Personal Finance

How Check-Issuing Company Can Improve Your Bottom Line

What’s so complicated about writing a check? If you’re talking about a business, there are a few reasons to use a check-issuing company instead of doing it yourself. Not only will you save money, but you’ll also save time and build trust with vendors. Electronic payments may be on the rise, but there are still many businesses that use checks as their preferred form of payment (whether they’re giving or receiving them). Even if your business wants to focus on electronic payments, it may still need to use checks as well.

If you don’t want to mess with the process yourself, you could use check printing services like Checkissuing. You might just be surprised at how much your business could benefit from it; let’s take a closer look at the details below.

Reason #1: You could use flexible payment solutions

Depending on the check-issuing company you choose, you could get them to take care of more than just your paper checks; they might also be able to handle electronic checks and ACH micro-transfers. You’ll still have total visibility for your payments; it’s just that you won’t have to be the one making everything happen. It’s a highly convenient way to make payments to vendors, and (as you’ll see below) you won’t be sacrificing anything in terms of cost-efficiency or security.

Reason #2: You could look more trustworthy to vendors

If you’re using a check-issuing service, your payments will be streamlined. The top services put the checks in the mail on the same day they were printed, and all payments (check or otherwise) are issued on a strict schedule. This means it’s less likely that a check will get lost in somebody’s “to-do” pile, or that a one-off electronic payment will get forgotten. The more consistent your payments are, the more vendors will recognize you as a top-notch client.

Reason #3: You could decrease the risk of fraud

Guess what kind of payment fraud occurs most often? That’s right – check fraud. It can happen when someone posing as a vendor steals a check, or it can originate from within the business. If you get a certified firm to process your checks, though, they’ll have resources dedicated to actively preventing fraud. They’ll also have strict protocols in place to protect your other financial information. Whether you’re worried about check fraud or cyber theft, using a check issuing company is usually a safer bet than doing it yourself.

Reason #4: You could save money

Did you know that the average check costs between $4 and $20 to print and mail? If your business regularly pays via check, that cost adds up. Most of it comes from the time your employees spend writing, folding, and mailing the checks; if you’re using a check issuing company, most of that money will be freed up to use elsewhere. Also, if there’s ever a need to update security protocols or other operational expenses, the check issuing company will handle it themselves.

Why do people still use paper checks?

A lot of people are so used to doing things electronically that the idea of paper checks seems almost quaint. Even so, plenty of businesses favor this payment method over other options. Here are the main reasons why:

Setting up e-payments seems too complicated

Remember, there are plenty of businesses that still issue hand-written receipts. Maybe the change has already swept across urban centers, but there are plenty of rural areas that are slower to update the way they do business. ACH transfers could seem strange, or “too good to be true”. Plus, most or all of their vendors might not accept these types of payments. The size of the business might also be a factor; if they have a relatively small client base, they might think that they aren’t big enough to be eligible for electronic payments.

There’s a certain convenience to using checks

Even though they aren’t that efficient or cost-effective, checks can still be convenient. Why? Because everyone knows how they work. There’s zero learning curve, and you never have to ask if a vendor accepts them as payment. If both upstream and downstream suppliers are already on board with accepting e-payments, it’ll be a lot easier for you to make the adjustment as well. If you’re alone in offering both forms of payment, though, you might end up wondering why you went to the trouble.

They’re a polished and professional way to pay people

Not only are they simple and familiar, but checks are also highly professional. Whether you’re using a checkbook or tri-folds, it’s a way to tell vendors that you’re playing things by the book. They’re more formal than cash but more immediate than an e-payment. They’re also extremely easy to customize; you can put the company logo and other relevant information on your checks for better recognition.

There are no associated fees

Sure, you’ll be paying for the cost of labor in order to write and mail them, but once that’s done you won’t have to mess with any additional costs. Some electronic transactions involve fees of five to 20 dollars each, which can eat into your profit margins if you use them regularly. If you know that you’re paying less than that to write paper checks, you’re better off sticking with them.

Paper checks vs. electronic checks

Let’s assume that you already know about paper checks. Electronic checks are similar, but they’re generally less expensive and much more secure. You send your payment to a vendor via the ACH system, which they can then accept via phone or online confirmation. Once that’s done, the amount on the check is transferred to their account.

Can using a check issuing service really improve your bottom line?

There’s no way to completely eliminate any costs associated with paying business-related expenses, but you can definitely decrease them. In the majority of cases, check issuing services do end up costing less than writing checks in-house; they’re also more secure, they’re more convenient, and they give your business plenty of room to grow.

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan

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