Why are companies still using paper checks?
Every year, digital payments are becoming more and more popular, both in payments for goods and services by individuals and between businesses. All indications are that the use of paper checks should have long since become a thing of the past. But here’s the paradox, many companies still use them. Why are they still relevant? In this article, we will try to understand why companies still use paper checks.
The main reasons for using paper checks
You can argue endlessly about why paper checks are still a thing of the past, but one thing is important to understand, that they have some important advantages that keep companies from giving up using paper checks.
Here are the reasons:
- The comment of Electronic Check Clearing House President David Walker: “Today’s payment systems are poised to provide companies with tremendous opportunities, but the problem is that there is no payment system that fits absolutely everyone, for all scenarios. In turn, paper checks have the advantage of versatility. If a company has an open account, in which case it will be quite easy for it to initiate payment and write a paper check to another firm. Moreover, this process has become so customary for many companies that they are simply unable to refuse it. In addition, the use of paper checks is justified for sudden operations that need to be carried out on the same day. Examples of such transactions are cash on delivery, payment for parcel delivery, etc.”
- Another reason companies do not give up this method of payment is that it’s conservative. They are so used to using paper checks that they simply don’t want to change anything, even if they are offered a payment option that significantly reduces costs and labor costs. The professionals at these companies don’t want to introduce anything new into their work or learn anything. They know perfectly well how paper checks work, and they are quite happy with that.
- The next reason for the still high popularity of paper checks is that all firms that successfully accept electronic payments can also accept paper checks. It means that regardless of your choice of payment method, the transaction will eventually be completed. But you’d be surprised to learn that there are still companies in our world that only accept paper checks and don’t accept electronic payments. Well, it’s about time they started doing that to stay competitive and better serve their customers.
- But the most surprising reason companies use paper checks instead of electronic payments is that they simply don’t believe in all the benefits electronic payments will provide them. They know that it takes so long to pay with a paper check, and they can’t believe that a payment can be made in a few seconds. The convenience that electronic payment guarantees seems like something fantastic to such companies.
Does your company also use paper checks? Of course, you can continue to use them, but it is important to understand that for your company to operate as efficiently as possible, you need to keep up with the times by implementing the most high-tech processes and innovations.
According to some projections, the complete elimination of paper checks will be implemented in 2026. Moreover, it is not surprising, because while there are some advantages, this type of payment still has a lot of disadvantages, taking away a lot of time from companies and being very expensive.