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Check payments important to small businesses

Remote deposit capture technology has become more important for companies in recent years, especially as few smaller businesses have the resources necessary to constantly ask employees to drive to the bank and deposit checks. With the enormous number of enterprises that pay bills by check, it is essential for firms that rely on B2B sales to invest in the latest systems.

Most business owners see plenty of check payments
According to a new poll from Ipsos, most small-business owners still see at least some check payments, indicating this form of payment isn't declining as quickly as many imagined. In fact, 88 percent of survey respondents said they still receive check payments. Almost half (45 percent) said their clients pay by check most frequently, while only 30 percent said they are more commonly paid with credit cards. Forty-eight percent of respondents claimed the majority of their customers complete transactions with checks, as opposed to cash or credit cards.

Smaller operations tend to see a greater number of check payments, according to the survey results. Of small businesses with just one employee, 54 percent report receiving check payments more frequently than other transactions, while 48 percent of those with two to 10 workers said the same. With the number of small companies opening across the country, this highlights the need for entrepreneurs to invest in technology that can help them better manage customer payments.

Even though some management teams reported seeing fewer checks in recent years, this isn't the case for all small-business owners. Thirty-nine percent claimed they haven't experienced a drop in the number of check payments at all, while 18 percent have actually seen an increase in the number they receive. Those who reported a jump in the amount of customers that pay with checks were likely to have more than 10 employees and be located in the Northeast, according to the poll.

The importance of RDC
As businesses report the number of checks they receive is holding steady - or in some instances increasing - company leaders need to make decisions that will make payment processing more effective. By looking into the latest check scanner, a business owner can more quickly deposit funds and not worry about sending employees to the bank daily. This allows workers to spend more time assisting customers, which can boost the company's potential for long-term success.

July 26, 2013