everyone. Back then, people would float between checks since they actually had to clear which took a little time. Much harder to pass a bad check today.
I'd just ask for whatever the bank charged me.

It's a civil matter that amounts to a misdemeanor if it's under $2500. If it's over $2500 then it's a felony - in Wisconsin.

 

[PatWhatley]

We upped ours to $65. about a year ago.

How are you getting away with that? The maximum amount allowed in PA is $50.

 

[Gino]

If ya noticed, I said I can't remember the last time it ever happened. But thanks for the update on my numbers. I think I'll put it up to an even $100.00 this spring. Then, if I need to collect, the government will take half and I'll be good for about $15.00

 

[Stacey K]

I'm usually a rule follower but...if you charge $65 who is going to know the law states $50? If they bounce a check and then call you out on your $65, then play dumb and go with the $50.