Use of cheques.

[BVC]

I have had several bookings this summer where the guest has confirmed that they really want the booking [which we hold for 7 days pending receipt of their deposit] but then no cheque has arrived. When I have enquired I am either told that they have changed their mind or I get no response at all. In the meantime I may have lost several potential bookings.I would dearly love to be able to take credit/debit card payments but my business does not produce sufficient business to warrant the cost. Bearing this in mind, and the threat from the banks that they intend to make cheques obsolete in the not too distant future, does anyone else have any advice on this point. Does anyone know of another way of securing payments? I do have a Paypal account but this seems an alien concept to some. I am also happy to accept BACS payments but both these methods are reliant on the guest giving the instructions, unlike a credit or debit card which I could process immediately. Any advice or comments would be welcome.

[_Sharpe]

Why don't you take credit cards and charge the customer for the credit card charges? Usually about 3%? Everyone else does. Even HMRC does. Everyone uses debit cards nowadays and that's usually less than 30p a transaction. You don't even need a terminal now. You can pay 10 pounds a month and do it online. Easily recoupable charges through user fees which everyone now acknowledges as inevitable. Paypal is so last century.

[S_Gregory]

We have one self catering cottage, and got our card machine from Barclays (we dont bank with them !) as a member of our Regional Tourism Agency(One North East) we were able to get a discount. we pay £13.51 per month and a debit card transaction costs us 24p. we only make about 20 transactions per year but feel its good value as deposits and the booking is confirmed on the spot. We have stopped accepting credit cards as the cost per transaction are higher (a percentage of the ammount I think its about 1.5%)We have found over the last few years since we openened more and more people are paying by debit cards rather than a cheque, and its more convenient for everyone.

[Sue: White Horse Walking Holidays]

I took cards right from the launch of my business. It's essential to avoid the problems you describe - and is probably cheaper than losing bookings as a result. I found that I halved my rental by going through Visit Wiltshire instead of direct through my bank. If you don't start using them, then perhaps you should insist on a deposit cheque being sent by return post, first class.

[Susan Thomas]

I have had a card machine for many years now and have never regreted it once after losing over £2500 in on shows over a year i now take credit/debit card details as security on the booking it allows me to either charge a cancellation fee or take full payment if people just don't show which very rarely happens now.Federation of Small Businesses have a good scheme running with Streamline which i have found to be very good. I don't charge for the use of cards as by the time i have done a 12mile round trip to the bank, waited 5 days for the cheques to clear for which i am charged for anyway, the cards are clear funds within 24/36 hours andsometimes people stay ane xtra day or so when they know they can use card. Take the plunge i don't think you will regret it

[Sue: White Horse Walking Holidays]

Having just had my first bank charges - had 2 years free banking when I started up - I'm thinking the credit card charges aren't looking so bad after all.

Incidentally, I take 1 night's deposit with a B&B booking, even if they're only staying 1 night. 1 night bookings can mean you have to turn down longer ones. Regarding taking credit card details in case they don't show - is it OK to keep all those details including the security number? And if someone wasn't sure if they were going to turn up or not, they could easily give the wrong info.