How to deal with bad checks?

In our business, a bad check for any related product or service causes the entire industry to be made aware of the situation.

Our personal terms are understood to be "Delivery Two weeks after check clearance".

If a bad check is passed, I send it back with a note stating 'cash in advance only'.

When I was still shooting T&I I would give the coach #10 envelopes that I had printed with the package prices about a week before the shoot. I then collected the money and envelopes the day of the shoot, and delivered the finished shots back to the coach to distribute to the team. If a check bounced then I didn't deliver any finished prints for that player until I received cash for the amount of the package and the returned check fee.

I wait 4-6 weeks before sending out pictures paid for with a check. Plus charge $50 on a returned check. The rodeo Assoc's I work with sometimes will cover the check. They most of the time will put them on the bad check list that gets published in the news letter. That keeps them paying. I would contact the association maybe they will keep them from competing until the bill is paid in full.

In Texas, most county attorney offices have a "Hot Check Division" or something similar. It'd probably be more productive to go that route rather than via the police.

I starting noticing it a lot in December, I think i racked up almost $400 in bank fees alone, I got 80% back after sending invoices and follow ups and just wrote off the rest, since then I get several every shoot and have extended my delivery times to two weeks now and wait for everything to clear. Unfortunately not taking checks isn't practical business. I have opened another business checking account with a second bank where the fees are lower and if I have any questions I run it through that bank account, at least I drop my fee from 20 to 8 a check now. I still collect but sometimes it isn't worth it over 15 or 20$. I think it is part of the business now with the economy unfortunately

What most DA's will ask is you attempt to make good with the customer, and this includes recouping your lost fees. After that 1 attempt is made you have a couple options, police may attempt to help, but more than likely will not make an arrest. The best option is to contact the customer one last time and tell them you will be contacting that counties district attorney and filing charges, this will take care of 95% of bad checks. If this niceness does not work, go and file it with the DA and most will file charges and they will settle out of court for the payment owed plus court filing fees. People get scared when jail time is a real option. If none of this works go to the hearing and laugh cause the idiot will be going to jail or getting a pretty good fine or both over some pictures that really cost no more than their cable bill.

Don't just pass on the dishonor fee, have your own fee to cover your time and trouble.

A. Never produce work until the check has cleared. If at all possible, collect and advace or deposit of some sort so that your cash flow never reverses--you always have money from the client to cover the expenses of your next step in the job.

B. Take credit cards. The merchant service I use costs me $7.95 per month and 2% of each transaction. In my portrait work, I use a terminal that has "Store and Forward" so that I can accept the transaction in clients' homes as "swiped" (which is much cheaper per transation than "non-swiped") and then upload them later. In your case, you might have to use an actual wireless terminal so that you can get approvals on the spot.

C. Never delay depositing checks--make sure to deposit them the morning of the next business day (which means always have your business account in a bank with a local branch).

Trying to get people prosecuted for bad checks is difficult because prosecuting a criminal case normally requires proving the person intended to swindle you when he wrote the check.

Not only is the intent difficult to prove, but most likely there was no criminal intent just lousy money management--the money was probably in the bank at the moment the person wrote the check.

RDKirk wrote in post #7631260
Trying to get people prosecuted for bad checks is difficult because prosecuting a criminal case normally requires proving the person intended to swindle you when he wrote the check.

Not only is the intent difficult to prove, but most likely there was no criminal intent just lousy money management--the money was probably in the bank at the moment the person wrote the check.

See my note above: this is why the DA asks for you to make a "reasonable" attempt to take care of it with the customer. After that a criminal act has taken place not just a mistake.

RDKIRK,

Care to share your merchant ? Feel free to send it in a PM, I have been looking for months for something reasonable

Thanks

For CC I have a merchant account through my bank and I can call an automated 800 # and process the card over the phone. The fees are more than RDKirk's $7.95 but the convenience of it is worth it since I can process a card any where I have a cell signal or a land line.

Edit: RDKirk, where did you get the terminal with the store and forward, or at least what is the manufacturer and model number? I haven't seen one like that before, but that is something I would like to look into.

It's a little unlikely that the local DA is going to do much about a bounced check. They are not bill collectors.
Most of the time only serial bad check writers hit the radar. Everything else is declined as a civil dispute.
Take em to small claims

[QUOTE=RDKirk;7631260]​A. Never produce work until the check has cleared. If at all possible, collect and advace or deposit of some sort so that your cash flow never reverses--you always have money from the client to cover the expenses of your next step in the job.

This would be difficult to do with my situation. I deliver all of the pics to the coach who delivers them to the parents. It would be hard to make multiple deliveries, plus I would have to split up my orders to the lab and wind up paying multiple minimum lab fees for the small orders. I get lots of checks sometimes it takes a while for my bank to notify me. I have a two week turnaround with all teams that I shoot.

B. Take credit cards. The merchant service I use costs me $7.95 per month and 2% of each transaction. In my portrait work, I use a terminal that has "Store and Forward" so that I can accept the transaction in clients' homes as "swiped" (which is much cheaper per transation than "non-swiped") and then upload them later. In your case, you might have to use an actual wireless terminal so that you can get approvals on the spot.

I would love to know which CC merchant you use. PM me if you would.

C. Never delay depositing checks--make sure to deposit them the morning of the next business day (which means always have your business account in a bank with a local branch).

I really need to get better at this. Great advice all around.

Thanks

Sidnye wrote in post #7638127
It's a little unlikely that the local DA is going to do much about a bounced check. They are not bill collectors. Most of the time only serial bad check writers hit the radar. Everything else is declined as a civil dispute.
Take em to small claims

in most larger populated counties the DA's office has a special "unit" that takes care of this. How will they know if they are a habitual bad check writer unless you turn them in. Most small claims court cost/time value of money will not even be recouped with the cost of childrens sports portraits.

Over 35% of crime is never reported, due to people not thinking it will do any good. Crime services (police, DA, FBI) do look at Uniform Crime Report (FBI report on all reported crime) and this helps them adjust there officer counts, special units, patrolling, investigations, etc. If they see this is a real problem than they may devote a "unit" to this, but this is why it is important to at least file a police/DA/Sheriff Dept report.

mutau052 wrote in post #7640890
in most larger populated counties the DA's office has a special "unit" that takes care of this. How will they know if they are a habitual bad check writer unless you turn them in. Most small claims court cost/time value of money will not even be recouped with the cost of childrens sports portraits.

Over 35% of crime is never reported, due to people not thinking it will do any good. Crime services (police, DA, FBI) do look at Uniform Crime Report (FBI report on all reported crime) and this helps them adjust there officer counts, special units, patrolling, investigations, etc. If they see this is a real problem than they may devote a "unit" to this, but this is why it is important to at least file a police/DA/Sheriff Dept report.

Yes--report to the police/sherriff. They are the gatekeepers. From there it goes to the DA if it warrents prosecution---and most do not, unless as I said it is a serial bad check writer.

I'm just saying that those who think the DA will come out guns ablazing will be disapointed.