Yes, We Accept Checks. No, You Can't Send It By Fax

[Dips]

Another post reminded me of this gem of a customer from a few years back. Now the caller wasn't nasty or anything but she worked for a sucky company as you'll see.

We automatically extend Net 30 terms to schools, colleges and universities and government agencies. However we do not do that for private entities, including private contractors working on behalf of the government.

One such called us wanting to purchase software and asked the price. The org name sounded government agency-ish, but not quite. So I googled it while we were talking and found it was a private entity. In our experience these privatized organizations can be very poorly run by people who can't budget for shit. Most are not like that of course, but the exceptions have been noticeable enough that we're cautious giving them credit.

So I mentioned our terms were prepaid and told her what cards we accept. And told her our fax number so she could fax a PO with the credit card number or she could order by phone if she wished.

The caller, who was a nice lady, asked if we took checks. I told her we did and started to give her our address so she could mail it.

Nope. She wanted to fax it so we could ship right away then she'd mail it so we'd get paid.

I told her we'd ship the merchandise when we had the check in hand, but we couldn't accept a faxed check.

Well, you see, that wasn't going to work. The needed the software urgently and were willing to pay lots extra for overnight shipping.

In that case, I explained, only a credit card would do.

They didn't have credit cards.

OK. They could wire the fund to us electronically.

Nope. They weren't set up to do that.

At this point their eagerness to get us to ship without being paid had already raised red flags. The fact that they wanted the merchandise overnighted before paying us was another one. After all, if they're not planning to pay at all, the extra shipping cost wasn't coming out of *their* pocket, right?

Nevertheless we do try to avoid telling customers we suspect them of trying to scam, even if we are 99% sure they are.

So I sympathized with the fact that they needed the software so urgently and yet no means to pay for it urgently. Unfortunately we simply couldn't ship until we were paid.

What to do?

Being ever helpful, I suggested that perhaps, since it was so urgently needed, maybe she or one one of the owners of the organization put the order on their personal credit card and get re-imbursed later. That way we overnight it right away.

The woman actually laughed. I guess she honestly couldn't help herself. She said if she did that she'd never see her money again.

She knew she'd slipped up. So when I said that I was terribly sorry but we'd only be able to fill the order after we'd been paid, she didn't argue the point.

[PepperElf]

She said if she did that she'd never see her money again.

well that part is kinda true for some organizations. seriously, it's why they told us to never spend our own money on things for work, because getting reimbursed would be hell.

however... i do think it's kinda fishy that they didn't have a company credit card.

now granted i've seen faxed checks work but... if they were *SO* eager to get the program they could have overnighted you the check too.

So yeah I think they were either suffering from piss-poor management (always a possibility) or running a scam.

[Raveni]

The HOAs and condo associations that I manage are considered private entities. And it would be a very bad idea to give someone a credit or debit card in the association's name. More than one association has lost all their reserve funding to an indian reservation casino that accepts credit cards at their machines. On top of that, it can be hard to write a check to pay for something on short notice because of the financial controls in place to safeguard everyone's money.

I authorize the check, accounting prints it, two boad members sign it, I mail it off. Not something that can be done in a day, usually.

Of course, if it's really urgent (and not too expensive), I'll just put it on my business card, and bill the association.

[MoonCat]

Years ago we used to accept a faxed check as proof that a check had actually been cut. The check then had to be overnighted, but meanwhile the ad could start running the next day. If the check didn't show up, we could stop the rest of the ad run. Now we only take credit cards or the actual check (or cash if they want to come down with the money!)

[EricKei]

The woman actually laughed. I guess she honestly couldn't help herself. She said if she did that she'd never see her money again.

"Well, now you know how we feel, Madam "

=========================

My old job took checks-by-fax, but we had a special program set up for doing so (and we still required the real check ASAP) that allowed us to direct-debit the sender's bank account; we only shipped if that EFT went through.

[DarkWarior]

I authorize the check, accounting prints it, two boad members sign it, I mail it off. Not something that can be done in a day, usually.

I learned from a friend that was trying to turn a company around after someone had run off with the checkbook. Despite the check having 2 lines for 2 signatures, the bank only requires one signature that is authorized on it.

[Raveni]

In reality, the bank won't even check to make sure that the signature matches their signature card either. But if you require two signatures, there is only one present, it isn't from an authorized signer, and its reported quickly, you can usually get restitution from the bank by reporting it as fraud.

I shred any checkbooks the bank sends me, and print checks already filled out with special software and a printer loaded with MICR ink.

[depechemodefan]

Wow, that reminds me of something that happened last Fri. We looked up an obit for a law firm. We send them an email saying we found it, it will be $3. Woman replies that she needs it right now. She told the manager that she will scan a copy of the check to us and then mail it, so manager told me to go ahead and send the copy of the obit.

I'm not expecting any check to arrive. I can imagine she meant to mail it, but darn it, she got busy and she had no idea where it went to.

Another time a stupid non-profit wanted us to send an obit with an invoice since the guy who called said he had to show an invoice before he can pay. Idiot manager sent the obit with the invoice and we never got paid.

[Racket_Man]

Dang it Dips thanks for giving my SCs an idea to try. but then we no longer actually accept checks anyway

"I will gladly pay you Tuesday for a Hamburger today"

[TheSHAD0W]

There's this newfangled service out there called Fedex. It's amazing, they can take a check and send it across the country overnight!

[Dips]

"Well, now you know how we feel, Madam "

I know! If they don't pay money owed to their own employees, then why would a vendor like us expect to be treated any differently?

I just hope the poor lady has found a better job since then.

[Jester]

Not every business that doesn't use credit cards is shady.

I don't believe The Bar has any such business cards (except perhaps in the hands of the Owner or Managing Partner, who are not there day to day), but we do just fine and are not shady. We either have accounts with other companies (like, say, liquor companies, that we just sign for stuff), or we write them checks upon delivery (like the beer vendors that deliver to us).

Of course, these are all companies we have longtime agreements with, and we are not calling them out of the blue asking for a huge order with merely the promise of payment....

[Geek King]

I would point out that faxing a copy of the check can be legitimate. If you are set up for one of those instant verification of funds checking systems, all you really need is the routing numbers off of the check to submit it for payment, and it doesn't take much longer than a C.C. or debit. The fax then goes into your files as proof of presentation.

But it is always up to the vendor as to what forms of payment they are willing to work with.

[Shalom]

Hey, could be worse. They could have offered to fax you cash.

[KiaKat]

We're allowed to fax proof of a written/sent cheque in order to avoid being reported to the state for delinquency. However, it is not the cheque itself that is faxed, but merely the stub showing all the relevant info. And it is only accepted as a delay of reporting, to allow time for the real cheque to land in their A/R department.