This is probably a question that has been asked a thousand times, but... do you hold checks?
I haven't been holding them (but I've only been accepting them for about a month or so) and I just got two bounced checks in the last 3 days. My items are all pretty low-ticket, so I'd think that just about anyone can clear a check for $10. But, both of the checks that bounced this week were for less than $10.
So, if you do hold checks, how long do you hold them for? Both of these took longer than 10 days to be turned back. And how do you know when a check has cleared? My bank adds them to my balance the very same day I deposit them (Washington Mutual, if it helps).
Errgh. I thought the most annoying thing about auctions was the deadbeat bidders, but now it's got to be the check bouncers.
posted on March 13, 2001 10:06:05 PM new
It's been reported on here that checks have bounced from as long as 30 days after deposit. So no guarantees as to a "safe" period.
It doesn't matter when your bank applies them to your account, it only matters when the issuing bank tries to apply it to the writer's account. Most banks will even try to put them through twice before they bounce them back.
If the bouncers don't make the check good, you can certainly leave negative feedback (if you haven't already left feedback).
Another option is using a collection agency such as www.madagency.com to help you get some of your funds back.
As someone pointed out in another thread, EVERY form of payment has a risk involved, even cash so there's just no guarantees regardless of what you accept.
posted on March 13, 2001 10:11:10 PM new
I hold all checks for 10 days. I know that isn't enough to ensure they won't bounce, but I think there's a subtle pressure on the customer, knowing the check will be held for even that length of time. I'm scrupulous about it unless I have a repeat customer I've come to trust. When those ten days are up, the item is mailed within 24 hours.
posted on March 13, 2001 10:54:42 PM new
I hold checks over $20, but not under. But now the original poster says both the checks that bounced were under $10. Geez.
I always figured that no one was stupid enough to pay a $20 bounce fee for a small check. Apparently I was wrong.
I've been very fortunate and only had once bounced check, which was due to the bidder's atm card being stolen, which resulted in the bidder closing his account. He emailed me and told me before my bank did, and sent more than enough to cover my fees (I had to send him a refund!).
It's a pain on small items, but you might call the bank the check is drawn on, and see if the balance is high enough to redeposit. If you're really nice to the person on the other end, they might even tell you if this person does it a lot, or if it was just a timing error on your customer's part. They're not supposed to of course, but humans are humans, and schmoozing can go a long way.
Also, this might be postal fraud or some such on the part of the buyer - a pretty big thing for a small item.
[ edited by sadie999 on Mar 13, 2001 10:56 PM ]
posted on March 14, 2001 05:59:07 AM new
I hold checks for business days. I will call the bank to verify funds if the bidder wants the item sooner. So far no bounced checks. I take it back, Once someone sent me a check on a closed account. It was a big ticket item and it was during the holidays so I called to verify funds. I didn't send the item and I never heard from the bidder again.
posted on March 14, 2001 06:48:26 AM new
I don't hold checks. It got too confusing for me to keep track of. I prefer to ship within a day or two of payment. It just keeps things more organized for me. I might hold on a high ticket item though, if it were enough to really hurt me if the check bounced. I also don't take personal checks from any buyers with feedback under 50. YES, I know some people have a problem with this practice. YES, I know we were all new once. Its just MY policy...
posted on March 14, 2001 07:06:45 AM new
I hold checks for 10 days. The bounced checks I've had in the past have taken that long to get back to me. It is worth it to me to hold delivery on items paid by check JUST IN CASE.
posted on March 14, 2001 07:08:05 AM new
With regards to bounced checks, I think it depends what you sell?
I've had one NSF check out of several hundred, and on the 1 bounced check the high bidder sent out an MO the same day I let her know what had happened.
I never hold checks, but do have a disclaimer in my auctions that I reserve the right to hold checks on users with low or negative feedback. I've accepted scores of checks for $100+ with no hold, several for $500+ with no hold, and some for close to $1,000.
If it's something I expect will break the $500 mark, I usually ask for payment in the form of a Postal MO.
posted on March 14, 2001 07:48:44 AM new
I used to hold checks, but it is a pain. I had my ready to mail stack of boxes, wait 3-days to mail boxes, etc. In addition, it was extra work for me as I notify all my customers when I receive payment and when I mail . I also found out with the one check I have gotten that bounced (knock on wood - only one) that it took over 30 days to be returned to me.
I still state in my auction description that I hold checks 5-7 days, but that gives me the prerogative to do it if I get that 'funny feeling' about a customer. Otherwise, I ship the next day. It has definitely simplified my life.
posted on March 14, 2001 08:17:20 AM new
No, but I sell low ticket items. I don't hold them in my retail store at all and many are from out of state. I have their name, address, phone number, bank name, and account number. There's also resources such as the local DA, Post Office and FBI for fraud, and whatever else is necessary. For $10 I probably wouldn't bother, but even if can't get restitution, I can certainly cause some aggravation. It is a crime (unless it's an honest error). And if someone is going to commit a crime it can be done through MO, Credit Card, and even cash.
I can't be bothered to change my positive outlook on people just because a miniscule number of them would benefit from a little chlorine in the gene pool.
edited for spelling
[ edited by anothertreasure on Mar 14, 2001 08:18 AM ]
posted on March 14, 2001 10:03:57 AM new
My TOS says that I "may" hold checks, but I never do. It's just too damned much trouble to keep track of, and I've never had one that has bounced in over 400 transactions.
HOWEVER...I think this varies tremendously according to what you sell. Computer stuff and kids' toys seem like hotbeds of bad check writers...along with some very popular collectibles like beanies and sports cards.
I sell antique silver and plate, and women's plus-size clothing for the most part. I also liquidated a huge collection of classical music and books over the past year. Most of these sales were under $50, and I've never had trouble with bad checks.
I really think this is a decision you have to make to suit your particular situation. If you sell "risky" items, you may want to not take personal checks at all and rely on PayPal or BidPoint or money orders. You can always try taking checks and see what happens, then change your rules to suit.
posted on March 14, 2001 10:22:03 AM new
When I was new and leary of this online stuff I did hold checks, but after a year and no problems what so ever, I quit. After 4 years and thousands of checks I have only had one bounce, and the buyer made good on it immediately. When I was holding it was very upsetting for high feedback buyers, and I sure understand that now. Everyone has to make that decision for themselves but for me personally it is so much easier. Just get the money and mail it out and its done.
gingersnapp
posted on March 14, 2001 10:42:40 AM new
I might hold a big dollar check, but I have only had one bad small check out of hundreds. I've said this before, holding a check adds no value whatsoever to the transaction process and only delays the shipment of merchandise. That's a losing proposition.
posted on March 14, 2001 10:53:06 AM new
I held checks for 10 days untill I quit taking them. I had one bounce for $400.00 27 days after I deposited it. This showed me there was no way to hold them long enough to make sure so either don't bother holding them or don't take them.
The guy that wrote the $400.00 check had a feedback of over 100 positives. He sent out over 20 bad checks that I know of. Everyone had sent him his merchandise.
What happens is his bank contacted him and he promised to bring in the money. That held up the check from bouncing.
I quit taking checks after that and never noticed any drop in business.
posted on March 14, 2001 11:21:51 AM new
My auctions say I "may" hold checks for 7-10 business days, but in reality, I actually hold very few of them. The only time I do is if it's a starter check, a check from a third party, someone with a previous record for writing bad checks, or if the check is over $50 or so.
I've had 5 bounced checks out of 3,000+ transactions, which I figure isn't bad at all. One was for $40, one was for $25, and the other three were $10 or less. All the people reimbursed me except one, who apparently fell off the planet or something (hers was a $10 check). I did have to send several reminders to another bidder, but she did eventually pay.
From what I've seen, feedback means very little as far as being able to "predict" if someone's check is good or not. Only one of my bad check writers was a newbie (the one who fell off the planet); the rest had 50+ feedback. And the girl who took her own sweet time about paying had 200+ feedback.
It usually takes a *good* 7-10 business days for my bank to return a check to me (and it can take up to 3-4 weeks), so holding the check for a shorter period of time doesn't make any difference.
posted on March 14, 2001 11:36:30 AM new
I don't hold checks & have never had a bad one, yet. I agree with danilynn it's too confusing. I admit that I did hold one that was for over 250.00. I had no idea how I was going to know if it cleared in 10 days.
The buyer emailed me after three weeks & said she had received the check in her statement & would I send her item. I was embarassed over this, but at least I knew the check was good. I don't usually sell high priced items. I did sell a ring for 299.00 a few weeks ago & in my TOS I did not mention checks, just a MO so I wouldn't have to worry.
posted on March 14, 2001 03:31:47 PM new
I usually hold checks from the time I leave for the bank till the point when the teller say if you want that deposited your going to have to let me have it.
posted on March 14, 2001 03:37:57 PM new
dman3: The question is - Do you ever get to see the CASH from those checks???
Out of everything I've heard, I think I like the idea of *saying* I'll hold the checks and then picking and choosing the ones I actually do hold (or call banks for). My luck, though, I'll ship immediately for the bad ones and hold the good ones for too long.
I'll save the collection agency for a bad PMS day. It's better than taking it out on the people immediately around me, right?
posted on March 14, 2001 05:29:38 PM new
yes I get the money from them checks
I would say 85% of the payments I get are check in two years I have had one returned check and I wrote the buyer and within three days they had sent me a money order for the bounced check and my fees.
Most people will not float or bounce check for small ammounts as there bank charges a lot for each bounce so inless you a $5 to $20 bounced check can cost the person wwho write it as much as $50 some time more in fees.
posted on March 14, 2001 05:39:01 PM new
I held checks for my first two years on eBay, but not any more. I've never had a bounced check. Too many people complained about the hold and it became quite confusing and cumbersome for me as a part-timer. However, as a buyer on eBay, I almost always pay by check and I've found that the vast majority of sellers hold for AT LEAST 10 days.
posted on March 14, 2001 08:53:55 PM new
Most people don't intentionally bounce the little checks. It's the rent/mortgage check that bounces and starts an avalanche of fees that does it. Banks process the largest checks first. So if the $600 rent check bounces they subtract the NSF Fee and move onto the $250 car payment check...oops not enough to cover that, deduct another $35.00 NSF fee, then go on to the $100 phone bill and so on and finally 4 or 5 little $10 checks end up bounced and the account has a negative $200 balance.
posted on March 14, 2001 09:40:35 PM new
Well, I sometimes put in my terms that "personal checks may require clearance time" just to cover myself on items that I expect to go high.
The truth is though, I seldom hold checks. I've only had one bounce in over two years and he made good on it ($47 amount).
posted on March 15, 2001 07:56:14 AM new
I cannot understand why folks who get bad checks feel they have no protection?
Simply put, if you get a bounced check, and the buyer won't make good on it - (1) write a letter to the fraud division of USPS. If you mailed item via USPS - it is mail fraud! The buyer gets a stern letter (masked as an information gathering letter) where they need to prove they paid etc. or (2) contact local Police Department and find out steps to press criminal charges against buyer. Send certified mail to buyer listing your activities that you've begun to recover your money. Chances are that a threat of either a summons from their local police or a federal prosecution for mail fraud - will be enough to make them fork over the money.
Bad checks are criminal activity - and you DO have protection. Those buyers (who never get merchandise they paid for) or sellers (who get bad checks) need to carry through with the work to get restitution - but it does happen.
posted on March 15, 2001 08:26:12 AM new
My policy has always been that I hold items for 10 business days after the check has been deposited, unless they are a prior customer with no bounced checks or have feedback over 100. However just last week a buyer (who also sells on Ebay) gave me a bad check and she has feedback over 300! She emailed me on 3/7 saying money order was being sent on 8/8. Here it is 3/15 and no money order. She will not answer her emails and when I pulled her contact information from Ebay the phone number listed with Ebay says it has been disconnected. Since she also has the merchandise it looks like I'm out the money AND the merchandise. I'll give her until Saturday and then I'm filing for my final value fees and reporting her to the postal service. Also hope she gets kicked off Ebay cause she's got a lot of auctions going right now.
One way to find out if a check has cleared is to make a copy of it for your records before you deposit it. You might also want to make it the only check in a wholly seperate deposit.
Since most checks have a phone number for the bank (or at least the name of the bank) on which they are drawn, you can then call that bank a few days later and see if the check has cleared your buyer's account.
If that's too much of a hassle, use the second idea, and call your bank. You need to find someone there who actually knows what they're doing. Ask for your balance, and your collected balance. If your balance and your collected balance differ by more than the check amount, it means that the funds aren't in your account yet.
posted on March 15, 2001 08:40:38 AM new
paintpower,
I just had a buyer suspended since she did not have updated contact info. Contact safeharbor. They will send a letter and give her 48 hours to update it. Pull the info in another 48 hours and if she still has not updated it, contact safeharbor again and they will suspend her.
posted on March 15, 2001 04:21:28 PM new
Like many others that responded, I don't hold checks, either. In the close to 3 years I have been selling, and around 1000 transactions, I have yet to have a check bounce. (Knock on wood!!)
The reasons I don't hold them have already been mentioned by others, but there is another reason as well. In my EOA notices, I tell my customers that I won't make them wait, that I trust them. I think that sets a good mood for the transaction. Just like the advice given in another thread (where a buyer was irked by a sellers threat of NPB alert in their EOA notice), this is generally your first contact with the bidder. Why not assume they are going to be trustworthy, because most bidders are. Just wanted to add my 2 cents!!!
