Customer bounced a check

[Sherry]

I just had my first customer to bounce a check.  She called me up and apologized and then asked that I not charge her a bounced check fee.  Since this is my first time dealing with this issue I said yes.  Something in the back of my mind was telling me that I'll also be charged by my bank for cashing a check with insufficient funds, but I wasn't sure.

I called my bank and found out I'll be charged $35.  Luckily they said they'd waive the fee, since I haven't had this happen before.  Shew!  Anyway, I've decided I'll need to add that to my Booking Contract, that bounced checks will be charged a fee.

I wonder if this lady even knew that I'd be charged a fee?  Because I was surprised that she asked me not to charge her a fee knowing that I'd probably have to pay a fee for depositing the check.  Anyway, I'm giving her the benefit of the doubt that she must have been clueless that we'd both be charged a fee for the transaction.

[ChaCha]

Yuck!  I have stated cash or paypal only, and then have accepted checks at "my discretion".  I think I need to just stick to my policy.  Paypal works great, because if they need to "charge" it then they can.  Your bank sure was nice to waive the fee!  Hope you get your monies from your client!

[Sherry]

Yeah, I believe I will get the money, she sure seemed to feel bad about it, so I believe she's sending the money right off.  I guess it was a simple mistake, she wrote the check on the wrong account.

The only thing I don't like about Paypal, is the percentage they keep, that always irks me, but maybe I just need to charge more for using the service.

This pricing talk reminds me of something that happened the other day.  I had a customer call price shopping.  After I quoted her the price, she said, "I guess you would have to be the only entertainment then?"  I wasn't sure what to say to that.  She was in essence saying it was too expensive I think and sounded a bit annoyed.  I ended up saying, "That would be up to you."  She got off the phone and didn't end up hiring me.  I was a bit surprised at her statement, because I think I have really good rates.   

[ChaCha]

People always amaze me.  No matter what business I'm working with them in.  I have been meaning to calculate my "conversion" rate.  (number of inquiries vs. number of bookings).  You really have to look at it like some people can and do afford a mercedes and some dont.  What's amazing is some people have said "wow I thought you would be much more expensive" and then you get the "gee, really?".  Insult to injury is someone asking you to discount, you do hesitently (sp?) and then never hear back from them.  lol.
I think it's because perceived value is different with everybody.  Glad to hear you will be getting your $$.

[Kristal]

I've had two bounced checks - so crappy! I did get the money from both of them (+$25) but a helluva lot of run around.

Since then I say cash only on the day. I will accept company checks, and I will occasionally accept personal checks at my discretion, and haven't had any more problems with that.

I just started taking PayPal because of last minute bookings (and will only offer PayPal as an option if it's really close to the event day), as I much prefer depositing a check in advance. I'm not a huge fan of getting charged, but it's only something like 3% and A)I have my guaranteed retainer, and B)I will be writing off the % under expenses come tax time. I've not been charging extra to cover the rate for retainers, but if someone was to want to pay the balance with PP, I might consider adding a few bucks to the bill.

(And I hate that pricing stuff too, lol. Although I hear that if you get a fair share each of people thinking you're too cheap and too expensive, you're priced right )

[ChaCha]

Kristal I love that comment about some thinking you're cheap and some too expensive.  I had a clown tell me when I first got started the going rate for my area was $75/hour and that there was no one currently doing it.   (so, how would he know what the "going rate" was?)Anyway, I charge $95 and have coupons for $20 off (discount on total not hour) and less than half of my business so far has even had the coupons.

[reginanewsum]

Luck on my side I guess! I have not had a bounced check, knock on wood! But when I take a booking,  if it is at least two weeks before the gig, I tell them a check is ok, but if payment is at time of service, I only except cash! And wow people are crazy on the hourly rates! One phone conversation was, How Much do you charge? I say $100 per hour, with a min of a two hour party. She tells me she has about 90 kids attending! And goes on to tell me that my prices are way to high, but SHE WANTS ME THERE! I say $100.00 per hour with a min of 2 hours. And I would have to reduce the sizes of the designs, like masks and eye art and fast designs, no elaborate full face designs, and that I would not even bring those pictures out for the kids to view! She still says SHE WANTS ME THERE! Than she said "well can I just book you for one hour at $60.00 and can you just paint faster! Ahhhhhhh NO!  And ask me if I knew anyone that would paint for that? And I went on to tell her that I had friends all over the world that are professional face painters, and I would say that with your demands, no one would book your party! Some nerve of people! gheesh! Others that I go do there events are great tippers! Last night I did a birthday party for 20 9 and 10 year olds. Face painting and glitter tattos for everyone! Elaborate full face designs, it was so much fun! And when I left they paid me $200 and a $50 tip! I shook mom and dads hand, thanked them and they said no thank you! They were having a birthday party sleep over, and by me being there with the girls that gave them over two hours of rest! hahahahaha

[twinkletattoos]

We've only ever had one bounced check. We didn't realize it bounced until we got the notification in the mail from the bank that they were charging us $25.00. Luckily when we called the customer she apologized and we believe it was an honest mistake. We informed her that she would also be responsible for the fee and she was really cooperative. We asked her to send a Money Order for the payment instead.

Since that incident we always require a Credit Card for the deposit to protect ourselves and then we accept cash/check/credit on day of, but if the check bounces we at least have a CC on file.

[Sherry]

The credit card on file is a great idea.  I haven't had any other problems with customers bouncing checks, so I really didn't want to stop accepting them, the credit card is an idea I think I can work with.