Today transactions have become more convenient, and various payment methods have made our lives easier. However, with convenience comes the risk of errors and fraud. Therefore, it is vital to be careful and vigilant regarding financial transactions.
Recently, a client of ours sold a few thousand dollars of goods. The people needed help figuring out what to get, so they put the goods on order and left the shop. A few hours later, they rang up, said it was going ahead, and asked for the payment details. Soon my client received a copy of the receipt for the cheque deposited at the bank. Then the people rang up to ask to pick the goods up immediately.
I will not go into the details, but the cheque bounced.
This can be a frustrating experience for anyone.
There are many reasons why a cheque can bounce; some that I have come across were:
> Drawer needed more funds.
> There are errors on the cheque
> The account was closed
> The person put a stop order on the cheque.
Many of you can add more points.
If you want to know how careful you must be, I once had a cheque bounce from a government department. I went to the department accounts personally and was told they could do nothing and that I would need to notify them in writing.
Exercising caution and taking the necessary precautions are essential when processing financial transactions. It is best to wait for bank clearance before releasing the goods or transferring ownership because releasing them before then can be risky.
They say that a bounced cheque can teach a businessman a valuable lesson about the risks and challenges of running a business.