Isn't a check the same as cash?

debodun

debodun

SF VIP
Location
way upstate in New York, USA
I've been dealing with maintenance contractors and some will give a discount if I pay in cash. I say yes, it will be cash in the form of a check. Then they usually say no discount for paying by check. To me they were always synonymous. Why do so many demand cash and most usually want 50% as a downpayment. I am dubious about that. They have your cash and no guarantee that will even return.
 

Checks are not the same as cash. We stopped taking checks in our business many years back unless it was someone we knew really, really well. Chasing bounced checks can be a serious headache and massive time waster, plus funds aren't always recovered.

We took cash and CCs. 3% discount for cash, which was equivalent to what we paid in CC company processing fees.

What are you doing that requires a 50% down payment?
 
debodun said:
I've been dealing with maintenance contractors and some will give a discount if I pay in cash. I say yes, it will be cash in the form of a check. Then they usually say no discount for paying by check. To me they were always synonymous. Why do so many demand cash and most usually want 50% as a downpayment. I am dubious about that. They have your cash and no guarantee that will even return.
Click to expand...

Be sure you get a receipt that says the cash you give him is a down payment for future work. Also make sure they are reputable and licensed and insured.

Some contractors want hard cash because they are fudging on their taxes, pay their employees in cash and don't want a paper trail. Also, as Starsong said above, bounced checks are common.
 
You should be more than dubious about a 50% deposit. 10 - 15% is what's usually required. Anything more than that makes you less "customer" & more "victim."
I just had my house copper re-piped, new drains out to the street, new supply lines, new underground gas lines, 4 faucets, 4 toilets; over $70,000.00. Zero down. The plumbing company said I could put 10% down if I wanted to but it's not necessary.
I also got 2 estimates on a new roof. Both were 10% down.
And the reasons cash is preferred: No record of payment & no IRS reporting.
https://www.lyonsroofing.com/blog/2015/december/should-i-pay-a-roofer-roofing-contractor-upfront/
 
Checks take too much time to clear - could take over a week before they get their ACTUAL CASH.
We've used an ACH electronic transfer - THAT is just like cash and puts the $$ in the contractor's account, usually with in 24 hrs.
 
Checks can be validated immediately. About 5 years ago I paid with a check to a auto repair shop for the sum of $4,600 and it took about 60 seconds to run the check through whatever system he had and I was good to go.
 
I always take checks for my artwork. I want so badly to trust people.
I recently had some work done onmy house. After the man finished, I said, "Thanks! What do I owe you?"
He said, "Whatever you want."
I wrote him a check, gave it to him and he stuck it in his pocket. He didn't even LOOK at it.
THAT WAS SO COOL! I was REALLY IMPRESSED by that action!
 
Keeping in mind that over the past year Materials Cost have risen over 75%. I am sure you will see estimates WAY MORE than you would expect.

Debodun - you don't give the contractor YOUR account info - He gives you his. You cannot make a withdrawal - only a one-time deposit.

Win231 - if you're worried about them over charging for materials - get the materials list and place the order by phone - putting it on your credit card. Many times the contractor gets a discount from the supplier. Ask if you can order on his account!
 
The Important thing is dealing with a contractor who is reputable....recommendations from others you know who have hired him is by far the best. The world is full of stories about those who "paid up front" and never saw the guy again.

It's not unusual for a roofer to ask for some money in advance....and cash is far easier for them to use to purchase a bunch of shingles, rather than having to go to their bank and often wait for the check to clear before they get the money....that's why they prefer the cash, and often offer a discount. And NO...a check is NOT the same as cash.
 

Back
Top