Surcharge for cheque payment?

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greenbarn
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Surcharge for cheque payment?

Post by greenbarn »

This is really just one of those Sunday morning rants kicked off by seeing a cheque sitting on my desk that arrived yesterday for a payment due last Wednesday and which I might get to bank tomorrow.

I know there was a thread/poll a while back about taking cheques here
but this is a slightly different thought.

We're based in the UK, the majority of our guests come from within the UK. For payment we offer bank transfer, credit card, debit card, or - with reluctance - cheque. We don't make any surcharge for card payments, and you'd think that guests would choose to pay at least the deposit by credit card because of the security it gives them. Just to add to the security point, we don't take card payments by phone so the guest doesn't have that security concern either.

As a booking doesn't move from provisional to confirmed until I have payment, and only remains as provisional for 48 hours, if people want to send a cheque I ask them to do it pronto and first class post so it gets here quickly. They don't of course and I have to extend the deadline.

As far as I'm concerned cheques are a PITA; they involve having to make sure they're correctly made out, making a trip of several miles to the bank, filling in slips, plus charges. All a totally unnecessary waste of time and money.

I really don't want people to send cheques.

So, rather than putting something on the payment instructions along the lines of "Unless you live in the Dark Ages please don't send us a cheque payment", and accepting there are a few people out there who do live in the Dark Ages but might still want to book so we can't refuse cheques point blank, how do I dissuade people further from sending these paper relics?

They cost me time and money = money (I think I mentioned that already) so how do you think people would react if I stuck £5 on as a processing fee for a cheque payment? Would this dissuade people from sending them, or would they simply ignore it, not add the £5 and send a cheque at their leisurely pace by carrier pigeon? Or even pay the £5 fine?
Or - and herein lies the problem - take offence and give their money to somebody else (albeit by cheque......)?
How would you feel? :?
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roxytoo
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Post by roxytoo »

I have the same scenario, cheque arrived yesterday, bank was closed, I can't get to bank until Tuesday. Offer paypal, bank transfer, no they can't do that. Final payment is due in 10 days, why they couldn't pay the whole amount I don't know, will have to go through it all again!

Sorry Greenbarn, I don't have an answer
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edinburgh
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Post by edinburgh »

I run an online business aimed at 18-30 year olds. Occasionally we receive cheques (or postal order!), usually from people in their 40's or older.

I just accept them and swallow the charge. Sometimes the cheque is for as little as £5 (one month's membership). I just bank the thing and thank them for their custom.

It's so infrequent that I couldn't care less. If it was happening for maybe 10% of payments I'd be imposing a surcharge, but for maybe a few a year - meh, who cares.

If it's just one or two a year, I'd just accept them and be done with it. Perhaps with one caveat:

If someone wants to pay by cheque, I would set the due dates two weeks earlier than for other methods.
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French Cricket
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Post by French Cricket »

No answer either, GB, but the same grouse.

I have a deposit cheque sitting on my desk that arrived over two weeks ago - a French cheque sent from the UK! - that won't be paid in until I can get to the town where my branch is during working hours. That's a round trip of 30km, in hours when I'm supposed to be working ... it really doesn't make sense :?
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edinburgh
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Post by edinburgh »

French Cricket wrote:That's a round trip of 30km, in hours when I'm supposed to be working ... it really doesn't make sense :?
Can't you just post it to them?
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French Cricket
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Post by French Cricket »

No.

This is France :lol:
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edinburgh
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Post by edinburgh »

French Cricket wrote:No.

This is France :lol:
Oh gosh :P

Seriously though, what would the bank actually do if you posted the cheque to them? Would they return it?

The local branch of RBS insist that any volume of cash be counted into bags. I'd normally do this, but one time I was just in a rush, so walked in, gave them my details, gave them the bags, listened for 2 seconds as the teller bitched, and walked out. The money was in my account when I logged in that evening.

... or would the French just not "get on with it"
Bunny
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Post by Bunny »

I do take cheques and get a high percentage pay this way, but agree they are a PITA. I have been known to take 2 weeks to bank them as it involves a special trip to another town having had my local branch close. I don't feel I can refuse them because I still have not got around to sorting out card payments. A £5 charge may work because I had a guest baulking at paying a £3.70 Paypal charge the other day. On the other hand I'm surprised at the amount of younger people who are still living in the dark ages and don't have the ability to do an online transfer. Older people just don't get it and I think a charge for accepting cheques may put them off booking. I think only time will resolve the problem......i.e. when the die hard cheque guests become extinct and not the cheques themselves.
FelicityA
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Post by FelicityA »

I still offer this as a payment method although of course we also have to get into the car (albeit only a 9 mile round trip) or post it to bank it. I wouldn't like to add a surcharge.

There are still people out there who think they are giving away their bank details (which of course are on their cheque :roll: ) by making electronic transfers. There are those who don't use PayPal and there are those who have absolutely no intention of ever putting any financial details online so they won't use payment services provided by listing sites etc.

The people who write cheques may well be the type you like to have in your property (of the mature type). I would just continue to accept, graciously, and say nothing. PS I do have a 2 calendar month balance payment deadline and I say to allow 5 days for clearance on top of that.
Hells Bells
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Post by Hells Bells »

I have posted cheques to my French bank before to be paid in, both Credit Agricole and Barclays France. I recently found a paying in slip that could be posted for someone with an AXA account too.
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kevsboredagain
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Post by kevsboredagain »

You could move to Germany or Switzerland or just simply take deep breaths :lol:

Some people don't like change or don't trust doing financial things online. You just have to accept it.

I find having a big pay now button for the deposit really helps. "Pay now to secure your booking" makes them think twice before sending a cheque for the deposit. I receive maybe 1 per season for the deposit. I don't mind for the rental as I simply mail it to the bank.
kg1
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Post by kg1 »

We quite often get cheques - but theses are usually from older folks who don't do online bnking & are fairly swift in paying.

Banking is no problem - we have a Santander bank account for the business which we can operate through the local Post Office. We just put the cheques in one of their (free) envelopes & hand it in at the counter. You get a receipt & it goes straight off to the bank.
other
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Post by other »

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Last edited by other on Wed Apr 22, 2015 10:34 am, edited 1 time in total.
GillianF
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Post by GillianF »

What 'charges' do you incur for paying in a cheque at your bank?

We're in France and most/all our clients are UK based and most make their deposit and full payment by cheque posted to me here. Rarely, do we use bank transfers.

I fill in a paying in slip and send it with the cheque to my UK bank. Rarely a problem.

Personally, I would not want to pay a fee for paying you by cheque and would go elsewhere. Sorry!

If you really don't want payment by cheque then just say so. Lots of businesses here (France) don't accept cheques.

I would add that I know lots of more mature friends and family who would not ever, ever dream of paying for anything online to anyone, anywhere.
Marks
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Post by Marks »

Withdrew taking cheques a few months ago. I simply offer bank transfer or PayPal (guest pays fees). I have even emailed two guests who paid a deposit last year by cheque that their balance will have to be some way other than a cheque.

The simple answer is, don't offer it as an option. If someone offers to pay by cheque and you feel you must take payment from them that way, tell them to pay it in to your account at their local branch of your bank.
Some guests just need a sympathetic pat. On the head. With a hammer.
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