DealersEdge Professional Forums

We have some less than scrupulous individuals in our territory, <gasp> and I am considering instituting a "no checks" policy here. Bad check fees, non collectables and NSF/closed accounts are killing me! OK, I really don't take many in now; most are debit cards and credit cards, so I really don't think the change will be a huge factor.

I was thinking of posting something at the cashiers window and service consultants workstations stating as of 1-1-04 we will no longer be accepting personal checks.

If I go this route, what are your thoughts as to repercussions etc?

I am seeing this more and more in my neck of woods as debit cards now rule the day. Let's be honest, people don't use debit cards because they lack the funds or want the float.

The check guarantee people will tell you you're turning away business, but if it is a unprofitable segment for you, why even bother. Anymore I am leary of check writers at the cashier - sad but true commentary of life.

One thing to consider - are you part of a larger dealership group. What brings this up is the trouble that KB toys went through a few years back. They stopped allowing checks in stores with high level of bad ones. Unfortunately, these happened to occur in predominately minority neighborhoods. This brought lawsuits of discrimination.

The only other thing to consider are your fleet/business customers that may require a check. Business can be helped by saying no "personal checks" are accepted.

In the meantime, you might consider a check service to take care of any deadbeats. There are a ton of web based services like http://www.checkrecoverysystems.com

Do a Google search ... you'll find many.

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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

We have solved this with a .49 per check transaction. It works just like a debit card, we actually hand the check back to the customer, like the debit card.

Will it prevent a stop payment? No, but it does catch NSF and closed accounts etc.