Cash only for elderly customers?
- Thread starter Chris142
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Operate your shop the same way I operate mine:
Checks and credit cards only from established commercial customers.
Debit cards only, with ID. No credit card at all. Debit pin pad purchases are next to impossible to charge back.
Cash is always accepted. All bills scanned through counterfeit detection device.
Otherwise, take your a** somewhere else.
You can run a business, or you can run a charity.
A lot of people hate their boats and blame us for their screwed up boats being so expensive to repair.
I have occasionally accepted a check when dealing with large transactions, but the property stays locked upon a rack until the bank verifies the check has been paid out on their end.
If the bank refuses to provide information, the check is given back to the customer and they must go debit or cash.
The other alternative is I lien and auction their property in no time flat.
Checks and credit cards only from established commercial customers.
Debit cards only, with ID. No credit card at all. Debit pin pad purchases are next to impossible to charge back.
Cash is always accepted. All bills scanned through counterfeit detection device.
Otherwise, take your a** somewhere else.
You can run a business, or you can run a charity.
A lot of people hate their boats and blame us for their screwed up boats being so expensive to repair.
I have occasionally accepted a check when dealing with large transactions, but the property stays locked upon a rack until the bank verifies the check has been paid out on their end.
If the bank refuses to provide information, the check is given back to the customer and they must go debit or cash.
The other alternative is I lien and auction their property in no time flat.
They're smart. They've been ripped off by auto repair shops all their life; now they're getting even.
Originally Posted By: spasm3
Then you need to take them to small claims court. Its possible a few of these customers know each other and are getting over on the shop. Take one or two to court and it may stop.
This..its cheap. You don't need a lawyer. They get a hand delivered summons. The limit is $7500 in Cali. Its a no brainer.
Then you need to take them to small claims court. Its possible a few of these customers know each other and are getting over on the shop. Take one or two to court and it may stop.
This..its cheap. You don't need a lawyer. They get a hand delivered summons. The limit is $7500 in Cali. Its a no brainer.
Chris142, do you know what the implications will be if you start limiting how elderly customers pay for repairs vs customers say in their 40's?
Originally Posted By: Chris142
We have had a few bad dealings lately. And it's from people over 70. They will OK the work then pay with a ck on a closed account or call the credit card company and have the charges reversed.
We basically have no recourse. The D/A is too busy to mess with bounced checks and the CC companies always side with the card holder and not us.
Had another $900 job get cancelled today by a CC company. Think I'm going to be cash only from now on.
Thoughts?
In typical BITOG fashion, there are speculations without facts. The first thing you need to do is to find out why it's happening, and if the reasons are legitimate. If they are, then you need to correct the problem. If the reasons are not legitimate, then as a business owner you do have recourse available. If your local district attorney refuses to do their job, then there is the option of small claims court.
Your comment of "CC companies always side with the credit card holder and not us" raises a red flag. There must be a reason why the credit card companies are upholding the disputed claim, despite your proof of an acknowledged, signed estimate and invoice. I suspect there is a piece of the puzzle that isn't being told.
We have had a few bad dealings lately. And it's from people over 70. They will OK the work then pay with a ck on a closed account or call the credit card company and have the charges reversed.
We basically have no recourse. The D/A is too busy to mess with bounced checks and the CC companies always side with the card holder and not us.
Had another $900 job get cancelled today by a CC company. Think I'm going to be cash only from now on.
Thoughts?
In typical BITOG fashion, there are speculations without facts. The first thing you need to do is to find out why it's happening, and if the reasons are legitimate. If they are, then you need to correct the problem. If the reasons are not legitimate, then as a business owner you do have recourse available. If your local district attorney refuses to do their job, then there is the option of small claims court.
Your comment of "CC companies always side with the credit card holder and not us" raises a red flag. There must be a reason why the credit card companies are upholding the disputed claim, despite your proof of an acknowledged, signed estimate and invoice. I suspect there is a piece of the puzzle that isn't being told.
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I thought every business had that "telecheck" thing since the 90's that reads it immediately and will kick it back if it's no good,then prints out a receipt you give the customer with a number for them to contact about their account.
Double wasp its whats in the contract that matters because even with cash they can win it back in court.. Or in some cases if they go into bankruptcy 6 months after they handed you the cash the court can ask for the money back in full even if you did a perfect job. It happens all the time with corporate bankruptcy here in nj.
I forget how long they can go back i believe its around 7 months but i could be wrong.
I forget how long they can go back i believe its around 7 months but i could be wrong.
gathermewool
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Originally Posted By: crazyoildude
Double wasp its whats in the contract that matters because even with cash they can win it back in court.. Or in some cases if they go into bankruptcy 6 months after they handed you the cash the court can ask for the money back in full even if you did a perfect job. It happens all the time with corporate bankruptcy here in nj.
I forget how long they can go back i believe its around 7 months but i could be wrong.
This can't be true. You're saying a bankruptcy court can go to a local business and require they give a customer their money back solely due to the bankruptcy process?
Also, a credit card dispute takes < 5 minutes online. Taking someone to court to get your cash back takes a lot more effort.
Double wasp its whats in the contract that matters because even with cash they can win it back in court.. Or in some cases if they go into bankruptcy 6 months after they handed you the cash the court can ask for the money back in full even if you did a perfect job. It happens all the time with corporate bankruptcy here in nj.
I forget how long they can go back i believe its around 7 months but i could be wrong.
This can't be true. You're saying a bankruptcy court can go to a local business and require they give a customer their money back solely due to the bankruptcy process?
Also, a credit card dispute takes < 5 minutes online. Taking someone to court to get your cash back takes a lot more effort.
I'm not a lawyer, perhaps a mandatory arbitration clause in the service agreement the customer signs with stipulation that the loser pays the fees?
If your shop is doing things right, chances are, you'll win and your customer will pay the bill and the arbitration fees.
If not, well, your team has to step up their game.
If someone reverses the charges, etc, then when you take them into court you can explain they did not go through arbitration and you want payment and all court costs since the customer did not make a good faith effort to follow the agreement and try to resolve the problem with the established and agreed upon process.
If your shop is doing things right, chances are, you'll win and your customer will pay the bill and the arbitration fees.
If not, well, your team has to step up their game.
If someone reverses the charges, etc, then when you take them into court you can explain they did not go through arbitration and you want payment and all court costs since the customer did not make a good faith effort to follow the agreement and try to resolve the problem with the established and agreed upon process.
If it's a personal check, you have everything you need to take care of this problem.
Go to court, get your judgement. You can collect all your costs as well as the amount you sue for.
Don't bother with a lien on property if you want to minimize your costs, or alternately do place a lien to protect yourself.
The check has on it the bank transfer code and the account number of your fraudster. With a court order, you can place a Garnishing Order on the account. Time it correctly ... everyone has bills that occur at a specific time of the month, like the 1st for rent or mortgage. Place your Garnish order a day or two before that date.
The money will be out of their account and into yours before they know what happened. Also most elderly have Direct Deposit that can't be changed quickly, you will get your money.
This won't work if the account is no longer active, but that is fraud so you have other resources such as laying a charge or convincing a D/A to do so.
Where I am, a court order can be enforced by the Sheriff (different than a US Sheriff, which is more like a Police Officer; here the Sheriff enforces Court Judgements).
The Sheriff must notify the debtor but once a certain period elapses (30 days, typically), he can (and will) go to the debtor's property and confiscate goods like automobiles, furniture, actually anything of value. He has warrant power to enter the premises. They are then sold, no matter what revenue is, they keep going until the full debt is paid.
The debtor can make arrangements to pay if he or she is smart enough to respond during the 30 day (or whatever) settlement period, and avoid the above. Either way, you get paid.
Go to court, get your judgement. You can collect all your costs as well as the amount you sue for.
Don't bother with a lien on property if you want to minimize your costs, or alternately do place a lien to protect yourself.
The check has on it the bank transfer code and the account number of your fraudster. With a court order, you can place a Garnishing Order on the account. Time it correctly ... everyone has bills that occur at a specific time of the month, like the 1st for rent or mortgage. Place your Garnish order a day or two before that date.
The money will be out of their account and into yours before they know what happened. Also most elderly have Direct Deposit that can't be changed quickly, you will get your money.
This won't work if the account is no longer active, but that is fraud so you have other resources such as laying a charge or convincing a D/A to do so.
Where I am, a court order can be enforced by the Sheriff (different than a US Sheriff, which is more like a Police Officer; here the Sheriff enforces Court Judgements).
The Sheriff must notify the debtor but once a certain period elapses (30 days, typically), he can (and will) go to the debtor's property and confiscate goods like automobiles, furniture, actually anything of value. He has warrant power to enter the premises. They are then sold, no matter what revenue is, they keep going until the full debt is paid.
The debtor can make arrangements to pay if he or she is smart enough to respond during the 30 day (or whatever) settlement period, and avoid the above. Either way, you get paid.
Whatever you do, do not make an age dependent policy. That will open the floodgates for all sorts of discrimination claims.
Whatever policy you have, it applies to everyone.
I would stop taking checks. Honestly, most businesses seem to have already made this decision, and I don't fault them.
I'll admit I have no idea what the credit card processors require for recourse on a disputed charge. Seems fishy to me that they just side with the consumer if you can provide proof they authorized the work and charge.
If that is not an option, this then calls for mechanics lien. If legal (consult an attorney) your agreement should state the vehicle is subject to repossession in the event they default on payment (again, only if allowed by your state - contact an attorney). Small claims court is also another venue.
Whatever policy you have, it applies to everyone.
I would stop taking checks. Honestly, most businesses seem to have already made this decision, and I don't fault them.
I'll admit I have no idea what the credit card processors require for recourse on a disputed charge. Seems fishy to me that they just side with the consumer if you can provide proof they authorized the work and charge.
If that is not an option, this then calls for mechanics lien. If legal (consult an attorney) your agreement should state the vehicle is subject to repossession in the event they default on payment (again, only if allowed by your state - contact an attorney). Small claims court is also another venue.
I/we would never pull a fast one. If I see a customer in Walmart I don't want to have to go ducking behind something to avoid them.
I think the older people do not understand the cost of repairs on a newer car. The $900 job was 2 brand new lower control arms from the dealer. They cost us $380 each and we did not mark up the price. We only got a little bit of labor on this job. Any other shop would have doubled the price plus huge labor.
Nothing has changed on my end. I always treat my customers with respect.
Another job was a fuel pump. My cost on the new quality pump was $325. I had to remove the bed from the truck to install it. This was a $600 job and was paid on with a check from a closed account. The customer does not answer the phone.
I think the older people do not understand the cost of repairs on a newer car. The $900 job was 2 brand new lower control arms from the dealer. They cost us $380 each and we did not mark up the price. We only got a little bit of labor on this job. Any other shop would have doubled the price plus huge labor.
Nothing has changed on my end. I always treat my customers with respect.
Another job was a fuel pump. My cost on the new quality pump was $325. I had to remove the bed from the truck to install it. This was a $600 job and was paid on with a check from a closed account. The customer does not answer the phone.
Oh the fuel pump was towed in. We got stiffed on the tow also as it was added to her bill
There's no excuse for writing a check on a closed account - that's a total scam but I guess people with no money and a broken down car are desperate and will do desperate things.
What is the reason given on the CC chargebacks when you receive the request from the CC company for documentation and your response?
What is the reason given on the CC chargebacks when you receive the request from the CC company for documentation and your response?
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