I'm sorry that there are people that got caught in these types of scams but glad that light is being shed on them. I get text messages and emails with this exact scam every week. This week, I even had someone use Yelp messaging to try and run this scam on me.

A couple of people in this thread have said that the issue is not with credit cards, and you should take credit cards.

I'm going to respectfully disagree with part of that.

Most businesses that I run into either pay via check or by PayPal. Very few of them ask to use a credit card to pay. I have exactly one client that I make this accommodation for, and only because it's a relatively small amount on a monthly maintenance retainer.

There are two reasons I am reluctant to accept credit cards from a potential client.

One, if they don't have the money in the bank to pay for the project, then there is a possibility that there is a serious cash-flow issue with their business. Not always, but it's a possibility, and not a possibility that I want to get involved with if I can avoid it.

Two, if the client does a chargeback for any reason, you, the merchant are going to be liable for that amount. This is also a bad scenario, to say the least.

If they don't pay by check, or have the money transferred from their bank via Stripe or PayPal, you should look very carefully at the rest of their business before you sign on the dotted line, especially if it is for smaller clients (not big business).

When might it be okay to take credit cards as payment? If you are dealing with a larger company, one you have heard of, that has no cash-flow issues. Perhaps if you have a contact at the company that you know personally.

If you do not have a prior relationship with the potential client, and they appear to be a smaller, less established entity, I would use your best judgement, and approach with caution.