taking payments with check over the phone?

by 78 replies
94
hey guys are any of you taking check payments over the phone?
or fax or email? i know there are software out there that let you do that.

if there is anyone out there doing this
my question to you is.
are you having problems getting the clients to agree to pay you in that form of way?

the reason why i ask is because my agents has trouble getting paid by checks..

the customer just wants to hand over the credit card info instead. and to me that seems to be the same. i mean what is the difference if you give me the cc info. if i was a scam i would just go and buy a bunch of things online. the same thing if i was just to get his routing and account number from their checks.
#offline marketing #check #payments #phone #taking
  • Why would you even make this an issue?

    If the customer wants to pay by CC, let them.

    Overly psychoanalyzing the scenario is not going to change the fact that if a customer wants to pay by CC, you are burning valuable time and potentially alienating customers by trying to get them to pay by check.

    If you use are using a payment processor such as PaySimple, you can offer customers the choice of paying by CC or check.

    Hope that helps.


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    • I print all my checks, I don't even bother with ACH regulations anymore
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    • im sorry i guess i didn't write that i am having trouble with paypal and i am never going back to them, then i used square and the same thing there.
      then i used merchant one but they also put a hold on my account because they said that SEO is a high risk account. so therefor i am done taking credit cards
      ive looked bad with clients because of them.
      i had 8,000 refunded because of that, and today i had 2 clients ready to pay me 2,500 and i couldn't take them because of credit cards.

      i mean i am so frustrated with this. by now i should be all settle down and shouldn't be worried about money. but credit cards are giving me a hard time.

      i guess i need to find a way to make businesses understand that a check is no difference than giving me their cc info you know.
      but i am having a hard time doing so.
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  • If they want to pay you with CC, check or monthly installments try and cater to them. Be flexible when it comes to payments. Money is money
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  • "Why dont I just give you a credit card".




    Now, I have been trying to avoid threads that ask for full blown pitches and rebuttals...because Im writing a pitch book right now, BUT here are a couple that will help you (above) off the cuff.

    Rebuttaling is not always about providing a solution, because most objections... are based on irrational fears and not reason, so you cant counter with reason.

    So when we say "If not having money in the account is the issue bob...", not because they have said its an issue, but just as a transitional statemtn to the next thing we want to say...you cant reason with irrational emotion, but you can baffle it, get it off its course, and direct it back to why they want to buy and why they need to act with urgency.

    Hope this helps.
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  • This guy hasnt answered any of the responses. I hope we arent just writing someone elses reports for them again. Thats why Im learning to avoid certain types of posts.
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    • @iAmNameLess I understand your process for taking checks over the phone, but how do you work around the company's/client's signature on the check?
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  • @ azerews

    go to "check man" checkman.com, and order check draft paper for this.... The site will educate you. I used this process and site for months when I didnt have a merch acct.

    I have probably done at least 40 checkman check by phone payments personally over the phone and deposited and cashed the checks from it.

    Note: As naturally the sole proprietor of your business, you will do yourself a favor and go down to the county clerk and file a DBA, which is a name you do business under.

    If you call yourself "chicagowebdesign" and thats your dba then get it registered, so you can go to a bank and get an account under that name and your checks wont look like they are going to joe schmoe...

    You can do it without this but it helps you look a little better.
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    • Yes. ACH regulations can be a pain, and going through a service that processes checks for you is essentially the same as a merchant account in the way that they can put holds on your money, and your account. Printing checks, you are taking out the middle man... It is you, your bank, and your client... instead of your client, your clients bank, your processor for ACH payments, your merchant account, and your depositing bank account! Simplifies the process and eliminates a big chunk of risk.

      I know... I've been done with paypal for a while. LOL. All merchant accounts are like that though. You will never regret it doing things this way instead. It's sooooo much better. I can actually have a gripp on my finances without wondering how much they'll be taking out, or if there will be a hold on my next 10 payments, or if there's going to be a random chargeback.
      Yeah... some banks, will even allow you just to use an EIN and the company name you used with the EIN

      I never used checkman, always used this ezcheck printing software that I got for free.

      Checks FTW!
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  • @John

    Funny you mentioned that. I was just researching online before IAmNameless responded and I came across the checkman site. It does have a lot of good information. Thanks for the heads up.
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    • Yes, its an excellent alternative to a merch acct. Again, I have used it myself and would again.
  • Most people that wont do checks are closet "Charge Backers". Thats why I say "we do all of our billing by electronic checking for both your protection and ours...fair enough?"

    By the way folks, while we are on it...the key to asking for a check like making the above statement ( :confused: )...is to sound "matter of fact".

    Its the way you turn the phrase that makes it work. Just sound "matter of fact" when you ask for billing.
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    • I never had any real training, all was just picked up as I went along. I didn't have the WF when I got going lol...

      I was awkward my first closings.. once I expected them to be fine with it, and then think its weird for them to even question it, I did MUCH better. Same thing with checks... I don't know what sounding matter of fact is John LOL, but I just expect them to pay. It's all confidence to me I think.

      I really like how you say fair enough.. I have REALLY noticed that saying "Fair enough" is VERY effective. That is one of the first things I ever picked up on with sales.
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  • It gives you a chance to make sure they are still with you, an gives an indication that there's reason to proceed.

    like a preacher says, "can I get an amen?"
  • John hit the nail on the head with the "policy" statement IMO. I rarely have anyone argue against the phrase "company policy". The few that do get in a fuss about it either don't have the funds in their bank (qualify out for me - if they are living on credit cards then I assume they don't have sustainability in mind) or they aren't sold 100% and looking for an out (but that's something in our power to fix).
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  • I agree with the company policy trump card. I am going to pack that one in my arsenal alongside the 'Fair enough' card...man, I am getting all kinds of great tips today!
  • Try the "asking a question", and then saying "the reason I asled is because...." angle.

    You can do that three or four times in a pitch and keep it going...
  • I wouldn't do this myself to be honest. not a good practice!
  • Nice success! Keep it up!
  • You can write a check on a napkin from the local dinner, as long as the correct information is on it a bank has to take it. Truth.

    PS: Starting doing business like 99% of all other businesses. Accept checks!
  • People still use checks??
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    • Uhhhh... Only almost every business in the US.
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  • @iAmNameLess, @John Durham. Thanks for sharing your check printing sources. I went to the sites but I couldn't find the answer to my question. Will this work for receiving monthly payments from clients outside the US?
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    • Probably not. I haven't ever tried though.
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  • Crew Chief! Make the transition and you will NOT regret it! You're going to absolutely LOVE the extra money you save from not having to pay transaction fees.

    Man... it was SO FRUSTRATING waking up every morning not knowing if there would be a random chargeback, dispute, merchant hold, or what.. You'll be much happier, lol.

    For the authorized by your depositor line... I do it with the software. I'll try to take a screen shot later on when I have time to show you how I do it. If you end up getting that software, let me know, I might do a video tutorial for it. You could also rubber stamp it, but writing it yourself you shouldn't do.
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    • I downloaded software called ezCheckprinting but it does not really look like it would be the software you use. It seems more geared toward a business that needs to write checks for expenses etc. ...not a business that wants to accept checks as payment. of course, maybe I just don't know how to use it well enough.
      Can you tell me where you got your software or who it is made by? thanks

      see pic below of software I am looking at

      image hosting
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  • Thanks IamNameless. Can't wait to check out your video. Appreciate you putting it together for us!
  • iAmNameLess,

    How do you handle auto recurring monthly payments using checks only? Sorry if my question seems too obvious. I'm still trying to wrap my head around it. Like others, I though credit cards are the only way to go for payments, especially recurring monthly payments. Btw, thanks for the excellent tips. I've learned a lot today
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    • This is just a guess based on some basic play with check printing software back in the day... but you create profiles for each person/company whose payment info you get... so you only have to collect it once... but then you're able to print a new check as needed, e.g. every month.

      Then you just have it in the contract to the client that, on X day of the month your account will be debited for such and such, until the end of the contract.

      That way... they're not freaked out, you don't have to hound them, and you only have to press a button or two. On top of the profiles, there may be a way to set your software to auto queue checks for printing within specific time frames, so that means you'd think about it even less... but it depends on your software.
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  • Chris, your question is not obvious at all. I was wondering the same thing myself but figured I hounded IAmNameless with enough questions...so I am glad you asked.
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  • How about direct debit, there are companies out there that let you set up clients direct debit, no more hassles about charge back, unless clients stopped their DD
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    • Submitting confirmation, as well as a contract would be good. There are many ways around this. You will very rarely, if ever, have this problem.

      Direct debit is done through ACH, so that means you would likely have a merchant account with that and have to deal with all the BS that comes attached. Higher regulations, holds, and fees. It's essentially the same thing except you have it on a physical check. More trips to the bank to see the hot bank tellers, but that's worth it right?

      I meant to do the tutorial video last night but I haven't had much time, been swamped with projects, I'll try to do it tonight.
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  • you can use beanstream to take check payments.. but not sure about over the phone... you still would need to upload a csv file with teh bank info...
  • Over the phone, credit card is by far the better option.
  • Is online banking used by many businesses in America? I'm in Australia and in my previous business I very rarely saw checks, and never bothered getting a merchant facility as everyone pays via online banking direct into your account, it's just standard here for small businesses.
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    • Banned
      Ya....I've been using "Check" software ever since the banking industry made it OK to accept and deposit "Facsimile" checks.

      The first program I used was "Check-By-Fax". It was really cool because my "Fax Bulletin" program was a "Monthly Billing" where I entered the check info from the 1st check and every month I'd just open the software and print checks on my inkjet....stamp the back, "For Deposit Only" (just as if I had received the check in person) and deposit in my bank.

      And...every month I would send each client a "Paid Invoice" because for the 1st year I used this (I think it was 1992)....I'd just print the checks and deposit....until one day, a business owner calls and screams at me about me "stealing money from his account". He had forgotten he had SIGNED my Ad Agreement which stated I had permission to "Draft" their account UNTIL CANCELLED in writing!

      He had told his secretary to cancel and she neglected to contact me...so, for the next 9 mos I continued to perform the service and draft his account.

      So....since that experience I send each of my "Draft" clients a "Paid Invoice"....so that every month they are AWARE that money has been withdrawn from their account.

      And...as someone mentioned above....I'm now using "Q Check" (30day Trial and $99/year...1st yr...$59/yr thereafter)

      Don Alm
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  • Just how do you take a check over the phone? I missed this one
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    • Another service we have used and are currently using with several businesses is called V check

      It cost a bit more but has a lot of the features many were asking about including recurring billing automated notices etc

      v check solutions is the company name
  • Really great info. About to switch to checks.
    In 3 months I will be finished with Paypal.

    Hugh
  • Hello all,
    I just found this thread and would like to ad a few things to the info from IamNameless and Jhon...
    As long as I found is that you can only use this draft checks for a maximum of $ 500.00 for each check here in US. Also about the phisical paper checks you can save some money on the check paper by using refills from "VersaCheck" just use business size checks, this are cheaper than security checks from checkman or especially printed checks and make sure that you install the special font for the account and routing numbers.
    You don't need the signature script on a stamp, that is included in the software, you just need to select to put the script instead of a signature or empty line, also actually it is supposed that you can make this checks on plain white paper, but the clerck at bank could act a little nervous and ask for help to the manager, not many are familiarized with these checks, I have a ness that works at a bank and she told me that she just got one a few days before but she had never seen one before that and she has 5 years at the bank.
    I needed to offer another payment option for our services to our clients and is how i learned about this "Draft Checks" after the first one you just go naturally to the bank and make the deposits with all you other original checks from your clients. You should keep a recording of the phone authorization according to the rules, on my case I ask my clients to sign an authorization form with all their bank information, the ammount, and frequency of the automatic charges in case or recurring, you just need to keep your calendar to make the deposits on the authorized dates, and you don't need to state fix dates just use "every 30 days", or "every 1st. of the month", or "every X day of the month" that will run as long as your contract is valid.
    Hope this can help you all, just google "Draft Checks" to find more acurate info, also goto your bank's site.
    JoeR.
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    • Where did you find this information?


      Thomas
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  • Yeah, the FDIC site doesn't address any limitations on check drafts and I don't remember ever being questioned about the amount drawn. I've used this form of payment since the mid 90's at US Bank, WAMU, Chase and Wells Fargo.


    Thomas
  • Better yet, if one has any hesitations they can simply give their local bank branch a call and ASK them if they accept check drafts.

    I've never personally used them yet as I'm just starting out and have closed all of my sales in person thus far, but I have friends of whom use check drafts on a daily basis.
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    • I just wanted to thank everyone for the great information on this thread. I've always either physically picked up checks, had them mailed to me or had PayPal accept them for me. I have two merchant accounts and every time they give me the paperwork to accept e-checks I cringe. It's basically like signing up for another merchant account with more fees to boot.

      Now instead of picking up checks or having them mailed to me I'm going to use the suggestions here and start printing them out.
  • RepScraper, this is such a generous offer. I just checked out your site. Is this software compatible with the blank checks that I buy at the office supply store, or do I need to buy special paper?

    I came to WF today, looking for an autopay solution. As usual, the WF community came through. Thanks for the post!
  • Great thread!

    Yesterday I cold called some businesses and sold some ad space. Told them matter of factly, I take payment by check over the phone, "Do you have your check book handy so you can read me some information from it?" "Sure, no problem." was the response every time.

    Now I'm off to compare the various check printing software and go to Office Max to buy the blank checks. I'll the money in my account this afternoon.

    Thanks, guys!
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  • Amykay

    that is a great assertive way to get check info

    i myself use something similar but also fax then a check by fax form to have a copy for what they sent to me in the event of any issues. this way i cover my back

    also I use Electronic Check Payment Processing, Check By Phone Services instead of me printing the checks and going to the bank to deposit them.

    why??

    because i live in another country
  • You can try Check21.
    I can set that up for you within 24 hours. Its a very simple check payment solution with quicker settlements.
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