Check payment issues are often arisen in the day—to—day accounting task, either it is a check payment in or out, examples: check returned due to insufficient funds on customer’s bank account, lost check due to possible address change, checks returned unpaid from customer’s bank in significant numbers, vendors may ask copy of check payment that company have made already, missing signature on the check, dishonored check, check issuance cancellation. All those issues need to be addressed immediately. Whether it is an innocence mistake or a big issue that potentially leads company to a financial disaster, first thing must be taken is to communicate the issues with the customers or vendors right when the issue is known, either by making a phone call or by a letter [e-mail] submission. Phone call is the best that you can go for addressing such issues faster, but official letter [or email] is always required as a follow up. I know, writing an official [yet, sound professional] letter or email could become even more tough compare to any other accounting tasks. Here I provide some letter [email] templates cover check payment issues that you can use to communicate with customers or vendors. Of course, they are not covers any issues that may arise. But it covers the most common issues happened. Enjoy!

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Check Returned Due To Insufficient Fund

Check returned due to insufficient fund [commonly coded as “NSF”] is not only late payment, it is obviously a sign that customer is in a cash flow [financial] problem. You should contact the customer just as soon as you receive the return message from the bank. Here is a letter [email] example template that you can use:

 
______________________[Company Name]
______________________[Street Address]
______________________[City, State, Zip Code]
Tel: _________________[Telephone Number]
Fax: _________________[Fax Number]

__________[Date Written]

 

Re: Returned check # _________[Check Number] for the amount of $________[Amount]

 

Dear _____________[Mr. or (Mrs.)]

We are writing this letter to inform you that check # __________[Check Number] was returned to us for ‘______________________________[reason returned (i.e. insufficient funds, stop payment]’. The checks were written to on ________[Date] for________________[Product/Service].  Please send us a money order for $_________[Amount] which includes $__________[Amount] service charge plus the original amount.  We would advise you not to delay to rectify the problem.  A bad check will affect your credit once it is notified to a national check guarantee system.  We need to hear from you by __________[Date]. If you have any problems, please feel free to call me at ______________[Phone Number].  

Thank you for your cooperation in advance.

 

Sincerely,

_________________[Name]
_________________[Position]

 

 
Notice Of Dishonored Check

A dishonored check is a more clearly sign [it is 99.9% sure] that customer is not in a condition to pay your invoices. So you need to submit a clear and strong reminder to them. Here is an official letter template for first communication [for the respective issue].

 

Date: _________[Date]
To: _______________[Name]

 

Your check in the amount of $____________[Amount], tendered to us on ___________[Date] has been dishonored by your bank.

Unless we receive good funds for said amount within ______[Number] days of receipt of this notice, we shall have no alternative but to commence appropriate legal action for its recovery.
Very truly,

 

_______________________________

Check Not Received Due To Possible Address Change

So you [and your office] just moved, and some customers might not receive notification yet. This will delay payment [checks submitted by airmail or courier]. This is not an issue created by customer, but yours. There is no way for customer to know that your address changed until you send notification. Here is a letter [email] template you can use to let the customers know. [Note: this should be followed by re-scanning all customers who may has not been notified yet about the new address].

 

____________________[Name]
____________________[Street Address]
____________________[City, State, Zip Code]

___________[Date Written]

____________________[Receiver’s Name]
____________________[Street Address]
____________________[City, State, Zip Code]

Dear __________[Name],

Your correspondence, dated ________[Date] indicated that I would be receiving a refund for the unused portion of prorated insurance coverage provided under the above referenced policy.

As of this date, I have not yet received this check. Since I have moved, I am naturally concerned that the check may have been sent to the wrong address.

Would you please let me know if a check has been mailed?  If not, I would appreciate your authorizing one to be sent to the address indicated above.

Thank you for your attention to this matter.
Sincerely,

_________________[Name]
_________________[Title]

Future Payments Must Be Made With Certified Funds


We receive check returned unpaid from customer’s bankers often. When it comes from the same customers constantly, then you may need to ask for a certified fund on the next payments. Here is a letter [email] template to ask for it:
 

____________________[Name]
____________________[Street Address]
____________________[City, State, Zip Code]

__________[Date Written]

____________________[Receiver’s Name]
____________________[Street Address]
____________________[City, State, Zip Code]

 

Dear __________[Name],

A review of your loan account indicates that you have had ________[Number] checks returned unpaid from your bank.

While we regret having to take this action, we must insist that all future payments on your loan be made with certified funds.  Any payment which is not certified will not be accepted and will be returned to you, possibly causing you to incur a late charge.

In making all future payments, please send them to the attention of _________________________[Denote] for proper credit.

Your cooperation is appreciated.

Sincerely,

   
_________________[Name]
_________________[Title]

Offering Photo Copy Of The Check

It is a good approach to let vendors know about payment you made just as soon as you made it. Why? The sooner you let them know the sooner your account got credited, it may entitled some discount for early payment you made, or at least you maintain a good credit profile that may reward you for a better credit term [e.g.; you get 45 days instead of 30 days]. You can submit photo copy of every check payment you made. If you haven’t done with this, you may want to offer it to your vendor. Here is a letter [email] template that you can use.
 
______________________[Street Address]
______________________[City, State, Zip Code]

___________[Date Written]

____________________[Recipient’s name/Company name]
____________________[Street Address]
____________________[City, State, Zip Code]

Gentlemen:

This is to acknowledge our receipt of your invoice #

A check of our records indicates that payment for this invoice was made on _________[Date] with our check # payable to you in the amount of $_____________[Amount].

Please review your records and bank deposits to be sure that you have not received our payment.  If you are still unable to find a record of payment, let me know, and I will request a photocopy of our check, and forward it to your office.  This normally takes about 30 days.

If I do not hear from you, I will assume that you have found our payment and have appropriately credited our account.

Sincerely,

_________________[Name]
_________________[Title]

Missing Signature On The Check

Missing signature on the check you received is anothersorry, late payment” notice and could be a financial problem signal on customer side. While say thank you for the payment they tried to make is necessary, indicating your expectation for more proper check arrangement in the future is a must. Here is a letter [email] template you can use.

 
________________________[Street Address]
________________________[City, State, Zip Code]

_________[Date]
____________________[Name]
____________________[Street Address]
____________________[City, State, Zip Code]

Dear __________[Name]

We thank you for your check in the amount of $____________[Amount]. Our enthusiasm was somewhat dampened when we noticed the absence of the authorized signature on the bottom of the check.

Naturally, we presume this is a mere oversight and are enclosing the check in question for your signature.

A postage paid envelope is provided herein for your convenience.

Thank you for your prompt attention to this matter.

Sincerely,


________________[Name]
________________[Title]
 
 
 
Asking for a Check Replacement [Not In Accordance With Contractual Term]

There is a time when customers send you checks that not in accordance with the contracts made for the service or products your company going to deliver. In this case you are supposed to not draw the payment yet, return the check instead and ask for a a check replacement in nice tone. Here is a letter [email] template that you can use.

 

________________________[Street Address]
________________________[City, State, Zip Code]

__________[Date]

____________________[Name]
____________________[Street Address]
____________________[City, State, Zip Code]

Dear __________[Name]

This is to acknowledge the receipt of your check for your pending order.  Thank you very much.

Unfortunately, this check is not drawn in accordance with our contractual terms for payment and we are, therefore, returning it to you.

Would you please authorize the issuance of a replacement check in accordance with the provisions for payment?

We are most anxious to deliver your _________________________________[Specify] and will be looking forward to hearing from you in the near future.

Sincerely,

________________[Name]
________________[Title]

 

 

Hope those “check payment issues letter [email] templates” just enough for now. I will keep posting centre-potential.ru related issues letter [email] templates here. If you find them useful, you may copy the template for your best use. Feel free to modify them so they suit your needs.