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The inconvenience of using paper checks is contributing to their decline. Check usage is being replaced by more convenient payment methods such as eCheck, debit, and credit cards. While traditional check use is decreasing, massive amounts of money are still transacted with paper checks. According to a Federal Reserve Payments Study conducted in 2016, checks still account for over $26 trillion worth of transactions every year. Despite all the hassle associated with using paper checks, many people still choose it as their preferred form of payment.
Fortunately, there are more efficient alternatives to traditional paper checks. Echecks are safer and more convenient than traditional checks, giving businesses a secure online payment solution for accepting money from customers. Learning how to accept eChecks online will help businesses avoid all the problems associated with paper checks, giving you a more cost-effective solution to processing payments.
The Problem With Traditional Checks
Despite its many advantages over modern forms of payment, traditional check processing can be a burden for both payers and payees. Unlike safe eChecks, paper checks are more susceptible to fraud and are generally more time-consuming to process. The most common issues people encounter with traditional check processing include:
Exposure of Sensitive Data
Most traditional checks contain sensitive information such as the customer’s name, address, account number, routing number, and financial institution. If paper checks fall into the wrong hands, the owner can get into a lot of trouble. That sensitive personal information can be used by criminals to steal money from your bank account, leading to considerable financial damage. Learning how to accept checks online will prevent your customers’ sensitive information from falling into the wrong hands.
Long Handling Time
Paper check handling is more time-consuming than safe eChecks for both customers and businesses. Customers have to write the check, place it in an envelope, stamp it, and mail it to the recipient. Businesses have to wait for weeks to receive the check in the mail. Receiving the check does not guarantee payment. The check can bounce if the payer does not have sufficient funds in their account, wasting the business’s time. Paper check handling is a very inefficient process that can frustrate both merchants and customers.
Higher Incidence of Fraud
Paper checks are more prone to fraud than safe eChecks, making them riskier to work with. Paper checks can be stolen from mailboxes, have the recipient’s name and amount to be paid altered, and cashed or deposited into the thief’s bank account. The account holder itself may also commit check fraud. Many fraudsters write checks without having sufficient funds in their account to cover the payment, inflicting financial damage on the recipient. Learning how to accept checks online will protect your customers and business from the risk of fraud.
Safe Echecks: A Quicker and More Secure Payment Solution
As we discussed above, traditional checks can be a hassle and create a lot of issues for payers and payees. Thankfully, modern technology has made alternative payment solutions like SeamlessChex possible to help businesses avoid many of the problems associated with traditional paper checks. Seamless Chex allows e-commerce merchants to accept secure electronic check payments from customers, improving business efficiency and cash flow.
The benefits of using SeamlessChex safe eCheck payment solution includes:
Enhanced Information Privacy
Paper checks provide sensitive financial information to anyone that gets access to it, putting the account holder at risk for monetary loss. With Seamless Chex’s Paynote, digital checks can be sent and requested without the need for address, routing, or account numbers. The recipient’s name, email, and the amount to be paid are the only information needed to make online payments. Learning how to accept checks online with Paynote ensures customer data privacy, promoting consumer trust in your brand.
Quick Payment Processing
It can take hours or even days for payers to write and mail a check to a recipient. The recipient should wait for an average of two weeks to receive the check in the mail. Paper check processing is time-consuming and inefficient for both senders and recipients. With Paynote’s safe eChecks, you can send and receive digital checks in an instant and have the money deposited in your account by the next day.
Reduced Check Fraud
Unlike paper checks, sending eChecks online prevents them from falling into the wrong hands, eliminating the risk of theft and monetary loss. Paynote also has an instant verification system that validates bank information and account balance in real-time, reducing the risk of bounced checks due to insufficient funds.
Sign Up for Safe Echecks to Improve Business Efficiency
Echecks are a more secure and convenient alternative to paper checks, helping you process online payments safely and quickly. Learning how to accept checks online can provide a more cost-effective solution to credit card processing, helping merchants save more money and improve business profits.
If you need electronic check processing for your e-commerce business, we can help. Seamless Chex provides fast and secure online check processing to improve business efficiency. Contact us to learn more about safe eChecks or sign up now to start sending and receiving payments instantly.