Hopefully you have a credit policy in place BEFORE you receive a bad check. If you don't there are still things you can do to get paid on this check and avoid any future bad checks.
Immediately upon receiving the check back from your bank, you want to call the person who wrote you the check. Do Not Wait. Call them right away and if they are local, tell them you need them to come in right now and make good on the check and any NSF fees. If they aren't local and coming in is not an option, take a credit or debit card payment over the phone and if they cannot do that, tell them to send a money order. If you call them and get a machine, leave a message.
You then want to send them a demand for payment by certified mail. I have sample Demand for Payment letters in my e-book "How to Get Your customers to Pay, Fast, Easy, Effective Letters".
I also have included in this blog under BAD CHECKS the amounts you can charge by state, I try to update them as they change, but it is a very good guide.
Remember to post what you will charge for returned or NSF checks in your store, or office. If you have a home based business or an office that clients or customers don't visit, make a note of what you will charge for returned and NSF checks on your statements and/or invoices.
You should always let your customers know BEFORE HAND, what the fee will be for any returned or bad checks. You may also want to re-evaluate their credit limit, if they have one and what form of payment you will accept from them for future purchases.
Receiving a bad check can be just a mistake or a sign of credit problems. Be sure to review your customers past payment and credit history to see if this was a realy mistake or if they have been slow payers in the past or had any kind of payment problems.
and make sure you have a policy in place to deal with bad checks BEFORE they happen!
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