INFORMATION 01-11-2009INFORMATION
City of
Elk -.-~
River
MEMORANDUM
T ay~r and ~y ®unci~
ave ®an, ~u®r tyre ana er
January M ~ ~ ~
° heck ccepance
As you knour, accepting checl~s has been risky at best. We currently have X2,523 in bad
checks that may ox may not be retrieved Exam our collection agency. Furthermore, our banl~
charges us X3.00 per NSF checl~. I believe this is an expense that we can easily eli~niriate.
Checks as a percentage of our payments have been declining far years and now male up
only $% of oux total receipts. dux customers have switched over to debit ox credit cards and
most people who currently write checks have access to a debit card.
Although there is expense involved in accepting cards, it is an expense that can be budgeted
more closely than guessing how much to write off i.n bad checks. There would also be an
indirect savings in finance department time and expense in dealing with bad checks.
I would like to stop accepting checks at both stores beginning April ~, 20I0. '~Ie will give
plenty of notice to customers with signage. Informational cards will also be included with the
receipt of all customers who pay with checks up until April I, 20I0. ~1e will closely monitor
the feedback from the customers that write checks.
If you would like to discuss further, please feel free to give me a call at 7~3.635.~337.