Depending on the types of businesses and customers you are talking to, check payments are either a huge hassle for little gain, or they are the lifeblood of certain payment programs. However, there are still lots of business types that benefit from check payments.
Areas Where Checks Are Still a Dominant Payment Method
Many members of the Millennial and Gen Z generations are much more accustomed to using cash, cards, apps, and online baking to make payments, whether those payments are for groceries, rent, utilities, or pet-sitting services. Personal checks are not a popular payment method anymore, but that doesn’t mean the power of checks has disappeared entirely. Here are some areas where check payments still prevail.
The first place checks are still used frequently is business-to-business payments. Many B2B transactions are carried out using checks for a variety of reasons.
First, they can be canceled fairly easily if an error is found. Also, checks provide an easy-to-follow record of transactions. You know when the money was sent based on the check number and other details, and you have physical or electronic proof of that payment, should other issues arise.
In a similar vein, check payments are easier for B2B transactions because dealing in large amounts of cash is dangerous and can often make people uncomfortable. With a check, businesses can mail a check for several thousand dollars without raising much suspicion. And if the check is stolen or other fraud takes place, the check can be easily voided.
Similarly, consumers are still sending checks to pay for a business’s products or services, especially if online or card-based payment options are not available for the business.
This is especially true for smaller businesses and local shops. Many payment processing systems are pricey. Small businesses struggle to recoup the expenses associated with traditional payment systems in an efficient manner that doesn’t take money away from their business profits. This can happen through the expensive setup and support fees or app-based transaction fees like those associated with sites like Etsy, for example.
There are still a number of peer-to-peer payments made via check as well. The reasons for this are similar to the other areas in which people are still processing check payments – it’s safer than cash, easy to cancel, and there are no extra or hidden fees associated with this payment method.
Businesses That Benefit from Check Payment Processing
Of course, every business type is different. For some businesses, checks are a necessity while others are happy to only see an occasional check come through their accounting department or staff.
Here are some more types of businesses that benefit from echeck and check payment processing.
Membership and subscription-based businesses, especially online businesses. Fitness businesses and apps, gyms, yoga studios, and other businesses with monthly fees and payments. This could also include home, health, and pet insurance businesses.
Similarly, rental businesses are another type that still sees a lot of checks and check payments, including real estate and property management organizations, storage rental businesses, and stores that offer rental options for furniture appliances, and electronics.
Checks and check payments are also frequently used by businesses that take or make payments in large sums as we mentioned earlier in this article. These payments could be things like school tuition, maintenance or service amounts, and other large expenses.
Another of the business types that can benefit from check payment processing is Money Service Businesses. Check cashing accounts are still important for B2B and B2C transactions.
And lastly, echecks and check payment processing can be a great addition for established and growing businesses to offer more diverse payment options, and thus, capture more customers and clients.
Upgrade Your Check Payments and More with ReliaFund
Many people still pay by check, and that means your business needs a safe and reliable way to conduct your check payment processing duties.
ReliaFund’s payment processing services include electronic check services and make it easy to process checks along with many other forms of payment by offering:
- Full integration into our payment processing platform
- Lower transaction fees compared to credit cards
- Efficient and faster options than waiting for checks to arrive by mail
Contact us today to learn more.