Can I charge a customer for paying by cheque?

Discussion in 'Cashflow forum' started by andoclaire, Apr 11, 2019.

  1. andoclaire

    andoclaire UKBF Newcomer Free Member

    4 0
    Exactly as my thread title, I have three customers who insist on paying by cheque. It's clearly a delaying tactic, but as a company we're pretty cash strapped so I'm trying everything I can to increase my cashflow!

    Apart from all of the above, we are on an industrial estate so one of us has to pop into town every time and it's just a nuisance.

    What I'd like to be able to say to these three, is that from the 1st May we are going to charge a £15 admin fee for cheque payments.
     
    Posted: Apr 11, 2019 By: andoclaire Member since: Apr 11, 2019
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    17,634 2,005
    Could you refuse to accept payment by cheque from a future date?
     
    Posted: Apr 11, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. stuartm1962

    stuartm1962 UKBF Contributor Full Member

    62 11
    We had exactly the same, 3 people paying by cheque. we just advised them that due to the time involved in banking the cheques, that we are no longer accepting them.

    They all pay by BACS now.
     
    Posted: Apr 11, 2019 By: stuartm1962 Member since: Nov 15, 2012
    #3
  4. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,857 2,203
    Forget which bank, but one the other day hada option to scan a check and pay it in by email, think it could have been TSB or LLoyds

    Large companies accounting departments do tend to be the most reluctant to change, so they still think of checks as a new invention and they are ahead of the game, not centuries befhind
     
    Posted: Apr 11, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #4
  5. stuartm1962

    stuartm1962 UKBF Contributor Full Member

    62 11
    It has to be quicker to do a BACS payment than to write out a cheque, put it in an envelope, fill in the address, put a stamp on it or frank it and then post it surely?
     
    Posted: Apr 11, 2019 By: stuartm1962 Member since: Nov 15, 2012
    #5
  6. andoclaire

    andoclaire UKBF Newcomer Free Member

    4 0
    So it sounds like actually not taking cheques is the way to go, so we will. They're just too inconvenient for us.

    I had a meeting with our NWB relationship manager recently, and he said that they will be going this way eventually.

    I generally see it as a delaying tactic personally. Although one of my customers is very old school, so it may be this too.
     
    Posted: Apr 11, 2019 By: andoclaire Member since: Apr 11, 2019
    #6
  7. JG Devon

    JG Devon UKBF Newcomer Free Member

    9 1
    Yeah I've got a couple of older customers who like to post a cheque (one of them well ahead of due date, so not a delaying tactic). I pay it into the post office though, as my closest branch is miles away. Adds a day or two to clearance but saves the journey.
     
    Posted: Apr 11, 2019 By: JG Devon Member since: Mar 21, 2019
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

    17,634 2,005
    Yes, but the person signing the cheque probably isn't doing all that in a big company. That's what admin staff are for...
     
    Posted: Apr 11, 2019 By: Mr D Member since: Feb 12, 2017
    #8
  9. Mr D

    Mr D UKBF Legend Free Member

    17,634 2,005
    Nice to see the banks catching up with the 21st century almost a fifth of the way into it.
     
    Posted: Apr 11, 2019 By: Mr D Member since: Feb 12, 2017
    #9
  10. obscure

    obscure UKBF Ace Free Member

    3,052 736
    LOL - I think that was his way of not telling you that it is never gonna happen, cos it is never gonna happen. Cheques are dead and no bank is going to invest in new systems to handle them.

    Over 15 years ago I was the victim of cheque fraud (my new cheque book was stolen while in the mail to me and used to cash cheques for over the card guarantee limit, with no cheque guarantee card and with a signature that was clearly not mine). At that time my back had no department that dealt with cheque fraud. Credit card fraud yes, cheques, nope.
     
    Posted: Apr 12, 2019 By: obscure Member since: Jan 18, 2008
    #10
  11. DavidWH

    DavidWH UKBF Enthusiast Free Member

    1,478 273
    We bank with Santander, what I like there is I fill the paying in slip in, pop the cheque and slip in the their pre-paid envelope and drop it in the post box.

    1-2 days later it's showing in the bank.
     
    Posted: Apr 12, 2019 By: DavidWH Member since: Feb 15, 2011
    #11
  12. Scalloway

    Scalloway UKBF Legend Free Member

    15,390 3,258
    Google shows Lloyds, Halifax, Barclays, Clydesdale and HSBC allow you to do this.
     
    Posted: Apr 12, 2019 By: Scalloway Member since: Jun 6, 2010
    #12
  13. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,857 2,203
    Posted: Apr 12, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #13
  14. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    5,438 1,584
    You haven't tried everything as you haven't contacted me :D
     
    Posted: Apr 12, 2019 By: Ian J Member since: Nov 6, 2004
    #14
  15. Mark T Jones

    Mark T Jones UKBF Big Shot Full Member

    3,721 1,160
    All of the big banks have rolled out digital imaging in-branch for cheques over the last 2 years.

    Most are rolling out apps for cheque clearance - the sub-text being that they have (however reluctantly) decided that cheques are far from dead.

    A client of mines deals with a vey large Japanese client who insist on paying by cheque - if he told them he won't accept cheques it would be the end of his contract - you need to make a judgement on the worth of your client & the dynamic of your relationship.

    Direct answer to the question asked - yes, you are allowed to charge corporate clients for cheque payment, but should reflect this in your T & Cs
     
    Posted: Apr 12, 2019 By: Mark T Jones Member since: Nov 4, 2015
    #15
  16. nelioneil

    nelioneil UKBF Enthusiast Full Member

    621 87
    What happens if cheques ever get banned which has been talked about a few times. What will happen to that client?
     
    Posted: May 16, 2019 By: nelioneil Member since: Jan 22, 2013
    #16
  17. parkingandsecurity

    parkingandsecurity UKBF Regular Free Member

    187 25
    Posted: May 16, 2019 By: parkingandsecurity Member since: Sep 7, 2018
    #17
  18. billybob99

    billybob99 UKBF Regular Free Member

    1,278 311
    If they just add that £15 onto the total amount and pay by cheque I don't see how that is going to help you speed up your cash flow.
     
    Posted: May 16, 2019 By: billybob99 Member since: Apr 23, 2013
    #18
  19. parkingandsecurity

    parkingandsecurity UKBF Regular Free Member

    187 25
    I suspect its the deterrant factor.

    What they COULD lawfully do is charge late payment fees as the payment hasn't been recieved by the due date. If of course the cheque is sent in a week before the due date then this has no impact but keeps the cash flowing
     
    Posted: May 16, 2019 By: parkingandsecurity Member since: Sep 7, 2018
    #19
  20. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    5,438 1,584
    We rent a villa in Kefalonia in August and the owners ask for a damages deposit by cheque. When looking in my chequebook I see that the only cheques that I have written out in the last four years are for the uncashed damage deposits
     
    Posted: May 16, 2019 By: Ian J Member since: Nov 6, 2004
    #20