Businesses, consumers still prefer to make payments with paper checks
Despite the growth of the mobile payment processing industry, many businesses and consumers continue to conduct the majority of their transactions with paper checks. As a result, the owners of small and medium-sized enterprises may want to consider investing in advanced check processing machines to eliminate the overhead costs associated with many backroom tasks.
According to a recent report from the Washington, D.C.-based Association for Financial Professionals, a large number of U.S. organizations prefer to use paper checks when purchasing products and services in the business-to-business industry. In fact, Jim Kaitz, the president and CEO of the AFP, said the average company makes at least half of its total B2B payments in checks.
Businesses that operate exclusively in the consumer-end markets have experienced similar trends as well. The cloud-based technology services provider Kony explained on its blog that recent developments in electronic transaction processing technology haven't exactly caught on as many industry experts had initially anticipated. Not only are shoppers reluctant to adapt to new mobile technologies, but many organizations simply find these tools to be overly disruptive on bottom line revenue numbers. A report from the credit reporting agency FedChex also said many new mobile payment processing services have unforeseen security risks that businesses find unappealing and simply not worth the upfront investment.
High-quality check scanners may be a much more effective tool for businesses, as both consumers and B2B organizations often prefer to make purchases with paper checks. Rather than creating new problems, these tools make it easier for employees to deposit large amounts of payments in as little time as possible. Companies can then utilize their newfound free time to improve other important operational tasks or simply enjoy the reduction in overhead costs.
November 25, 2013