unfortunately, i have been getting a lot of returned and corrected checks lately, which has caused me an insane amount of bank fees. i have to institute a policy about this to cover the fees i get charged by my bank. i hate doing this, but any improper checks will be charged a $25 fee.

here are a few things that cause checks to be returned or corrected:
1. insufficient funds, basically bouncing a check.
2. "stale dated" is when the check date is too far in the past (like writing 2010 instead of 2011). this causes the check to get returned.
3. amount on text line doesn't make sense. for example, you write, "sixty three fifty and 00/100" when you mean $63.50. this is a bad check and gets returned.
4. text line amount does not match amount in number box. for example, $60.08 needs to be written "sixty and 08/100". for some reason i see A LOT of checks that say "sixty and 00/100" even though the amount has some pennies to it. the bank legally goes by the text line, so not only do i get shorted the pennies, but it causes a correction fee on my end as well.

thanks for understanding!

_________________
--rebecca
mama to zoe, esmee, paz & ina

Also please fill out all checks in blue or black ink. Red, purple, etc. will also get returned. I'm the treasurer for our preschool and we have a lot of trouble with that.

_________________
Rebecca D.
Wife to my best friend Michael
Mommy to Allysaurus and The Bean

yeah, no pencil either!

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--rebecca
mama to zoe, esmee, paz & ina

so.... in light of 2 recent fraudulent checks, i have to stop accepting checks. it sucks that a few rotten apples ruin it for everyone, but i don't know what else to do. i'd rather have checks than c/c because of processing fees, but bad checks cost a lot of $$$. please consider paying by cash to help save us costly c/c fees.
thanks so much!

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--rebecca
mama to zoe, esmee, paz & ina

Really, this is bigger than a couple bad checks and it makes me sad. For me, it undermines what you are creating. You created a system that replaced profit margins with handshake agreements and trust. When the agreement isn't honored, it is inevitable that margins must increase. A club/store that has such a slim margin cannot absorb fraud. Right now, credit card fees aren't built in to the margin. The effect of using credit cards will eventually ripple through prices. Prices will have to go up if everyone starts using credit cards that charge 2-3%. If everyone starts paying cash, the checkout system will have to evolve to support cash and change making.

It makes me curious about how fraud/theft happens. Did it happen when we were smaller? When we were in your driveway? What happens that makes someone think it's okay to steal from the market?

Buying clubs only work on handshake agreements between ethical, moral members who honor their commitment and take responsibility for their errors. Are we too big? Too impersonal that theft can be justified by dehumanizing?

How to create a system that can't get taken down by dishonest people?

Could we maintain credit balances on our accounts to allow check writing? For example, members who have a $100 balance get the benefit of writing checks? Other ideas for protecting against bad checks?

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Mama of Jasper (July 2003) and Meade (Feb 2007)
lorieclements.pdx@gmail.com

If you had an ATM on site, I'd always pay cash.

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Heather
Wife to S, mama to E (5/2009)

thanks for this, lorie. i agree 100%. requiring members to maintain a positive account balance at all times is a great idea!

i was actually thinking that once people invest and become co-op members, that $150 would be a security of sorts, and internal account against which debits would be settled before the equity was paid back in the future if the member left the co-op. this is actually standard practice for co-ops.

i am hopeful the last bad check was an honest mistake. fingers crossed. but i did have one over $400 bad check that i had to submit to the DA. i did get the money back, but it took months and lots of my time.

i am still willing to accept checks from people i know personally, but the entire staff can't be expected to know who those people are....... not sure how to have a simple policy that protects us and doesn't cost us a ton of money?

should we become a cash only business?

heather-- a 3rd party ATM on site is possible, but it'd probably cost $2-3 to use it, which i don't like either.

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--rebecca
mama to zoe, esmee, paz & ina

Right. But that's better than you paying cc fees.

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Heather
Wife to S, mama to E (5/2009)

someone asked about special PGP member buys.
i will still accept checks for these PGP only buys since PGP members are trusted.

also, we are still figuring out a check policy with allie and the WH staff since we do have many wonderful trusted members.

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--rebecca
mama to zoe, esmee, paz & ina