Are you primarily accepting and using paper checks for your business? Findings show that it may be time to make a shift from paper checks to electronic payments.
For example, in 2015 financial professionals processed 1000-1999 checks per month, however, today they only process 500-999 checks per month.
Professionals are seeing a decrease in the amount of checks that are being processed across the country.
According to a survey completed by the Association for Financial Professionals, the volume of ACH transactions has doubled in the last 6 years. The cost to issue and receive paper checks is approximately $2-$4 while ACH transactions are $0.26-$0.50.
With this in mind, paper checks are considerably more expensive than electronic payment methods. Electronic payments are also more streamlined and efficient, which is why small businesses should consider transitioning to digital payments.
Although processing paper checks is more expensive, this method continues to be popular among businesses. For example, in the survey by Association for Financial Professionals it was found that 92% of organizations accept paper checks for incoming payments while 87% are using ACH credit. For outgoing payments, on the other hand, fewer companies are using ACH. Roughly 86% of businesses use paper checks, while 78% utilize ACH credit and debit.
If you are only accepting and using paper checks, it might be time to consider switching to electronic payment methods to save on cost.
Not only will you be able to save money, but you will also have a more streamlined operation for your business and will be able to receive your funds faster.
If you have questions on how to implement paying and receiving funds electronically, contact us at 310-534-5577 or firstname.lastname@example.org.