You might have come across a check in the recent past. Checks have for an extended period, provided a convenient alternative to cash and credit cards. Believe it or not, most small business owners do not accept debit or credit cards out there.
This is the case for most educational institutions and state or local governments. If they accept, they will charge you a fee to defray the costs for accepting and processing them. Why? Because card payments processing companies such as Visa and MasterCard usually charge them as well.
As such, paper checks became the best face-value financial instrument that they can accept. The best thing is that you can order checks online. Visiting the internet and looking for a reputable supplier is the easiest way to order paper checks online. There are many reasons why you should consider ordering paper checks. These include:
1. Checks are Familiar
The young generation has embraced electronic banking today. However, this has not hindered the use of paper checks to conduct business. Most businesses still rely on checks to perform different transactions.
Most companies set up their financial systems several years ago. Changing their infrastructure and the policies might take time.
Fortunately, checks usually contain more information than electronic payments. Besides, it is very easy to match up payments and invoices using checks. If you check keenly, you will realize that most people still use paper checks to make large purchases such as a mortgage, paying rent, and so on.
2. Checks are Universal
It is worth noting that businesses that accept e-payments also accept paper checks as well. However, some businesses only accept checks. As such, there is no guarantee that your suppliers upstream and downstream will accept paperless invoicing and payment. If you want to avoid inconvenience, having a paper check at hand is, therefore, necessary as they are universal.
3. Better Cash Flow
No business would like to find itself in a cash crunch situation. This explains why most companies aim at maximizing their cash flow. Paper checks have proved to be very useful in helping businesses achieve this goal.
Most business owners are willing to wait for their checks to be printed for a day or two to prevent cash crunch situations. This allows their money to remain in their bank for several days, and still earn some interest. For individuals, the extra few days between paying and clearing a bill is essential if the money involved is tight.
4. You Can Pay During Utility Outages
Most stores usually rely on electronic equipment to process debit and credit transactions. There are instances when the power or phone systems are down. As such, a check can be beneficial in making payments. It can be the only way to make a particular purchase.
Here, checks allow you to buy food and other necessary supplies you need when the ATMs are out of service.
5. Paper Checks are Traceable
Paper checks usually offer a level of traceability that you cannot get from money orders, automatic bill pay system, or even cash. Once you main someone a paper check, you can be able to select the type of mail service that you want to use as well as the tracking method.
This is very critical for insurance premiums or taxes. If there is any dispute over your payment, you will be able to produce your mailing receipt and even provide a copy of your canceled check.
Checks are affordable
6. Perception
For most people, electronic payments are too good to be true. There are instances when fraud has occurred, resulting in losses. As such, most businesses still do not trust the internet. Cases of fraud are likely to happen from time to time.
Hackers are known to break into electronic systems and steal valuable information such as bank accounts and social security numbers. Most businesses usually choose to buy paper checks online to mitigate this problem.
7. Checks are Relatively Cheap than money orders
Some banks usually charge about $5 for a money order. If you choose to use a postal order, you might have to dig deeper into your pocket. This is usually the case if it is issued in international currency.
Non-bank money order usually costs less but their issuers might charge a higher tracing or replacement fees if the money order is lost or destroyed. With a paper check, you will not have to worry about these charges and fees. This is because paper checks are relatively cheap.
