Msg#: 3970048 posted 8:33 pm on Aug 11, 2009 (gmt 0)
I've never accepted them (never had anyone ask ti use one), but I would guess is that the risks are similar to accepting personal checks. The credit card companies always tout that using them is "just like writing a personal check."
On the plus side, you save CC processing fees and (as far as I know) the consumer can't issue a charge back. (But I think they could always do a stop payment, like with personal checks.)
Msg#: 3970048 posted 9:37 pm on Aug 11, 2009 (gmt 0)
They are just like normal checks (cheques), except the money is paid for from their credit card account as opposed to being funded by a normal current/ checking account. There isn't the risk of chargebacks and your bank will treat them as normal checks.
Msg#: 3970048 posted 9:51 pm on Aug 11, 2009 (gmt 0)
If they have the card, why would they use the check?
In many cases, they offer a special interest rate for purchases made with the checks. (But if you read the fine print, they usually hit your with a service fee for each check. That "0% interest" for 1 year may actually cost you 4% as soon as you sign the check!)