return check fee

[QueBert]

I do on-site computer work, typically I don't take checks from people unless I know them, or it's a company. I got my first check back last week, I know the company is good for it as I've done plenty of work for them in the past. But the bank charges me $25 per check. I'm going to have to make a trip back to their office to pick up another check.
I know for stores that take checks there's usually a $25'ish fee for returned checks. If I charge them $25 I'm basically just covering what the bank will charge. Since I'll have to invest time to go handle this. What is reasonable to charge them over the $25? I really don't know what any other single business people charge when it comes to this.

 

[bsobel]

Originally posted by: QueBert
I do on-site computer work, typically I don't take checks from people unless I know them, or it's a company. I got my first check back last week, I know the company is good for it as I've done plenty of work for them in the past. But the bank charges me $25 per check. I'm going to have to make a trip back to their office to pick up another check.
I know for stores that take checks there's usually a $25'ish fee for returned checks. If I charge them $25 I'm basically just covering what the bank will charge. Since I'll have to invest time to go handle this. What is reasonable to charge them over the $25? I really don't know what any other single business people charge when it comes to this.

Well, at a minimum what your bank charges you. I'd probably suggest your bank charge plus what you charge hourly based on how long it takes you to correct. That said, sometimes if your dealing with a good customer that made one mistake (not a series) that you will deal with again you might just eat some of the time component as good will...

 

[drinkmorejava]

If you plan on working with them again, I'd just charge the bank fee.

 

[QueBert]

I was thinking "good will" I wouldn't charge them a full hour rate, I was thinking bank fee + $15. This is why I don't like to take checks in the first place

 

[waggy]

Originally posted by: bsobel

Originally posted by: QueBert
I do on-site computer work, typically I don't take checks from people unless I know them, or it's a company. I got my first check back last week, I know the company is good for it as I've done plenty of work for them in the past. But the bank charges me $25 per check. I'm going to have to make a trip back to their office to pick up another check.
I know for stores that take checks there's usually a $25'ish fee for returned checks. If I charge them $25 I'm basically just covering what the bank will charge. Since I'll have to invest time to go handle this. What is reasonable to charge them over the $25? I really don't know what any other single business people charge when it comes to this.

Well, at a minimum what your bank charges you. I'd probably suggest your bank charge plus what you charge hourly based on how long it takes you to correct. That said, sometimes if your dealing with a good customer that made one mistake (not a series) that you will deal with again you might just eat some of the time component as good will...

Is it a good costumer? if so just charge what the bank charged (wich is what i charged everyone).

trying to make more money off this is a bad idea. people know that bank charges $20-30 for a returned fee. if you charge say $50 they are going to know you are inflating it. while doubtfull they do anything it will stick in the back of there head.

 

[QueBert]

Originally posted by: waggy

Originally posted by: bsobel

Originally posted by: QueBert
I do on-site computer work, typically I don't take checks from people unless I know them, or it's a company. I got my first check back last week, I know the company is good for it as I've done plenty of work for them in the past. But the bank charges me $25 per check. I'm going to have to make a trip back to their office to pick up another check.
I know for stores that take checks there's usually a $25'ish fee for returned checks. If I charge them $25 I'm basically just covering what the bank will charge. Since I'll have to invest time to go handle this. What is reasonable to charge them over the $25? I really don't know what any other single business people charge when it comes to this.

Well, at a minimum what your bank charges you. I'd probably suggest your bank charge plus what you charge hourly based on how long it takes you to correct. That said, sometimes if your dealing with a good customer that made one mistake (not a series) that you will deal with again you might just eat some of the time component as good will...

Is it a good costumer? if so just charge what the bank charged (wich is what i charged everyone).

trying to make more money off this is a bad idea. people know that bank charges $20-30 for a returned fee. if you charge say $50 they are going to know you are inflating it. while doubtfull they do anything it will stick in the back of there head.

I'd say they're a decent customer, call me out 3 or 4 times a year, the owner likes to haggle with the pay, but I know that already so I'll go anyways and let him try to lowball me ha. I'd never use a returned check to try to make money off of. But I do feel my time is worth money. I just got off the phone with them, they're going to send a check, since I don't have to drive there and waste my time and gas I just charged the bank fee.

 

[dullard]

I think many locations have maximums set by law. Look that up if you wish to charge more than the bank charges you.

But remember, these people have no money in the bank, just got a ~$25 bad check charge from their bank (banks charge both parties this fee), owe you money, AND on top of all that you want to recover $25+ from them to cover your fees. They just might not have the money for it all.

I would charge them the $25 only, and eat the few minutes of your time since you may want them as customers again (if they can straighten out their finances). Then come up with a good policy as to how you will deal with future problems.

Bad checks are just one of the many rotten things a buisness owner has to deal with.

 

[DrPizza]

Out of curiousity, how much extra time does it take?

A lot of people look at is as a sort of punishment rather than realizing how much extra effort it requires on the part of the place collecting on the bad check. Then again, it only takes extra effort for a few people, and minimal effort for the majority. Many people are embarassed about it (it's usually an unintentional accident caused by a mistake) and don't need to be made to feel worse by adding on an extra fee that's perceived as punishment.

For what it's worth, where I used to work we had a form letter that we filled out, including a line for the additional amount the person had to pay. We included this with a photocopy of the NSF check, and a photocopy of the page we received from the bank with the company's bank numbers blacked out on the original. Thus, we went out of our way to provide the customer with proof that we were only trying to recoup exactly what the bank charged us. Regardless, it amounted to 3 minutes of our time + postage. Only 1 time out of 10 did we have to wait very long for a customer to make good on the check.

Also, for what it's worth, a lot of places have signs up displaying their bounced check fees (we did too; I can't remember if it was legally required or not.) There were a few restaurants in the area that had $75 or $100 bounced check fee signs, along with quotes of what was allowed by law. I always thought less of such businesses as a result of their policies.

 

[waggy]

Originally posted by: DrPizza
Out of curiousity, how much extra time does it take?

A lot of people look at is as a sort of punishment rather than realizing how much extra effort it requires on the part of the place collecting on the bad check. Then again, it only takes extra effort for a few people, and minimal effort for the majority. Many people are embarassed about it (it's usually an unintentional accident caused by a mistake) and don't need to be made to feel worse by adding on an extra fee that's perceived as punishment.

For what it's worth, where I used to work we had a form letter that we filled out, including a line for the additional amount the person had to pay. We included this with a photocopy of the NSF check, and a photocopy of the page we received from the bank with the company's bank numbers blacked out on the original. Thus, we went out of our way to provide the customer with proof that we were only trying to recoup exactly what the bank charged us. Regardless, it amounted to 3 minutes of our time + postage. Only 1 time out of 10 did we have to wait very long for a customer to make good on the check.

Also, for what it's worth, a lot of places have signs up displaying their bounced check fees (we did too; I can't remember if it was legally required or not.) There were a few restaurants in the area that had $75 or $100 bounced check fee signs, along with quotes of what was allowed by law. I always thought less of such businesses as a result of their policies.

Bolding what i feel the important part. Word of mouth means a lot.

1 bounce check is a mistake. i make them pay for the charges i get from the bank. IF i get a 2nd bounce check (unless they are a great costumer) i would refuse checks anymore and charge them any fees i get.

When i see a sign saying "we charge 50 (or 100) for returned checks" i just don't shop there. but only one resturant in town does it. but they nickle and dime you to death. so we don't go anyway heh.

just charge whatever fee you get and send them copies of everything. that will take care of it (well in 90% of the time)

 

[QueBert]

Originally posted by: DrPizza
Out of curiousity, how much extra time does it take?

A lot of people look at is as a sort of punishment rather than realizing how much extra effort it requires on the part of the place collecting on the bad check. Then again, it only takes extra effort for a few people, and minimal effort for the majority. Many people are embarassed about it (it's usually an unintentional accident caused by a mistake) and don't need to be made to feel worse by adding on an extra fee that's perceived as punishment.

For what it's worth, where I used to work we had a form letter that we filled out, including a line for the additional amount the person had to pay. We included this with a photocopy of the NSF check, and a photocopy of the page we received from the bank with the company's bank numbers blacked out on the original. Thus, we went out of our way to provide the customer with proof that we were only trying to recoup exactly what the bank charged us. Regardless, it amounted to 3 minutes of our time + postage. Only 1 time out of 10 did we have to wait very long for a customer to make good on the check.

Also, for what it's worth, a lot of places have signs up displaying their bounced check fees (we did too; I can't remember if it was legally required or not.) There were a few restaurants in the area that had $75 or $100 bounced check fee signs, along with quotes of what was allowed by law. I always thought less of such businesses as a result of their policies.

well it's about a 20 minute drive, and gas is slightly over 3 bucks a gallon. I read what a lot of you said here, and I think it's more than fair to only charge the bank fee the first time. If it happens again things change. I am warry about accepting checks because some people never made good on a bounced one. But to answer your question, in this instance I'd say about 40-50 minutes of my time and a few gallons of gas. I do feel my time is worth month, but I also want to stay on good terms with my regular/semi-regular customers so I'll suck this one up. Technically I'm not loosing money any ways. Just a bit of hassle on my part.

 

[ColdFusion718]

Originally posted by: QueBert
I do on-site computer work, typically I don't take checks from people unless I know them, or it's a company. I got my first check back last week, I know the company is good for it as I've done plenty of work for them in the past. But the bank charges me $25 per check. I'm going to have to make a trip back to their office to pick up another check.
I know for stores that take checks there's usually a $25'ish fee for returned checks. If I charge them $25 I'm basically just covering what the bank will charge. Since I'll have to invest time to go handle this. What is reasonable to charge them over the $25? I really don't know what any other single business people charge when it comes to this.

I don't think it's a good idea to add an additional amount on top of what the bank charges you. It will leave a bad taste in the customer's mouth. Consider the extra legwork you had to do a "cost of doing business."

If it happens again, you can bill them an extra hour for "administrative work," but keep this separate from the bank's fees. For some reason, people just hate knowing they have to pay a BS fee for a check plus a markup on that. It makes them feel they're being taken advantage of, even though the fee was due to their negligence.

 

[sygyzy]

What gives a store the ability to charge such a fee or even enforce it. You have the situation of a person who passes a check with insufficient funds. At worst it's a criminal. At best it's someone who can't afford the product. So then after it bounces, you say "I am charging you $25."? That's great if you have the item on order or something you can take. But what if it's a supermarket and the person already left with his milk and eggs?

 

[gsethi]

What Bank charges $25 return check fee ? That is simply outrageous on behalf of the bank.

We get a couple of return checks every week and pay $7 for each returned check. Then I go and talk to the bank manager and he waives the fees (good relation with bank). But even if he doesnt, you shouldnt have to pay more than $10 or so for each check. Oh, yes, we do charge our customers $15 return check fee. Some of them will just pay it while others will whine a little and then we charge them 10/7/5/0 depending on the customer (just a cost of doing business).

 

[lokiju]

Originally posted by: QueBert

Originally posted by: DrPizza
Out of curiousity, how much extra time does it take?

A lot of people look at is as a sort of punishment rather than realizing how much extra effort it requires on the part of the place collecting on the bad check. Then again, it only takes extra effort for a few people, and minimal effort for the majority. Many people are embarassed about it (it's usually an unintentional accident caused by a mistake) and don't need to be made to feel worse by adding on an extra fee that's perceived as punishment.

For what it's worth, where I used to work we had a form letter that we filled out, including a line for the additional amount the person had to pay. We included this with a photocopy of the NSF check, and a photocopy of the page we received from the bank with the company's bank numbers blacked out on the original. Thus, we went out of our way to provide the customer with proof that we were only trying to recoup exactly what the bank charged us. Regardless, it amounted to 3 minutes of our time + postage. Only 1 time out of 10 did we have to wait very long for a customer to make good on the check.

Also, for what it's worth, a lot of places have signs up displaying their bounced check fees (we did too; I can't remember if it was legally required or not.) There were a few restaurants in the area that had $75 or $100 bounced check fee signs, along with quotes of what was allowed by law. I always thought less of such businesses as a result of their policies.

well it's about a 20 minute drive, and gas is slightly over 3 bucks a gallon. I read what a lot of you said here, and I think it's more than fair to only charge the bank fee the first time. If it happens again things change. I am warry about accepting checks because some people never made good on a bounced one. But to answer your question, in this instance I'd say about 40-50 minutes of my time and a few gallons of gas. I do feel my time is worth month, but I also want to stay on good terms with my regular/semi-regular customers so I'll suck this one up. Technically I'm not loosing money any ways. Just a bit of hassle on my part.

Have them mail it?

No gas wasted for you.

 

[jupiter57]

Originally posted by: QueBert
I was thinking "good will" I wouldn't charge them a full hour rate, I was thinking bank fee + $15. This is why I don't like to take checks in the first place

If they are a particularly good customer (give you plenty of work, pay promptly, etc.), then I would just eat the entire amount, although I would let them know how it affected you financially.
Most likely it was a mistake or oversight on their part, and if you forgive one of their mistakes, maybe they would return the favor should you ever mess up on your end.

If they are just an average, "dime a dozen" customer, just charge them your actual cost from the bank.
If they are a problem customer, charge them your cost plus an amount equal to your time correcting the problem. But be prepared for them to drop you as a contractor.

If you "don't like taking checks in the first place", maybe you should seek other means of income or stick to private parties. All businesses worth dealing with pay by check, it's a fact of life.

 

[dullard]

Originally posted by: sygyzy
What gives a store the ability to charge such a fee or even enforce it. You have the situation of a person who passes a check with insufficient funds. At worst it's a criminal. At best it's someone who can't afford the product.

State/local laws give the store that ability. They of course vary by location. Here is a good place to start, be sure to look at both the civil AND criminal penalties.

I see your profile says you are in California. In California, the law states the store gets the amount due + triple damages (no less than $100 and no more than $1500). So, if the store sues the person with the bad check, and wins, that is the penalty. Most people will settle out of court for a ~$25 fee rather than have the hassle of court and the $100-$1500 penalty. On the criminal side, if the check was <$200 and it was a first offense, the bad check writer faces up to one year in jail. That website doesn't state what happens if it is >$200 or if it is a multiple offender. I assume the criminal punishment is much greater in those cases.

Writing a bad check is against the law, and is a criminal offense in most locations. So, you need to alter what you typed above. In BOTH cases, the person who passed the check is a criminal. In one case, it was an intentional crime and in the other case it was an unintentional crime. But both are guilty of a crime. Writing a bad check is stealing. And even if you later make up for it, the store was still damaged by bank fees. Be glad the store only charges a fee (basically an out of court settlement) and doesn't call the cops.

I had a sister-in-law pass off a slightly larger than $300 bad check in Nebraska. She didn't know about it, until someone hit her car. She called the cops, they came, and arrested her for the bad check. It was a class 4 felony charge. Not a misdemeanor, but a felony.

 

[BoomerD]

If they're a good customer, then offer to let them cover the bank charges and call it good...if not...
http://ag.ca.gov/consumers/general/badchex.php
"California Civil Code section 1719 allows the receiver of a bad check to recover three times the amount of the check, up to $1500, in civil court if sufficient notice is mailed or delivered to the person who wrote the check. The damages are in addition to collecting the value of the check and they could include court and mailing costs. A cause of action under this law may be brought in small claims court, if the claim does not exceed $5,000, or in any other court of jurisdiction depending on the amount of the transaction."

 

[SampSon]

At one time we charged the bank fee only for the first time. Second time we charged double the bank fee and refused personal checks from the client.

Now we do not take personal checks, period.

 

[mugs]

If it's a customer you expect to make more money from, I would charge them $0. Not even the $25 fee from the bank. $25 is nothing compared to the money you could make from the company.

 

[sygyzy]

Originally posted by: dullard


Writing a bad check is against the law, and is a criminal offense in most locations. So, you need to alter what you typed above. In BOTH cases, the person who passed the check is a criminal.

I need to clarify: I know it's a crime in both cases. What I meant is one case the person did it on purpose and in the other case it's an accident.

 

[Kelemvor]

Can't you tell them to mail you a replacement plus the $25 bank fee? No need to add more on.