Can a Check Issuing Company Really Improve Your Business’s Bottom Line?
No matter what type of business you’re talking about, maintaining a healthy bottom line is key. One part of the equation is the profit, while another part of the equation is the cost. Some costs are unavoidable, but others just drag a business down unnecessarily. And as it happens, writing checks may fall in the second category. Did you know that the average business check costs up to $20 to write, print, and mail? There are plenty of advantages to using checks in general, but when it comes to writing them yourself, there may be a better way. PaydayPact.Com may be able to assist you even if you have poor or no credit.
Many businesses are deciding that it makes more sense to use check writing and mailing services like Checkissuing. In addition to specific benefits like cost efficiency and protection against fraud, it’s also simply more convenient. For more details, just keep reading!
Reason #1: Payments will be more consistent
It happens to the best of us. Something urgent came up, and the payment deadline got missed by a day or two. While this isn’t a dealbreaker for most vendors, tardy payments can make a business look like they don’t quite have their act together – and that can tarnish a business’s reputation a bit. Check issuing companies literally form their operations around sending payments, though, so you (and your vendors!) can depend on payments being sent according to schedule.
Reason #2: Issuing checks will be cheaper
Who doesn’t love to save money? You’ll still obviously be paying to issue checks, but a check issuing company represents a lower cost than what the average business spends to write their own checks. Between the stationery supplies and the time spent on the process – multiplied by a few dozen to several hundred, depending on how many checks you write per month – the cost of issuing checks can add up to hundreds to thousands of dollars in a single month.
In addition to saving you money for each payment that’s made, a check issuing company will also free up the time that employees formerly spent on processing checks. Not that processing checks isn’t important, but there are usually more urgent things to do on any given day than print out tri-folds and lick stamps.
Reason #3: The service may include additional payment options
The focus of every check issuing company is issuing paper checks (no surprises there), but some of them also offer electronic check processing. You’ll have full control over each payment, just like with physical checks; this is just another option you’ll be able to offer to vendors. It’s convenient, it’s fast, and it’s secure. In fact, electronic checks are actually more secure and less expensive than their paper counterparts. The payment gets sent by way of the ACH system; the vendor then accepts the payment over the phone or online, and it lands in their account, completing the process. Even if some vendors aren’t ready to switch from physical checks to fully electronic payment methods, electronic checks might be a convenient middle ground for them.
Reason #4: Fraud risk will decrease
If you’re interested in decreasing your risk of payment fraud, you might want to take a closer look at how your checks are being issued. That’s because, if your business falls victim to payment fraud, the most likely culprit will be a stolen check. In some cases, a vendor will be responsible for the theft. In others, it could be a disgruntled employee. It could even be a random stranger who stole an envelope that happened to contain one of your checks.
Since check issuing companies are committed to handling sensitive data safely, they devote considerable resources to keeping that data secure. Not only do they have top-of-the-line cybersecurity, but they also use anti-fraud measures such as thermochromic ink to prevent check washing.
Why are businesses still using physical checks?
With so many advantages to using electronic payments, why are checks still so popular? Let’s take a closer look:
- Checks are convenient
No matter how much it costs in time or money, checks are still convenient. Why? Because they’re universally known and accepted. You don’t have to set up a whole separate system to issue or accept them, and the vast majority of vendors are happy to accept payment by check. Increasing numbers of businesses are offering various types of electronic payments, but that only works if their upstream and downstream vendors are also using the same payment systems. With checks, you already know that you’re good to go.
- You don’t have to pay extra to send a check
From a psychological perspective, this is important. Even though checks really can be costly to issue, there’s no menu at the end of the process asking you to accept an additional fee in order to complete the payment. Guess where you will see that menu, though? With some types of electronic transactions. This rubs some people the wrong way, so they end up sticking with paper checks after all.
- E-payments are difficult to set up
If you’re on top of technological trends, this probably won’t be too tricky. If you’re a small business that only recently made their first social media accounts, this could be a significant barrier. Some businesses are still hand-writing their receipts, so setting up an electronic payment system may not be a good fit for their business model. Checks, however, are something that they and everyone else is already familiar with – no setup necessary.
- Checks look professional
Even basic business checks look polished, and reflect well on the issuing company. Checks offer more formality than cash, but still seem more “real” than electronic payments. Plus, with a business logo and some contact details in the corner, a business check can actually look pretty sharp.
The takeaway
Check issuing services may not be a one-size-fits-all solution to the expense of writing checks, but they’re definitely something to consider for any business that wants to reduce unnecessary expenses. Outsourcing payments to a check issuing company is not only cost-effective; it’s also convenient, secure, and designed to accommodate your business’s future growth.
