Small businesses involved in nearly half of all check transactions
Small-business owners recognize the importance of checks and regularly pay with them, meaning the companies they work with must be prepared to have the latest check processing solutions available. Even though credit cards and electronic payment methods have gained traction in recent years, small businesses are still using plenty of paper checks, and their popularity doesn't appear to be diminishing.
Check use widespread among small companies
A survey conducted by the NACHA (formerly the National Automated Clearing House Association, currently known as the Electronic Payments Association) in late 2012 revealed small-business owners write a great deal of the checks seen in the United States, and are involved at some point in 46 percent of check transactions. In fact, the study showed 24 percent of check transactions are small company B2B payments, 10 percent are from consumers to small businesses and another 12 percent account for small enterprise payroll. This total accounts for 2.7 billion paper checks per year, according to the NACHA data, an enormous sum that companies partnered with small businesses need to be prepared to deal with.
Small businesses could be avoiding credit and electronic payments because of the risks they carry, but they may also be sticking with paper checks because they work well for their company's needs. Organizations that rely less on credit and electronic payments may be able to reduce the risks associated with hacking and card fraud, better protecting their financial security.
While small companies may happily continue to write out billions of checks per year, their partners need to be prepared to handle these payment methods, especially as it doesn't appear the paper check will be phased out any time soon. Companies that receive plenty of checks from small business partners can benefit from having the latest check imaging technology, which can help them process these payments more quickly and with fewer errors.
However, because small businesses accept plenty of checks from their consumers, they also need to have the capabilities to process these forms of payment more quickly and accurately. Because 12 percent of checks written in the U.S. are from consumers to small companies, they need to have the right systems in place to process checks. Without the latest technology, they may make more errors, spend more time and energy processing payments and spend less time with consumers, making a check scanner machine an essential investment.
April 24, 2013