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Why Businesses Should Seriously Consider Electronic Payment Methods Instead of Cheques

Why Businesses Should Seriously Consider Electronic Payment Methods instead of Cheques

While there are various methods of payment available nowadays, some companies may still be comfortable issuing cheques as practiced since many years ago till today. Although, it will still be possible for companies to issue cheques for now, here are some reasons why companies may want to start considering alternative payment methods such as electronic or digital payment methods which may actually benefit both parties in a transaction.

Cheque Clearance Fees Chargeable

You may already have heard that most banks will start or have already started charging clearance fees which may be in the range of $0.75 per cheque clearance or so. While the amount of clearance fees may not seem significant, the sum of many transactions may add up and may increase the overall costs for the company especially if the company has a significant amount of transactions. Why pay more when you can pay less by just opting for alternative payment methods?

More Electronic Payment Methods

There are now just so many types of payment methods such as bank transfer, paynow corporate or GIRO transfer nowadays. These methods are also more direct and can actually save more time and effort. Although there may also be a nominal fee being charged for these alternative payment methods as well as some initial set up to be done at the start, it may still be lower and more worth it as compared to the clearance fees payable for cheques.

Win-win for All Parties

With less hassle, less work, lower transaction fees and shorter waiting time for customers, it may be a win-win for both the payer and the payee since there is no need to prepare, sign and post the cheques out. Furthermore, postage fees will also apply if you are mailing the cheques out and in the process you may also need to prepare the envelope and stamps for postage of cheques. By opting for electronic or digital payment methods other than cheques, it may mean less admin cost and also less overall time spent for processing of payments.

Especially during trying times, cost control from various areas may be essential for some companies. There may also be various other ways to save on company spending such as savings from warehouse rental cost. Some companies may also want to look into saving on office printing cost to lower the company’s overall expenditure.