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  1. #1

    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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  2. #2
    Join Date
    Aug 2005
    Location
    Boston, MA
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    949
    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?

  3. #3
    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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  4. #4
    Join Date
    Mar 2006
    Posts
    76
    I take checks from my local clients, it's always nice.
    Same here. I accept, however do not like unless the project is large, checks from individuals that are not local.

    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.

  5. #5
    Join Date
    Feb 2002
    Location
    New York, NY
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    4,552
    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. There's nothing wrong with paying by check.
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  6. #6
    Join Date
    Mar 2006
    Posts
    76
    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.
    I totally agree. If the prospect is new to the internet PayPal will be something they might have heard of but have very limited knowledge in. Then there is also that fear of just handing your credit card over to someone that you do not know. Seems odd to the savvy internet use however it is very true.

  7. #7
    Join Date
    Feb 2006
    Location
    Swellyville
    Posts
    2,340
    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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  8. #8
    Join Date
    Sep 2003
    Location
    Saskatchewan, Canada
    Posts
    946
    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.

  9. #9
    Join Date
    Mar 2006
    Posts
    76
    This is why most providers who except checks/money orders will request the package be paid in full, if it is a budget plan
    Definitely. Most, including myself, try to get the check payment to be for the larger amount if possible. However, realize that if you are too much of a stickler on this a bad impression can be left.

    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.
    I have had similar problems. This is what makes things so difficult and time consuming. Banks make sure they do not lose money by charging anyone they can. Banks also have a tendancy to be difficult to deal with.

  10. #10
    Join Date
    Apr 2005
    Location
    San Francisco, CA
    Posts
    1,026
    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.

  11. #11
    Join Date
    Oct 2002
    Location
    Middle Dearth
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    21,050
    Company's who don't do that - sometimes loosing as much as 10-15% of possible earning.
    Actual stats, or something of a guess here?
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  12. #12
    Join Date
    Mar 2005
    Location
    Canada
    Posts
    105
    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.

  13. #13
    Join Date
    Feb 2005
    Location
    Delaware
    Posts
    581
    I agree with the others. What could the risk in taking it be?


    -Jim

  14. #14
    Join Date
    Sep 2003
    Location
    Saskatchewan, Canada
    Posts
    946
    Quote Originally Posted by Jimerson
    I agree with the others. What could the risk in taking it be?


    -Jim
    As I said before, bounced cheques and bank fees as a result

  15. #15
    Join Date
    Mar 2006
    Location
    Katy, Texas
    Posts
    170
    Quote Originally Posted by steven-v
    You SHOULD accept any possible ways for money from customers including Money Orders, Check by Mail, Wire Transfers and Western Union.
    Checks by mail have been a pain to deal with for me. They either don't arrive or arrive terribly late when sent and this just leads to a great deal of headache. Then there is the possibility of a bounced check (some backs have fees on this). Even if those percentages are 100 percent accurate, the truth is that (especially for small businesses) there is a possibility that you will lose a bit more by accepting the payments (lost time, customer confidence, etc) than you would gain from the added business.

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