Computer checks are often overlooked as a way to accept payments from clients. However, they can be ideal for small businesses to take remissions from customers without worrying about collection lags, fraud, or other drawbacks of cash transactions.
What is a Computer Check?
A computer check is essentially a digital bank draft. It is software sent to your financial institution, where it is converted into a true statement made out to the specified person(s). Similar to regular checks, you can deposit them into your bank account(s). Here is an outline of the top three reasons to use computer checks.
1. Quick and Convenient
One of the main advantages of an electronic draft is that they are processed and deposited into your treasury account faster than paper checks. In many cases, cashier’s checks can take days or weeks to be deposited, if they are received at all. Nonetheless, online payment companies only take a few hours to process electronic payments.
This payment method benefits businesses that often receive small and frequent customer remittances. For example, if a small enterprise accepts settlements from several clients each month, who are all paying with a credit card, it can take up to 5 days for the money to reach the business. However, an electronic check can take a shorter time.
Computer checks are timely because you can generate a new bill once you set up a system in just a few minutes. Their quick and convenient nature makes them ideal for small businesses that have to run their operations quickly and efficiently. Consequently, clients are satisfied with their purchases and will likely return to make more purchases.
2. They are Secure
Despite credit card fraud being one of the biggest concerns for consumers, it is also an issue for businesses. Electronic checks have offered a solution to this problem. They are considered a more secure payment method than credit cards because they are easy to reconcile and track. For example, you can print a PDF of your computer check for easy identification and tracking. It makes it easy to spot fraudulent activities, such as unauthorized transactions.
3. Easy to Use
These checks are easy to use, customize and integrate. You can import the payment information from your customers, such as their names and addresses, or enter your information. They are easy to combine with your accounting system. Instead of printing them at a check printing company, they can also be printed out from your computer. This feature can be beneficial for businesses that have multiple locations.
Small enterprises should consider using electronic draft payment methods. They are ideal for accepting payments from customers. They are processed and deposited into your bank account much faster, and there is no risk of fraud. Credit card payments are usually slower and can be costly. Computer checks can be printed and handled at any computer with a scanner, eliminating the need for expensive check-printing services. These factors make computer checks an excellent choice for your small business.