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Old 12-18-2018, 03:34 AM
 
Location: Oregon Coast
4,380 posts, read 1,628,923 times
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Quote:
Originally Posted by duster1979 View Post
I work for a small business, and this isn't the first one I've worked for. That's why I'm cognizant of the issue. No business I've ever worked for has ever paid "check processing fees", whatever those are. Someone writes us a check for $100, we deposit it in the bank, the bank credits our account $100. No service charge ever debited for this purpose.
Do you have access to the bank statements? Obviously not. Banks have always charged check processing fees.

Google: business checking check processing fees.
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Old 12-19-2018, 08:25 AM
 
Location: Keosauqua, Iowa
8,930 posts, read 15,887,778 times
Reputation: 11550
Quote:
Originally Posted by Cloudy Dayz View Post
Do you have access to the bank statements? Obviously not. Banks have always charged check processing fees.

Google: business checking check processing fees.
Yes. I reconcile the bank statements. Every month for the last four years. We do not pay check processing fees.

The businesses that do generally fall into one of two categories:
  1. Remote location where paying a fee for check processing is more feasible than making frequent trips to the bank to make deposits.
  2. The person who makes decisions on banking services can't say no to a salesman.

And the businesses I write checks to locally don't use check processing services either. I can tell because when I reconcile my own bank statement I can see scans of the checks online, front and back, with the bank stamp on the back. Businesses that use check processing don't send their checks to the bank, so there's no cancelled check to scan.

I'm not sure who has led you to believe that this is a universal practice, but it's not.
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Old 12-19-2018, 02:48 PM
 
13,834 posts, read 23,160,922 times
Reputation: 18844
Quote:
Originally Posted by duster1979 View Post
I work for a small business, and this isn't the first one I've worked for. That's why I'm cognizant of the issue. No business I've ever worked for has ever paid "check processing fees", whatever those are. Someone writes us a check for $100, we deposit it in the bank, the bank credits our account $100. No service charge ever debited for this purpose.
If there are lockboxes involved - and MOST companies use them - there are per check processing fees.

As for checks, I do not mind accepting them in a business to business transaction. However, in a consumer application, there are significant fees related to NSF checks. In addition, there are a lot of costs related to chasing down and collecting from the scoundrels.
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Old 12-19-2018, 04:45 PM
 
Location: Keosauqua, Iowa
8,930 posts, read 15,887,778 times
Reputation: 11550
Quote:
Originally Posted by jlawrence01 View Post
If there are lockboxes involved - and MOST companies use them - there are per check processing fees.

For those who aren't aware, a lock box in this context is a service offered by a bank where payments can be sent to be opened by the bank and deposited directly into the payees account.

I'm not going to argue as to whether or not "MOST" companies use them or not, because I don't deal with "MOST" companies. However, I do know for a fact that the businesses I've specifically been talking about here - my local grocery store, pizza place, gas station, pharmacy, etc., etc. - don't use them. And I'm reasonably sure that very few of these types of businesses do anywhere. So I'm really not sure why the subject of lock boxes came up here.

Quote:
As for checks, I do not mind accepting them in a business to business transaction. However, in a consumer application, there are significant fees related to NSF checks. In addition, there are a lot of costs related to chasing down and collecting from the scoundrels.
We've only had to deal with a half-dozen or so bad checks since I've been here. All but one were from contractors who paid their bills anticipating receiving payments that they would get in the bank before their checks to us cleared. In each of those cases they went to our bank to cover the check and the $5 service charge themselves, usually before we even knew the check had bounced.

The other time was a guy whose methed-out ex girlfriend had stolen some of his checks and drained his bank account. It was a very small amount and we felt sorry for the guy so we just let it slide.

We've actually had a lot more problem with credit card chargebacks. At one time they were pretty easy to get denied in a retail environment by just telling the company that the customer still had the merchandise, but lately they seem much more interested in just doing what the customer wants.
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Old 12-19-2018, 09:33 PM
 
Location: Pittsburgh, not Paris. #MAGA.
10,130 posts, read 5,513,084 times
Reputation: 9941
Only use my card for the cashback rewards. I'd spend the same amount whether I used cash or card. I'm pretty frugal when I grocery shop.
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Old 12-23-2018, 02:38 PM
 
Location: Bay Area, CA
28,540 posts, read 43,940,191 times
Reputation: 19250
Quote:
Originally Posted by WellShoneMoon View Post
I'll be interested to read others' responses to this question. I've been using only my credit card for groceries, because I get cash back. But now I'm wondering if I'd save more money by using cash and thus preventing impulse buys.

I wonder too about the logistics of paying cash for groceries. How do you plan your grocery list without knowing ahead of time how much things cost? Do you do your shopping with a calculator in hand, adding the price of each item as you put it in the cart?
I keep a running estimate in my head, and if I'm short on cash when I get to the register, I quickly decide what's a "need" vs "want." For example, that $5 slice of cake from the bakery is a want - while the cat/dog food and toilet paper are a need. I don't always pay with cash, but don't use credit cards (just debit) either. And cash really is a better way to control that impulse spending! Something about handing over paper money just feels more REAL than swiping a card, imo.

And for those who use credit for the rewards & cash back, are these zero-interest/fee cards? I unfortunately don't qualify for those, due to my iffy credit score; so the one emergency CC I do keep around will charge interest on those purchases, whether or not I pay it off by the end of the month. Or it will have an annual fee, which offsets any "rewards" I may have earned.
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Old 12-23-2018, 02:52 PM
 
Location: Bay Area, CA
28,540 posts, read 43,940,191 times
Reputation: 19250
Quote:
Originally Posted by greatblueheron View Post
If you read the thread you'll see I agreed to cc use to collect points and implement stricter buying...and paying off cc at month's end...
You don't have to "agree to" anything, just because some folks here told you it's the better method... do what works for you!! As I said above, for ME it's much easier to overspend with a credit (or even debit) card than cash. And if everyone paid off their cards in full, as 99% of these posters claim to do, the companies would all go out of business very quickly.

Personally I know and accept that I lack the discipline, which is why I don't use credit cards anymore. And I'm hardly alone in that, considering the interest payments are how CC companies make their money.
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Old 12-23-2018, 03:00 PM
 
Location: Bay Area, CA
28,540 posts, read 43,940,191 times
Reputation: 19250
Quote:
Originally Posted by CypressHeat View Post
I used to be CC for the points and cashback for EVERYTHING, I'd be hardpressed to even find $10 cash, until recently. I too felt like I was spending way too much on impulse buys, groceries and eating out, as it was just too easy hand over one of my cards. So for December and November I took out cash for what I feel I should spend on food for the month, sticking to it has decreased my impulse buys by at least $100 each month, maybe more. That's way more than the few bucks or points I would earn if I kept using my cards. I think I'll stick with this formula for a while.
See? That's another good point! I think everyone who only uses CCs should try shopping with cash for a month, and see if their spending comes out the same... would be an interesting experiment, and I'd bet money they DO spend less & come out ahead (compared to what they'd get back in CC rewards).
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Old 12-23-2018, 08:33 PM
 
Location: Wasilla, AK
6,296 posts, read 3,397,164 times
Reputation: 12921
Quote:
Originally Posted by gizmo980 View Post
See? That's another good point! I think everyone who only uses CCs should try shopping with cash for a month, and see if their spending comes out the same... would be an interesting experiment, and I'd bet money they DO spend less & come out ahead (compared to what they'd get back in CC rewards).

My spending would be the same. But now I have to withdraw money from my account on a more frequent basis. And I wouldn't be getting any rewards. My primary credit card provides me with airline miles. The $1000 or so in annual fees since I got the card is much less than the 250,000+ miles I've accumulated over the years. At 25,000 miles per round trip ticket, that's 10 round trip tickets. I'd have paid much more than $1000 for 10 round trip tickets out of Alaska. And I always pay my card in full each month, so I have no interest charges to negate those miles.
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Old 12-23-2018, 09:10 PM
 
Location: Nantahala National Forest, NC
19,766 posts, read 4,152,364 times
Reputation: 24971
Quote:
Originally Posted by gizmo980 View Post
See? That's another good point! I think everyone who only uses CCs should try shopping with cash for a month, and see if their spending comes out the same... would be an interesting experiment, and I'd bet money they DO spend less & come out ahead (compared to what they'd get back in CC rewards).
I'm the OP and that is what I've done recently too. Still use cc but at times have a $100 bill to spend at store and stay within that limit...
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