Should I Accept Checks???

Accepting checks is something that many crafters are unsure about.  If you don’t accept them, you could lose some sales.  If you do accept them, you run the risk of the check bouncing.

The following are some things you can do to protect yourself:  First, avoid checks with just a PO Box address, Ask for identification such as a driver’s license to get an accurate address.  If the check has a street address on it, it is still a good idea to verify it by matching it with the address on the driver’s license.  Second, write the customer’s license # on the check and get a phone number (if the check does bounce, you need to know how to contact the person).

Some crafters only take local checks.  By doing this, you can take the check to the bank it is drawn on to cash it.  This protects you from getting a bounced check fee from your bank if the check is bad.  If you prefer to deposit the check directly into your own bank account, you can call the customer’s bank and ask if there are sufficient  funds available to cover the check.  This will let you know in advance if the check will clear.

By this point though, you’ve already given the person your merchandise and have only their bad check.  Most of the time, you can collect your money (even if it is not local).  Make sure you get the above information.  Keep it so you can contact the person.  Try calling them.  If he/she avoids your calls, try a letter.  If you still don’t get a response, try sending the letter certified.  By doing this, you are ensured that the person receives it.  Let them know that if they do not rectify the situation, you will go to the police and file a complaint against them for passing a bad check.  This will probably get a response, if not, go to the police.

When you try to collect your money, make sure to include all the additional costs you incurred such as bank fees, cost of postage and toll charges.

If you are still hesitant of accepting checks,  you can contact a check guarantee company.  Using them ensures that you get paid.  The disadvantages to check guarantee companies is that they may not stop you from getting charged by your bank for the bounced check that you deposited,  and the check guarantee companies charge you a fee for their services.

If you decide to take checks, make sure you post signs at your display that let people know you accept them.  Checks can boost sales.  It may be worth considering.