What to do when a payment bounces...

[mamaof4]

What is the proper course of action when a payment bounces- for insufficient funds?

[dodge__driver11]

I have a 2 strike policy for that.

By this I mean if you give me an NSF check 2x no more checks for you. Cash or money order only.

I also have the "offender" pay a 30.00 fee, as well as any charges incurred to me by the bank, and if it is after the first they must pay my daily late fee too, so bounced checks at my dayhome aren't a wise choice

[Crayola kiddies]

Stop taking cheques .... Tell them EMT only ( email money transfer ) when I took cheques it was 50$ plus bank charges plus late fees

[Inspired by Reggio]

If a cheque bounces my clients pay cash for that fees payment period ... my contract states that if a client makes a habit of NSF I reserve the right to terminate contract with cause and security deposit would be forfieted ...while the RARE banking mishap may occur I do not have issues with payment

[playfelt]

They pay any fees I incur because of the NSF and they pay cash or email transfer from then on till I reinstate cheque priveleges which usually doesn't happen because they get so used to the new method.

[Momof4]

My contract states there is a $50 fee for a bounced cheque. It only happened to me once and it was very stressful for me because I was worried that my rent cheque would have bounced but the family brought me the cash and $50 fee on the Monday morning after and I got it in the bank that evening. After 2 years I now take cheques from them again and don't have any any problems but that Mom knew I was so very angry that I don't think she would ever let that happen again.

[Cadillac]

Imagine how embarrassing that is for the parents. I've never had that happen. never even really thought of it before now. A couple things said on this forum has had me making notes for how to amend my contract next time I raise my rates.

[Spixie33]

It really is mortifying to the parents when they realize it. It happened to me once when I was using care because I had forgotten all about another payment coming out that same week and bounced. I went back to the provider with my tail between my legs and apologizing profusely.

From that point forward I was too embarrassed to write a cheque and used cash every week. It does happen by accident for some people. I would never have intentionally embarrassed myself like that

In my policy as a provider I write that the parents are responsible for any banking penalties and that they may be asked to pay cash from that point forward at my discretion.

It isn't an issue for me since all my parents prefer to pay cash anyways....saves me a trip to the bank

[Inspired by Reggio]

I agree accidentally bouncing a cheque is mortifying - and in those cases the clients usually come to you WAY before your bank notifies you of the returned cheque because they would be aware of it before you would ... I have only ever had one client who bounced cheque on me on two separate occasions over the course of 3 years here - and both times she came with the cash in hand including my NSF charge before I was even aware there was an issue the second time with a letter from her bank stating it was a 'bank error' that caused the issue and to please not look at this as a reflection of the client...think client was afraid I would terminate based on my 'repeated offenses will result in termination of contract'

When my red flag would go off is when the client does NOT come to you being mortified but instead just quietly waits for YOU to notice and broach the subject - because sadly there are people who consistently bounce cheques for various reasons not so 'accidental' but more because they are living beyond their means in one way or another ... and yet others who daycare hop leaving providers unpaid for services