Last updated on October 18th, 2022 at 05:40 am
Are you wondering if switching to eChecks is right for your business? eChecks are a reliable and safe way for small businesses to pay expenses and bills more efficiently. With eChecks, the payment process is faster, and your vendors will appreciate receiving their payments within hours instead of several days. Here are just a few of the benefits you can expect to receive once you’ve switched your billing processes to eChecks instead of paper checks.
eChecks Increase Productivity
For many small business owners, writing paper checks is time-consuming and causes them to be less productive. With eChecks, there is no longer a need to waste time, and the check-writing process happens automatically through software programs such as Quickbooks. For high-cost expenses such as rent or utilities, you can set up recurring payments and have the software automatically withdraw funds from the business account each month, so every payment arrives on time.
Electronic Transactions & Payments Are Faster
When your customers have the option to pay with eChecks, they can use your online system to easily make payments and save time for both parties. All the customer needs to do is enter the routing and account numbers from the bottom of the check and the payment amount to pay bills or invoices. As online sales increase, the speed and convenience of electronic payments are welcome – and even expected – by both customers and businesses.
Reduces Business Expenses
When small businesses use manual check processing, they have to spend money on postage, envelopes, and paper checks from the bank. When eChecks are in place, there is no longer a need for these expenses, and the extra money saved can be put back into the business for other uses. In addition, eCheck fees are generally lower than credit card fees, and if you use credit cards to pay vendors, there are potential savings by switching to eChecks.
eChecks save money on the customer’s end as well as they no longer have to worry about the possibility of late payments and incurring fees. For small businesses, eChecks reduce the possibility of incurring bounced check charges because the money is coming out of customer accounts in a shorter timeframe than with manual checks.
Works Perfectly With eCommerce
Domestic and international businesses have seen a massive shift to online shopping. Not long ago, business owners asked, “what is an eCheck?” But the pandemic accelerated the growth of eCommerce, and the traditional way of purchasing goods and services changed forever. If your business has an online presence either through your website or an e-commerce platform, offering eChecks as a payment method is a way to increase profits. You can easily set up recurring payments for memberships and monthly subscriptions to establish a predictable monthly income. Offering autopay methods such as electronic checks makes it convenient for customers to make payments and help your business retain a higher percentage of your customer base.
eChecks Reduce Fraud
eCheck payment options are more secure than paper checks, and the systems used have security components to detect and prevent fraudulent activity. eCheck transactions go through an Automated Clearing House (ACH), and all data submitted is encrypted, thus making the information useless if stolen over an unsecured network. Before submitting a payment, the customer must verify their personal information through an authentication process, and digital signatures with time stamps are designated for each transaction to prevent duplication. eChecks reduce the likelihood that a fraudster will use a stolen check, and the vulnerabilities of paper checks are no longer a concern.
The benefits of eChecks make them a viable option for any size business. With the continual growth of eCommerce and web platforms, you need to offer payment options to your customers that meet their needs and exceed what the competition is currently offering.
Katie Tejada is a writer, editor, and former HR professional. She often covers developments in HR, business communication, recruiting, real estate, finance, and law, but also enjoys writing about travel, interiors, and events.