4 thoughts on “Checks Ceding Ground to Electronic Payments

  1. I work as a small business consultant and I found this article rather interesting. With the current economic climate some of the smaller companies or even start-ups can’t even get a business bank account to change from paper to electronic.

    When working with small businesses, I try to find for them alternatives that could help them get the best possible solution. Since the economic turmoil I have been increasingly recommending to small business owners to go prepaid. There are a vast amount of companies out there now such as Cashplus who offer business bank accounts in a prepaid card form.

    Having this alternative will give small businesses some foot to stand on – whilst the bigger firms can simply switch electronic.

    Thanks

    Jeff

    • Great comment Jeff. I work for a payments company that focuses on eCheck payments for small businesses. It’s amazing how left out this segment is left out.

  2. I was interested in the article but now even more intrigued by the comments.

    As a Treasurer, former banker and consultant, and part owner of a very small business (revenue about $10,000 annually) myself, I have neither personally experienced nor witnessed issues getting business accounts for even the smallest of businesses. That is, of course, unless the businesses (or its principals) were shady, illegal, or otherwise disreputable.

    Our business had a business checking account within 15 minutes of walking into our branch (with the proper documentation, including articles and EIN) and was sending and receiving ACH payments and sending online invoices within a week. I would say half of the revenue is received by electronic payment and maybe 80% of expenses paid similarly.

    The company for which I am Treasurer is a large one (multi-billion) and we are struggling far more to convert to electronic payments (both incoming and outgoing). We receive less than 50% of incoming payments electronically, despite a nifty online invoicing/payment system, and outgoing is even less. Until we start financially penalizing incoming and outgoing paper checks, I think change will be frustratingly slow going. Doing so for outgoing payments makes more sense than incoming though. I have a theoretical problem with making it harder, even if just perception, for a customer to pay you.

  3. Kevin,
    I agree it has been more complicated to move midsize and enterprise companies to electronic payments, but that has changed drastically. Until recently banks have been the traditional payment partner, but they are not likely to be the most effective, least costly, or easiest to do business with for payments. I help clients outsource payments with little effort and a huge return in rebates. I’ll be glad to point you in the right direction without a fee.
    Good luck.
    Jim

Discuss

Your email address will not be published. Required fields are marked *