B2B – why adopt electronic checks over paper ones
Patrick Smyth Managing Director at iSmartCheck http://www.ismartcheck.com
Who still takes paper checks on a COD basis? A lot of businesses do. And we want to help them streamline.
Recently we had the opportunity to work with a new client who still took paper checks as the majority of payments for his business. This particular client had been doing this for years with great success, and was hesitant to change. More importantly, his customers were used to writing checks the old fashioned way and when polled, a large sample replied that security was a great concern.
Here are some of the reasons that we gave our client for moving from paper to our Check 21 Electronic System.
1. Cash Flow – our client was able to increase his cash flow and receive funds the very next morning into his account versus three to five days later with his old method of collecting checks and depositing them into his bank.
2. Instant review and control of funds before shipping – knowing where his funds were at all times allows this customer to ship with the knowledge that he won’t have to deal with a check bouncing days after the product has been received.
3. Real Time reporting – our client knows has access to real time reports instead of having to manual enter data as checks are processed at the bank in paper for.
4. Reduced NSF and Collections – Knowing that funds are available before shipping means our client will enjoy reduced chargebacks. And Check 21 is unlike ACH where the customer simply makes a call and reverses a charge. With our system, the onus is on the check writer to prove that a check issued by them was not legitimately done so.
5. Better Security – There is a much lower probability of electronic fraud as paper checks provide more accessible information such as bank, signature, address and routing information; signature can be replicated via digital imaging. Our system works directly with our banking partners and is transmitted over secure, encrypted software.
6. More efficient – as our client moves into the digital world of electronic checks, we expect the migration for new channels of business to be an easy one as more and more end users move into the digital checking world.
7. Sustainability – while there is a proactive reduction of paper check usage from financial institutions, banks and credit unions for many reasons, we like to point out that not using paper helps the environment.
The second piece of the equation was convincing our client that his customers would be ready to adopt this format in favor of one they had been using for years. We highlighted some of the key benefits.
1. No cost to customer for E-Check – that’s right. There is no cost to the client’s customers. In fact, they save money because the cost of writing an electronic check is free.
2. Greater level of security vs. traditional paper check – Traditional financial instruments like paper checks are now as or more susceptible to scams and fraud than the online methods and most paper checks can be processed even without verification. And, there is a lower probability of fraud as paper checks provide more accessible information such as bank, signature, address and routing information.
3. More efficient – more consumers and business conduct transactions online now giving the control and ability to track and manage process. And who needs to take time out from an important sale to go write a check when a delivery is made?
4. Reduce costs – less usage of paper checks means that our client’s customers need to spend less time worrying about getting cashier’s checks or reconciling paper checks at the end of the month when they receive their statements. With our system, an image of the check they wrote with a full descriptor appears on their electronic bank statement online.
5. Sustainability – no paper flow is good for everyone, especially Mother Nature
Our client was so moved by our ability to change his business for the better that he has already referred us to new clients. With our system, you will be sure to get the following benefits:
• Improve Cash Flow
• Modernize Reporting
• Lower NSF and Charges
• Better Security
• Better Controls
Please visit us at www.ismartcheck.com for more information and feel free to call us anytime for an evaluation of your business!
About
iSmartCheck™ is an electronic check processor that provides a better alternative to expensive credit card charges. Our conversion rates are better and our fees are lower. Bottom line is that you will make more money. Our Check 21 solution offers the fastest, safest and most cost effective way to process electronic payments from an expanding customer base, and is experiencing rapid growth in the growing eCommerce and Payments industries.