Just thought I would give my 2 cents on this topic.
I worked for many different banks and for many years here in IL. I also own two businesses.
Unfortunately you are responsible for all the fees that incurred with this deposit. Why you ask? Well as far as the bank sees it you should not assume that the check is going to clear until it actually does. Now adays its a much faster process since theyre processed electronically. It can still take days to clear and for next time wait until it clears before spending the funds. Depending on the person who you talk to is in a good mood or not you may or may not be able to recover those fees. The bank is under no obligation to refund them as they will see it being your fault in the first place.
The other posts about the deposits going into an escrow account is correct as well. Anytime you receive a deposit for a product or merchandise you are selling and require a deposit that deposit must go into an escrow account until the merchandise is fully paid for. Once all is paid in full and the puppy goes home then you can turn around and use the funds. This process protects you and the buyer.
You should always use a contract of some sort and have a disclaimer that the deposit is non refundable after a set amount of days etc to insure that a person just doesnt hold a puppy for a week and then change their mind cause they ran out of money till next payday. this process 1). insures serious buyers 2). your not holding a puppy for someone who is not serious about buying it and lose out on a sale that could have happened while you were waiting. By using the contract the buyer is bound by the deposit and if in this case they cancel their check then you have a right to fight it in small claims court.
Paypal is not as guaranteed as some people think. In most cases paypal will reverse a payment that someone has made in a heart beat first and then follow proceedures later. They will almost always take the side of the buyer over the merchant. It can take up to 14 days to try and get your money back and its not an easy process either.
My advice to you is:
1. Dont mix your business and personal funds in one account
2. Open an account that will be used for deposits, holding, etc and dont use these funds until the sale is completed and the puppy goes home.
3. Make a contract stating that the person is bound by their deposit and that the deposit is non refundable. Also state that if the deposit bounces that they will liable for all fees from both your account and theirs and any associated costs, fees including by not limited to lawyers fees etc. This will definately scare a wishy washy customer away if there are any doubts.
4. Dont ever spend any money until the sale is actually completed and puppy is at their new home. This doesnt mean not to cash or deposit the funds by all means process the funds asap even if you have to go to their bank to cash their check. Leave the funds collecting in your new escrow account. Once the sale if final then move funds to your other personal or business account.
5. Get overdraft protection
These days you have to be so careful with selling anything to anyone. We should no longer assume that people are honest anymore. You have to treat everyone the same and dont let your guard down. Once that puppy is gone its going to be extremely expensive for you to persue anything in court without proper documentation, contracts, etc
Good Luck and I hope you make some changes to your business practices before its too late. |