Large companies carry out millions of transactions daily. Similarly, commercial banks process more than 24 million commercial checks annually. These checks are internationally recognized and are an essential part of the paper process. Transactions involve shipping information detailing invoices. In this article we are going to focus on electronic checks, especially their benefits. Keep reading to know more.
1. Faster payment and better control over cash flow
The first problem with conventional paper checks is that they take up to five days to reach their destination by mail. On the other hand, electronic checks can be emailed in a second or two. So these alternatives allow you to enjoy faster payment processing, which is what every business needs today.
2. Save money
In the case of traditional paper checks, payment is made by time, stamp, envelope, and paper check. Apart from this, the shipping cost should also be paid. In contrast, an electronic check can do the same job at a fraction of the cost of a traditional check. Therefore, you can save a lot of money as a business owner.
3. Save time
Electronic checks do not involve many manual steps before mailing the item. The process consists of printing the checks, signing them one by one, folding them, and then placing them in the envelopes. Finally, the envelopes are sealed and postage is attached. These steps take a lot of time.
On the other hand, an electronic check does not require these steps. Thousands of checks can be sent in a few minutes. So this alternative offers a lot of efficiency over the traditional method.
4.Security and Protection
Electronic checks offer a lot of security and protection. According to the ABA, check fraud caused a loss of $1.3 billion in 2018. Unlike traditional paper checks, an electronic check cannot be stolen and offers a higher level of security. Aside from this, banks can easily check whether checks are valid or altered in any way. Therefore, there is an additional layer of protection against fraud.
5. Support current accounting software
Another beauty of this alternative is that it supports many accounting software programs. Transactions can be entered into the system without the possibility of double entry. Plus, you can write checks at no extra charge. And the money saved can be spent on other important business matters.
6. Checkout from anywhere, anytime
Creating an electronic check and sending it is a piece of cake as long as you have a tablet, smartphone or computer. These devices must be connected to the Internet for the transaction to complete. So this alternative allows you to make payments from anywhere and at any time.
To summarize, if you are a business owner, we suggest you consider electronic payment solutions as an alternative to traditional checks. With this change, you can improve your business processes and save a lot of money at the same time. Hopefully, you will find this article useful.