NSF cheque

So I just got off the phone with one of my clients. My bank mailed me a declined cheque. My client was unimpressed with the added charge that I have applied to their fees for the NSF. What do you ladies charge just out of curiosity?

I charge whatever fees are charged back to me. I will not absorb any of the charges. I will only tolerate it once by the way then I am paid cash only. Good luck

My contract states $50 and that no further cheques will be accepted. It doesn't actually cost anything for me at my bank, except that my rent may bounce, etc, so my charge is for stress! It is also meant to show families that I am serious about being paid on time.

I've only had it happen once and I considered the extra $50 income so I included it on the weekly receipt for childcare costs to be fair.

My charge is $30. I'll also include it in the receipt. This is the first time this has happened, but I'm applying the charge for two reasons. 1) It's stated in my contract 2) I also want to let this family know that I am serious. My life is far too busy and hectic to have added stress.

This is my NSF Policy:
All checks returned NSF will be charged an additional $25.00, any applicable bank fees and late payment fees until payment is received.
After 2 NSF checks, method of payment MUST be cash.

A $35.00 fee is due with the cash payment. Once a client bounces a cheque they are not aloud to use a cheque to pay again. Money transfer or cash only.

I've never had a cheque bounce... (knock on wood)

But I do remember bouncing cheques when my kids were in daycares. I always caught it before the provider even did and showed up that day with cash and offering to pay any additional fees. None of my past providers every charged me anything extra. Maybe because I was so efficient with paying.

This is what my contract says:

NSF CHEQUES: Parents will be notified of any cheque returned NSF. The late fee will apply from the date the cheque was not able to be posted to my account until all the fees owing are paid in cash. Parents will also be responsible for paying any fees I incur as a result of the NSF cheque. Following an NSF incident, payments must be made on time and by cash until I reinstate cheque privileges.

Basically in the past parents have written me a cheque knowing full well it would bounce but figured they had about 10 days before the bank would process it and return the cheque. What my method means is that the NSF cheque is equivalent to not getting paid so they are charged late fees from the date the payment was due to to the day they bring the required daycare charges plus late fees. The late fee is $5 a day including weekends and holidays. So for the 10 days they are $50 already before it takes them a day or two to get the money. Failure to have their fees up to date by the weekend would mean in arrears and there would be no daycare Monday morning without cash in hand.

$30 plus any additional charges I incur from bank as a result. Ive never had to charge anyone, but I wouldn't hesitate especially if they didn't give me a heads up first either

The advantage of leaving it open ended in your contract saying "responsible for any fees I incur as a result of an NSF cheque" means that if you have a payment bounce and are charged a penalty because you thought you had enough money in your account to cover the fee then the parents are responsible for paying your penalty since it is their NSF fault not yours.

Something to remember when making a contract - it is good to be specific so there are no misunderstandings but don't make the wording so rigid that it doesn't cover all possible scenerios.

I have it in my contract that they will pay a $50 NSF fee, and pay cash or by electronic transfer after that. I also included that income in my receipt, and counted what my bank charged me as a bank expense.

I had a client who bounced a cheque and my institution did not charge me. In the past payments were remitted to me via intranet email transfer, loved it, would receive their email and the money would be deposited in my account. My finanial institution does not have this service, I'm condering changing iinstitution. Beats having to go to the bank.

This happened to me (parent not daycare provider) for the first time ever a few months back. The parent always knows first. It was just a matter of forgetting to transfer money into our joint (bills) account in time (I have since set up a recurring monthly reminder). I was so embarrassed I called my provider and said I would bring the cash with me after work, plus any fees and an extra $10 "idiot" fee. She said it was no big deal, her bank doesn't charge her for NSF but I insisted. I was also charged $90 by my bank ($45 x 2 as my car insurance payment also came out that same day so I didn't catch it on time) plus my insurance company charged me a $40 re-processing fee. It was an expensive lesson. Just thought I would share an example from the parent side.

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Originally Posted by happymomma

This happened to me (parent not daycare provider) for the first time ever a few months back. The parent always knows first. It was just a matter of forgetting to transfer money into our joint (bills) account in time (I have since set up a recurring monthly reminder). I was so embarrassed I called my provider and said I would bring the cash with me after work, plus any fees and an extra $10 "idiot" fee. She said it was no big deal, her bank doesn't charge her for NSF but I insisted. I was also charged $90 by my bank ($45 x 2 as my car insurance payment also came out that same day so I didn't catch it on time) plus my insurance company changed me a $40 re-processing fee. It was an expensive lesson. Just thought I would share an example from the parent side.

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This is exactly why my contract say responsible for any fees I incur as a result of the NSF cheque - so the parent would also be paying what I was charged for not having the money in my account like I thought I did. That can start to add up quickly.

If it was ONLY this I would be much less irritated. But it's been late payments.... coming to my house past payment deadline and interrupting dinners and company. Cancelling days at the last minute, late pick ups, drop offs almost an hour late... etc... etc. I believe that I am done with this family. Even my husband is asking me to terminate because he can see how stressed out I am when I deal with them.

JennJubie the NSF cheque would be the last straw for me too on this family. There is no excuse for any of the issues other than selfishness and that is something I can't tolerate in an adult.

You SHOULD charge for NSF fees on bounced cheques. First off, by the time you know the cheque is bad you have likely already offered nearly a week of care for NO payment. That means payment is technically late by 4, 5, 6 days. Second, anything YOU might have had coming out of the bank is subject to bounce if the cheque affected your balance. Third, it's a hassle to go out and visit the bank AGAIN to deposit the new cheque.

You are a business. EVERY minute you have to devote to additional business time should be paid for. If I have to make a special trip to go and deposit a replacement cheque that is 20 minutes of my time over and above daycare hours. I should be compensated for that time AND the fact that I was not paid on time.

I made them pay the fee. I had their son the day after I received the NSF cheque in the mail. I told them that I required my fees, plus the NSF charge in cash before I would accept their son into care again. I do no favors - no payment, no care.

If there's anything positive that has come from dealing with this family it's that I now know I have no problem putting my foot down and enforcing my own policies.

I don't accept cheques for this reason but when I used to my contract said $50 plus any bank fees and then you go to cash only .... No second chances