If your customer admits the check isn’t going to clear, even if you deposit it a second time, tell them to send a cashier's check or drop off cash. They can contact an overnight courier (such as UPS or FedEx) and instruct it to pick up the cash or cashier’s check at the appointed time. When you employ a courier, a cashier’s check is preferable to cash.
Don’t forget to tell your staff about the change in the customer’s credit status: anybody who interacts with the offending customer, both at the sales desk and in the credit department, must know that the customer is on cash or its equivalent only.
When a customer makes good on a bad check, you may choose to be forgiving, but only the first time. A repeat offender should be notified that their checks will no longer be accepted. Restrict repeat offenders to cash, money orders, or cashier’s checks.
Customer refusing to pay? Get help from a Michigan collection service!
If you’re fed up with a customer refusing to pay, the Mullers can help. Our collection services are based in Michigan, but we can help you no matter where you are in the U.S. We can even help internationally! For more information, call (248) 645-2440 or submit a contact form here.