How Much is it Costing Your Business to Accept Paper Checks?
Nov 9, 2023 by Kelsey Banerjee
Paper checks are one of the most costly ways to collect payments. Still, many businesses think getting paid by check is the most affordable method. While only 33% of businesses make payments by check, in 2021, 91% of organizations across the U.S. continued to receive checks, even though they understand the associated costs and risks. Of course, there are also many indirect costs to check processing, such as labor and processing fees. The bill can quickly eat into your bottom line — and that's before potential errors. It's no wonder businesses have been shifting from paper checks to digital alternatives that offer more convenience, data, control, and automation. The 2020 pandemic only accelerated the shift as consumers demanded contactless payments. Ditching paper-based payment methods can help companies cut costs by reducing the amount of manual work and payment fraud risk. In most cases, the solution will integrate with your ERP, making it easy for AR teams to navigate. Let's explore what it costs your business to accept paper checks and alternative payment options.
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