With America becoming more digital with each passing day, it is sometimes tough to remember that checks remain one of the most popular forms of payment. In many cases, the way Americans use checks has changed, with electronic checks and check-by-phone payments offering speed and convenience, as well as saving the cost of postage. Refusing to accept checks in person, by phone, or online can reduce a company's profit potential, but the fees associated with bounced checks, check fraud, and identity theft can be catastrophic, especially to a small business.
Check processing services are often the perfect solution to this dilemma. These services virtually eliminate the risks presented by checks, by scanning a copy of the check into a machine that is used on the premises of the business. The transaction is verified and approved in much the same way a credit card operates, cutting down on fraud and instances of insufficient funds. The transfer of funds takes place electronically, in most cases within 1-3 days, ending the days of needing to wait weeks for check-based transactions to be finalized.
Most check processing services accept all types of checks, increasing business to the small business owner. If a check is returned for insufficient funds, the processing service will immediately deal with the issue, and the cost of the failed transaction is passed along to the customer, rather than the business.
Another benefit of check processing services is that they provide an easy solution for providing electronic check and check-by-phone options. For those who are not the most technologically savvy business owners out there, the check processing service makes it easy to offer the convenient choices customers want without needing to learn about the technology behind the service. The business owner controls important options, such as choosing whether or not payments must be guaranteed, and setting minimum and maximum payment limits. It is also up to the business owner to decide whether or not to charge a fee per transaction, helping to reduce the cost of the check processing service. In this way, the business owner can make all the important choices, while the service is actually handled by the processing company.
Though electronic payments and credit cards may be the future of financial transactions, checking accounts are still a very important part of the financial life of the average American consumer. Being able to accept the largest variety of payments, including checks and check-by-phone payments, results in the highest profit potential for a business. The use of check processing services makes this possible, while eliminating risk for both the consumer and the business owner.
Posted in Checks on Apr 13, 2010