Rubber Cheque Man

[edible_hat]

Now that this saga's finally over, I can tell it...

In Australia it's unusual for people to use cheques to pay for stuff at the retail level. My work doesn't allow personal cheques but we do accept business ones. Quite a few account holders pay by cheque as well as a few truck drivers, etc.

One now former customer (you'll see why later) paid by cheque. No problem, it he was running a business, the cheques cleared, all was good. Until he went through a patch where he got a lot less work than usual, so his cashflow was lower. He kept on writing cheques, and some bounced.

He saw the manager, paid the outstanding amounts and bounced cheque fees in cash, and all was good.

Two months later, more bouncing cheques. This time he got his mum to come and pay with her credit card.

Another month later, one more bouncing cheque. He sorted it out again but hasn't been seen since.

We're under orders to not accept any more cheques from him, and if he has a problem with it, refer him to the manager. (which is a pity because when his cheques cleared, he was a very good customer)

[Bright_Star]

Nowadays the only thing I write a check for is to pay my rent.

[rerant]

I don't understand why people use cheques. If the money is just being withdrawn from your account why not just pay with debit?
I see no justifiable reason whatsoever for using a cheque in a retail environment.

[KellyHabersham]

I wish the company which owns my apartment complex was that lenient - I bounched a rent check (wasn't on purpose) back in late 2006, and I've not been allowed to pay my rent by check since. And even though my mom's name is on the lease as a co-signer, her checks wouldn't be accepted either.

[ArcticChicken]

I don't understand why people use cheques. If the money is just being withdrawn from your account why not just pay with debit?
I see no justifiable reason whatsoever for using a cheque in a retail environment.

Supposedly some banks will charge a fee for using debit.

[zzapp the witch]

<cough> Cash.......less traceable.....

[edible_hat]

I'm thinking people do it for a sort of line of credit thing... write a cheque, you get the goods right away but they won't get the money until they get around to banking the cheque. So you get to keep the money for an extra day or two. Or maybe they write a cheque for an amount they know they can't cover, and then hope they can deposit the cash before the payee cashes the cheque. (which didn't quite work in the case of Rubber Cheque Man)

[Kali]

Seems to me like the guy is having serious cash flow issues, and he is using cheques because that way he can get stuff now and worry about the money later.

Shame that kind of management leads to giving yourself a bad name and no-one taking your cheques anymore.

[TealJellyfish]

It sucks when people/customers you like do things like that.

[Kiarna]

I'm thinking people do it for a sort of line of credit thing... write a cheque, you get the goods right away but they won't get the money until they get around to banking the cheque. So you get to keep the money for an extra day or two. Or maybe they write a cheque for an amount they know they can't cover, and then hope they can deposit the cash before the payee cashes the cheque. (which didn't quite work in the case of Rubber Cheque Man)

The only issue with that logic Edible is that you can do that with a Visa debit card as well.
I mean if I use my Visa debit to buy something in store, I can use credit and it will be withdrawn a few days later. Perhaps he didn't trust himself with a credit card! Or it could be he's paranoid about security and you can stop a cheque more easily than a direct credit card debt?

I dunno....though I should ask my mum she works in a financial institute!!

[Evil Queen]

My rent is paid in cash.

But I do use cheques to pay for my parking and to send money through the mail. (Say... to my grandmother who doesn't have an account with my bank, for example.)

[Kali]

The only issue with that logic Edible is that you can do that with a Visa debit card as well.
I mean if I use my Visa debit to buy something in store, I can use credit and it will be withdrawn a few days later. Perhaps he didn't trust himself with a credit card! Or it could be he's paranoid about security and you can stop a cheque more easily than a direct credit card debt?

I dunno....though I should ask my mum she works in a financial institute!!

That won't work. With visa debit, if you do not have the funds in the account, the transaction will be denied, even though the funds wouldn't come out straight away.

I strongly suspect that this guy knew he didnt have the funds in his account but hoped to get them there before the cheque cleared, but it didn't happen for him.

[Kyree]

I'm not sure about other places, but around here in MN, they do checks electronically. They make sure you have the funds right then, otherwise the check will be denied. And there's no bank around here that charges for using your check card.

[bainsidhe]

... write a cheque, you get the goods right away but they won't get the money until they get around to banking the cheque. So you get to keep the money for an extra day or two.

Well, that's how our store USED to be. Until we got eletronic checking, which now acts like debit and puts a "hold" on the money immediately. So now the money goes through extrememly quickly instead of giving a day or five grace period. Oh the legions of angry people who accused us of overdrawing their bank accounts and otherwise being horrible people because they wanted to "float" checks until payday. I know times are tough, but it isn't our fault you don't have money to cover your groceries. We've had this process for a good eight months now, so those angry people are few and far between. But it used to be very bad.

[Samaliel]

I strongly suspect that this guy knew he didnt have the funds in his account but hoped to get them there before the cheque cleared, but it didn't happen for him.

I've done that a few times, at the end/beginning of a month. My account was dry because I had indulged myself to one extra I shouldn't have, but my paycheck had been sent and was supposed to be processed within the next few days. By the time the check I just made was cashed, my paycheck would have been cashed into my account. I never, ever got a check bounce.

Then again, I highly doubt I could do that again nowadays (last time I used a check was years ago), and wouldn't do it if I didn't know for sure I'd get the money.