Large businesses carry out millions of transactions on a daily basis. Similarly, commercial banks process over 24 million business checks on an annual basis. These checks are internationally recognized and are an essential part of the paper process. The transactions involve remittance information that spell out the invoices. In this article, we are going to focus on electronic checks, especially their benefits. Read on to find out more.
1. Quicker payment and better control over the cash flow
The first problem with conventional paper checks is they take up to five days to reach the 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 all businesses need today.
2. Saves Money
In case of traditional paper checks, payment is made for the time, stamp, envelope and paper check. Apart from this, mailing cost also need to be paid. By contrast, an e-check can do the same job at a fraction of the cost of a traditional check. So, you can save a lot of money as a business owner.
3. Saves Time
Electronic checks don’t involve a lot of manual steps before the instrument is mailed. The process involves printing the checks, signing them one by one, an folding them and then putting them into the envelopes. Finally, the envelopes are sealed and postage is attached. These steps take a lot of time.
On the other hand, an e-check doesn’t 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. Safety and Security
Electronic checks offer a lot of safety and security. According to ABA, check frauds cause a loss of 1.3 billion dollars in 2018. Unlike the traditional paper checks, an electronic check cannot be stolen and offers a higher level of security. Apart from this, banks can easily verify if the checks are valid or altered in any way. Therefore, there is an additional layer of protection against fraud.
5. Supports Current Accounting Software
Another beauty of this alternative is that it supports a lot of accounting software programs. The transactions can be entered into the system with no chances of double entry. Besides, you can write checks without additional expenses. And the money saved can be spent on other important business matters.
6. Make payment from Anywhere, Anytime
Creating an e-check and sending it is a piece of cake as long as you have a tablet computer, smartphone or computer. These devices have to be connected to the internet for the transaction to complete. So, this alternative allows you to make payment from anywhere, anytime.
Long story short, if you are a business owner, we suggest that 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 helpful.