|
Check
Home
Service
Benefits
Pricing
Opportunity
Info
FAQ's
Online Form
There was a time, even though I can barely remember it, that you could
take a check from a customer and pretty much feel comfortable that it was
good. Times have changed and now you wonder if the person writing it is
really that person. With the available software, you can't even be sure that
the check is their account. It is also very easy to get all the fraudulent
identification they need for very little money considering the return they
can get in just a few hours. There is virtually nothing you can do about fraud.
There are several ways to cut down on the number of uncollectable checks
you get. The biggest deterrent is to have a camera take the check writers'
picture. Dishonest people will not let this happen if they have any brains at
all. You don't have to ask them to stand on a line while you take their picture.
You only have to have a security camera pointing at them with an obvious sign
that lets them know you are filming all transactions taking place at the register.
Even with that, there some that are bold enough (or just plain stupid) to do it
anyway. The second group of people that you will get a bad check from is the ones that
know that they don't have the money in the bank but figure that they will worry
about it when it bounces. You won't be able to fully protect yourself from them
either. You can employ a company to verify checks at point of sale that will only
tell you if they have another hot check out they have not paid yet. This system
is not perfect either. There is more than one data base of files on bad check writers.
Until the information merges into one single data base, which I don't see happening,
you are still taking a chance. Your chances are better than if you did not verify
checks. I recommend that you pay for the verification because the fee usually
ranges from .10 to .15 per check. Considering the small amount you will pay it
is worth it. You will also have to lease or purchase a check reader. Leasing runs
anywhere from $30.00 to $40.00 per month and to purchase is about $300.00 each. The next group are the ones that will hope they can get their paycheck in the
bank before the check hits. These are basically honest people that may just be
going through a crunch or have a hard time making ends meet. They will usually
contact you within a couple of days from the time you get the check back from
your bank. They are usually very apologetic and come in to pay for it within a
couple of days. In the meantime, you still don't have your money. You should
have a collection agency with the means of electronic representment to do this
for you. They can usually have your money in your account before the check
writer will be in to pick it up. You don't have to call the customer and wait
for them to come in. Some agencies will even refund the bank charge to the merchant
for their trouble. Another subject that should be addressed here is online checks. More than
70 million consumers have bank accounts but probably only half have credit cards.
Online merchants are excluding these customers by not accepting checks online.
With online checks as well as POS checks you cand find out usually within 48 hours
if the checks are good. You will have to employ a company to do this for you but it is well worth it. Fees usually range from a flat rate of up to $1.25 per transaction or
a percentage of the sale plus a transaction fee. I would never recommend that anyone use a company that charges a percentage. The transaction costs the company a flat
rate and the percentage is just taking money from the merchant that is theirs
to begin with. Online merchants don't have to ship the order until they find
out the check is good and if it is, the order can be shipped faster and your customer is happier.
If it isn't, then the company doing the processing for you should be able to collect it for you
or you are using the wrong company. Any company can verify funds available and electronically
collect the check if the money is in the account. If they can't or won't, then
you are using the wrong company. Make sure that the company you intend on using does the processing electronically and not with just paper drafts. Paper drafts are completely legal
but are not a fast as electronical transmissions. Besides, the cost is the same.
Outright fraud or deception is something
no one can do anything about except maybe the local DA. That is if they ever get caught and prosecuted. That still doesn't guarantee you will see your money. With all this in mind, here are some things you can do to get the best
possible coverage for your buck. Obtain full information on the check writer.
Full name, address, work and home phone, DL# and state. Ask for other types of
ID such as charge cards, library card and social security. Take all precautions when accepting checks. It is well worth the effort.
Title: Being Smarter Than The Check Writer |
MaticTM