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04-03-2006, 01:54 PM #1Web Hosting Master
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Why or Why not accept Money Order/Check payments?
Hi,
I'd like to find out why some companies accept and some don't accept money order/check payments.
I talked to a few friends and they said that it's not "safe" to accept money order/check payments because the user was not able to get a paypal account or a credit card, it doesn't feel right.
But I think Money Order/Check payments are safer once cleared, less chances of fraud, and no chances of chargeback etc.
What is your take on this?
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04-03-2006, 02:00 PM #2Web Hosting Master
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Money Orders and checks are a heck of a lot safer from a merchant's standpoint! A money order is essentially cash, so it is very safe. A check, once it has cleared, is also safe. There are no chargebacks on these items, and it doesn't cost a fee for the transaction (your bank may have some fees based on the number of deposits though). I take checks from my local clients, it's always nice.
Why would you friend think it is not safe?
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04-03-2006, 02:21 PM #3Web Hosting Master
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Hi Ariel74,
A friend of mine said that "If the customer cannot obtain a paypal account or a credit card, how can (s)he be trusted?".
But I told him that it's very safe, and I think it would save money.
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04-03-2006, 02:38 PM #4Junior Guru Wannabe
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I take checks from my local clients, it's always nice.
The problem is that checks being sent through the mail have a disturbingly high rate of not reaching their destination. This can cause a lot of problems and even more headaches to the host.
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04-03-2006, 04:00 PM #5Backup Guru
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Originally Posted by WN-AliScott Burns, President
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04-03-2006, 06:14 PM #6Junior Guru Wannabe
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Quote:
Originally Posted by WN-Ali
A friend of mine said that "If the customer cannot obtain a paypal account or a credit card, how can (s)he be trusted?"
That's rediculous. Most consumers have never heard of Paypal, and some people prefer to pay with cash and checks than with a credit card.
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04-03-2006, 06:18 PM #7Everything in life is swelly
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The problem with checks is that if you are not getting a tremendous amount of checks that come in and/or money orders, you are basically wasting a trip to the bank. This is why most providers who except checks/money orders will request the package be paid in full, if it is a budget plan. However if the plan is a higher pricing package, then yes seems harmless.
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04-03-2006, 06:27 PM #8Web Hosting Master
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Cheques can bounce so it's very important to wait 10 days after the cheque has been deposited to make sure it clears the bank alright.
I've had a cheque that I accepted bounce on me and for whatever reason my bank decided to charge a $5.00 fee to my account for accepting the cheque. I'm not sure how regularly that is done. Just to note I deposited the cheque I didn't write the cheque.
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04-03-2006, 06:47 PM #9Junior Guru Wannabe
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This is why most providers who except checks/money orders will request the package be paid in full, if it is a budget plan
I've had a cheque that I accepted bounce on me and for whatever reason my bank decided to charge a $5.00 fee to my account for accepting the cheque. I'm not sure how regularly that is done. Just to note I deposited the cheque I didn't write the cheque.
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04-03-2006, 08:16 PM #10Web Hosting Master
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You SHOULD accept any possible ways for money from customers including Money Orders, Check by Mail, Wire Transfers and Western Union.
Company's who don't do that - sometimes loosing as much as 10-15% of possible earning. Plus - this type of payments is much more secured - no chargebacks and no spammers/fraudsters.
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04-03-2006, 09:18 PM #11Company's who don't do that - sometimes loosing as much as 10-15% of possible earning.Your one stop shop for decentralization
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04-03-2006, 09:53 PM #12WHT Addict
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A lot of businesses and organizations only want to pay by check/money order so it makes sense to offer it, especially since you don't lose on transaction fees.
It can be a pain though as most of my clients who pay by check are typically late, so you may want to make customers who pay in this manner pre-pay for a year to save the hassle.
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04-03-2006, 09:59 PM #13Retired Moderator
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I agree with the others. What could the risk in taking it be?
-Jim
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04-03-2006, 10:22 PM #14Web Hosting Master
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Originally Posted by Jimerson
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04-03-2006, 10:52 PM #15WHT Addict
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Originally Posted by steven-v
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04-03-2006, 10:55 PM #16Web Hosting Master
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Originally Posted by LukeKrogh
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04-04-2006, 12:14 AM #17Retired Moderator
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Take payment for yearly only if you want. And charge them for the fee's. Or do not take them at all
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04-04-2006, 06:05 AM #18Web Hosting Master
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Originally Posted by WN-Ali
Now if you're focusing on personal clients, as mentioned by others, I would not assume that just because they want to pay by check (or money order) that it is because they "can't" obtain a credit card or Paypal account; many people simply are not comfortable giving credit card info out on the Internet.
I guess in the end, it's up to you to decide what payment types work best and what, if any, restrictions you will put on particular payment types. I've tried to keep it as easy as possible for people to pay the way they want, because I don't want to miss any business.
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04-04-2006, 01:07 PM #19Junior Guru Wannabe
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The check is in the mail, honest!
Take payment for yearly only if you want. And charge them for the fee's.
Though I would I agree with this:
I've tried to keep it as easy as possible for people to pay the way they want, because I don't want to miss any business.
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04-04-2006, 03:22 PM #20Aspiring Evangelist
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I think there are both good and bad points to them. The main thing is there can be no chargeback.
I am happy to accept checks from clients, but I don't have an option in signup for them. Maybe I should add it. Do you take them? If so do you have the option in signup for them?MK Hosting - Reliable Affordable UK Hosting Since 2005
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04-04-2006, 03:32 PM #21Invented the Internet
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We hate accepting checks and here's why...
There's no automated process for it, so it costs labor to process these payments. From opening the mail, filing the check, marking the client as paid, going to the bank and depositing the check, handling bounced payments, etc. One or two checks a month isn't a big deal...but once you get more than a couple dozen, it can really eat up your time. Time is money.
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04-04-2006, 07:07 PM #22Web Hosting Master
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If you develop a good system for handling checks, they are no more a bother than credit cards. We process 20-40 checks a week with no problem, and our clients are happy we accept them. But, if you're not organized or "wired" to handle this, then I guess it could be problematic.
A once a week trip to the bank (I assume you have to deposit a paycheck anyways or stop by the ATM) is pretty easy, so you knock it all out at once.
- John C.
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04-04-2006, 08:54 PM #23Web Hosting Master
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Originally Posted by steven-v
That's one of the mistakes I made with HTTPme, and something I've since corrected. I'll take money in whatever form you've got. Heck, I have a local client who drops cash by the house, every 3mths. Works for him and it works for me.
There's no reason I should turn these folks away, when they're wanting to give me money, just because they don't have a credit card. Checks and manual payments are a snap to process with ModernBill anyways. I usually bank them on the way to and from my favourite coffee shop, so I'm not going out of my way or anything.• WLVPN.com • NetProtect owned White Label VPN provider •
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04-04-2006, 10:07 PM #24Junior Guru Wannabe
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If you develop a good system for handling checks, they are no more a bother than credit cards. We process 20-40 checks a week with no problem, and our clients are happy we accept them. But, if you're not organized or "wired" to handle this, then I guess it could be problematic.
A once a week trip to the bank (I assume you have to deposit a paycheck anyways or stop by the ATM) is pretty easy, so you knock it all out at once.
- John C.
However, Tina said she hates accepting them, not that she refuses them. After all:
You SHOULD accept any possible ways for money from customers including Money Orders, Check by Mail, Wire Transfers and Western Union.
...why turn away profit?
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04-04-2006, 10:41 PM #25Retired Moderator
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All in all, it comes down to what you can or are willing to handle...