Large companies make millions of transactions a day. Similarly, commercial banks process more than 24 million business checks per year. These checks are internationally recognized and are an essential part of the paper process. Transactions include transfer information that explains invoices. In this article, we will focus on electronic checks, especially their benefits. Read on to find out more.
1. Faster payments and better control over cash flow
The first problem with conventional paper checks is that it takes up to five days for them to reach their destination by mail. On the other hand, electronic checks can be sent by e-mail in a second or two. So these alternatives allow you to take advantage of the faster payment processing that all businesses need today.
2. It saves money
In the case of traditional paper checks, time, stamp, envelope and paper check are paid. In addition, postage is required. In contrast, an electronic check can do the same job for a fraction of the cost of a traditional check. So as a business owner you can save a lot of money.
3. Saves time
Electronic checks do not involve many manual steps before sending the tool. This process involves printing checks, signing them one by one, folding them and then putting them in envelopes. Finally, the envelopes are sealed and postage is added. These steps will take a lot of time.
On the other hand, electronic control does not require these steps. Thousands of checks can be sent in minutes. So this alternative offers a lot of efficiency compared to the traditional method.
4. Security and protection
Electronic controls 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. In addition, banks can easily verify that checks are valid or altered in any way. Therefore, there is another layer of fraud protection.
5. Supports current accounting software
Another beauty of this alternative is that it supports a number of accounting software programs. Transactions can be entered into the system without the possibility of double entry. In addition, you can write checks at no additional cost. And you can spend the money saved on other important business matters.
6. Make a payment from anywhere, anytime
Creating an e-check and sending it is a breeze if you have a tablet, smartphone or computer. These devices must be connected to the Internet to complete the transaction. This alternative therefore allows you to pay from anywhere and at any time.
In short, if you’re a business owner, we encourage you to consider electronic payment solutions as an alternative to traditional checks. With this change, you can improve your business processes while saving a lot of money. We hope this article helps.