Do you accept checks? Why or why not?
What are the pros and cons of accepting checks as payment?

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I accept checks (and honestly prefer them) but do have it in my contract that if a check bounces the parent is required to pay all fees I get, and is charged a late fee until the money clears/cash is given. They are after that not able to write checks. I have never had to do this though, in the last 9 years.

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I do, and I have rules about returned check fees and after the second one it's cash only. I have never had an issue until this last summer. A DCM of two SA kids I took in, her check for the last week bounced. She ignored all my attempts to contact her and then finally flat out told me she didn't have the money and tough luck.

I learned I can not prosecute without her ss# or drivers license # so it's a good idea to make copies of the parents driver's license.

On a bright side, I kept taking her check to her bank until after a couple weeks and a few tries her account finally had funds.

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This is my policy as well, and in 3 years have not had a check bounce.

I stopped taking checks because it took me to long to get to the bank. I collect payments on Monday mornings, and with checks, I couldn't get them deposited for a few days or until my day off on Friday.

Now I take cash or electronic payments. Parents who do electronic payments have to submit the week before so that the money is in my account on Monday mornings.

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Cash or online payment in advance of services, only.

I limit my clients ability to affect my life outside of daycare hours.

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Yes and I have no problems with them expessilly since I can now deposit them with my phone. My biggest thing use to be having to go cash them.

I do have a stiff penalties if checks bounce. Parents have to pay $50 fee plus bank fees or any other late pant fees that happen cause of check. As well as owe the daily late payment fee from original payment day till payed up of $25 per day child would not be evened into care till payment is made. Also parent would now hzve to pay in cash. So far I've never had a problem probably cause it would most likly cost at least 150 to 200 by the time fees are added togter so no one has done it yet.

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I take checks and LOVE mobile phone deposit. Like others my contract spells out the fees parents have to pay for returned checks. If they bounce a check it goes to cash only.

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I prefer checks! Mobile depositing checks is super easy and I can literally do it within 5 minutes of them handing me the check, and it takes like 30 seconds to do.

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I take a two week deposit which is applied to the last two weeks of care. I take checks in 8 week post dated intervals. I also charge late fees and a surcharge for NSF checks. The two week deposit covers me if a check bounces and I am not compensated.

I used to prefer Etransfer but having to rely on parents can be annoying. With a check I already have it in hand and can deposit it electronically on my phone in my living room!

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Up until this year I accepted checks.
I used mobile banking and loved the ease of use and not having to actually drive to the bank.
However, as of late many of my daycare parents don't seem to know how to write legibly so the mobile deposit is either denied or accepted and then denied, causing me banking issues I'd rather not have to deal with. (One parent actually wrote me a check with 2010 on it....then wonders why I'm pissed the bank won't accept it. )

So at the start of this new year, I required all parents to pay via bank transfers. I will still accept a check but I charge a $10 fee for processing per check. Only one parent still insists on writing checks but she pays the fee so I have to allow it since I did make the concession. Until I have issues, I'll still take their checks and extra $ for doing so.

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How do you word it in your contract / handbook that payments need to be via bank transfer? Also what info do you give them to set that up? A copy of your deposit slip?

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I bank with Wellsfargo. They have what's called.. surepay! It's a bank transfer service. All you do is register and provide an email and phone number. It's simple to use and free of any fees. Most banks offer this service, but name it something different.

My parents all pay this way. I have them pay on Wednesday to assure the funds are transferred and available for me on Friday.

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I like checks because it leaves a paper trail. But yesterday I had a parent ask me to hold off cashing the check because of bank issues. -_- So now im thinking cash would have been better.

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Who told you that you needed a SS# or DL# to prosecute? Just wondering because it's not like that in my state. Here, we can just take the check to the State's Attorney's office and they prosecute for us.

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I tell the parent they need to contact their bank and find out what information is needed for them to pay via bank transfer.

Once they find out, they let me know and I provide the needed info. So far it's only been my full name, the name of my bank, my bank member # (NOT my account #) and my e-mail address assigned to my account. No one has asked for anything more than that.

The wording in my handbook says:

"ABC Child Care accepts payment in the form of a bank transfer or e-pay option. In some cases, families may pay via check. There is a $10 per check fee assessed to this form of payment."

The new wording I will use for any new families is the same but minus the check option.

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http://www.nodawaycountymo.us/files/..._merchants.pdf

UNDER MISSOURI LAW, WRITING A BAD CHECK IS NOT A CRIME UNTIL THE PERSON WHO WROTE
THE CHECK RECEIVES NOTICE AND THE CHECK IS NOT PAID WITHIN TEN (10) DAYS AFTER
RECEIPT OF THIS NOTICE.

In order for you to submit a check for prosecution for violation of criminal law and in order for our
office to assist you in that prosecution, the following must be true:
† The check was written or passed in Nodaway County (not received by mail);
† It is not a third party check;
† It has a face value of at least $10.00;
† It is a personalized (imprinted) check;
† You have the person’s date of birth and either the person’s social security number or driver’s
license number and the state in which the license was issued;
† Notice of the bad check was sent to the person who wrote the check;
† Ten (10) days have passed since the notice was signed for by the individual who wrote the check;
† The check has not been paid;
† It is not a post-dated check (dated after the date the check was delivered);
† It is not a check you were asked to “hold” until it was “good”.

Under Missouri law, we can not prosecute:
* postdated checks;
* checks that you agreed to hold;
* third-party checks;
* payroll checks;
* offenders who cannot be sufficiently identified in a court of law;
* checks stamped “refer to maker” or “uncollected funds”; or
* any check you take after being told when you accepted the check that is was not “good,” but would be “good” later.

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I never have because my bank used to be quite a drive (20 minutes).

I use Minute Menu Kids payment software (will soon have to switch to Kid Kare and I'm nervous). I'd prefer to get checks at this point since I wouldn't be charged $1.00 per payment made (which totals around $30 each month), but the downside is I couldn't issue a payment reminder and they couldn't pay me when I am closed. I don't want the extra stress of collecting checks. I'm a weenie who avoids extra work if possible.

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I have to say the part of not having to deal with checks and the reminder is a HUGE reason I like Brightwheel. Right now Brightwheel is free but based on another thread here I guess than will be changing soon, so I am exploring options.

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I very much like this, I will steal it if you don't mind.

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I prefer cash but take checks because my dc parents seem to prefer to use them. I have a policy in place that states parents pay any bank fees that result and will be charged a $25 inconvenience fee on top of the fees. I also state that if it becomes a problem, I will accept cash only. Other than one family that bounced checks 3 times, I haven't had many issues with it..

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Feel free! Any help I can provide is worthwhile for me!

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I had a parent that would write her 5's looking like 8's. I told her several times my bank would scan them as 8's. (even at the ATM) She didn't care, so I got an extra $3 per check :P
I actually like checks for this reason. Now, not every parent, but there have been few that I will do this for. I'm very specific to which parents I will allow to do this, but it has never been a problem and it assures me if they take off I still have the check and can deposit it.

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Here in Canada you just need an email address. The bank handles everything. Never give your banking info to anyone!

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I prefer checks.

I snap a picture and deposit. I'm only allowed 10 deposits per month though, so sometimes I use the atm when I'm already out grocery shopping etc.

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I except checks and have in my contract my policy for bounced checks.
Pros: creates a record, parents don't have to stop and get cash each week, convenience.
Cons: They can bounce.
I have had 2 incidents with checks: First one was a single mom bounced a check and knew it. She was at my door the next morning with cash in hand and paid the fees and whole balance owed.
The second one was: Years ago one of my clients called me asking if I had held his check for some reason. I said no. A short time later the check came back to me because the bank and transposed a couple of the routing numbers. They just paid me cash. I also fought for the bank to refund me the fee since it was there fault.
I know plenty of providers that except cash only. I like taking checks as long as the rules are clear about bounced ones.
Deb

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