The Top 5 Myths about Accepting Paper Check Payments

Wed, Sep 27, 2017 @ 11:30 AM

     

In the after years of the countless technology advances that have disrupted businesses, there are still lagers who haven't adopted to digital transformation. Over half of all business-to-business payments still take place by paper check, sent via snail-mail. Research finds that many of these organizations are complacent with a process that works exactly as it did decades ago.What's the reason behind companies not making the switch to digital payments? Are they the die hard believers of the saying "if it ain't broke, don't fix it?" Or maybe they're a perfect example of a quote from innovator Steve Jobs, "A lot of times, people don't know what they want until you show it to them." We find this especially true when we demo to clients, how easy it is to automate accounts payable payments.

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Here are the top 5 reasons why companies haven't switched to online payments.

1. "Our customers pay us by check, and it works just fine."

These are the, "if it ain't broke, don't fix it" crowd. With conventional checks, you don’t know when or if you’ll be paid until the check arrives. With online payments, you know immediately when a payment is made - no more waiting for a check that’s “in the mail."  And you can get your money in just a few days, which significantly improves cash flow.  

2. “Checks are free. We can’t afford to lose a chunk of our payments to processing fees”.

Automating your payments actually saves you money. Sending a check is ten times more expensive than the internal or external cost of sending and receiving an ACH payment. The median cost of sending a paper check is approximately $3.00. Receiving a paper check is more than five times as expensive, at a cost of $1.57. The median internal cost for sending and receiving ACH payments is $0.29 and the median external cost for sending and receiving ACH payments is $0.27. You do the math; if you are processing a high volume of paper checks, the costs add up. ACH payments have a significantly lower annual cost that can not be ignored.

3. “Our customers are comfortable paying by check; they won’t use online payments”.

We’ve found that when businesses make online payments available, their customers flock to the online option. Paying online is easy and convenient for your customers and actually saves them time. Paying by ACH, virtual card or eCheck is as simple for your customers as paying by credit card, but costs you much less. And when you set up an autopay option, your customer can “set and forget” an automatic payment to you every month, so you always get paid on time.

4. “We can’t deal with multiple payment systems for credit cards, ACH, eChecks, etc.”

You don't have to. With a SaaS provider, such as OnPay Solutions, you can accept ACH, wire transfers, checks and/or virtual card payments in a single cloud-based system. Gain peace of mind and transparency with a consolidated view of payments and settlements in one place.

5. “We don’t have the resources to implement an online payments solution”.

Automation is not cheap, but it is more affordable than you think. OnPay Solutions offers affordable A/P and A/R automation services to small to midsize businesses. Our cloud-based software integrates seamlessly with any ERP system and requires minimal work from your IT team. Let us worry about the implementation. Clients also appreciate the level of support we provide.

In an economy where every competitive advantage helps an organization "get the edge", the cost savings, efficiencies, and improved control and security gained by automating payments can no longer be ignored. Learn more about Accounts Payable and Accounts Receivable automation with a one-on-one live demo. 

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