With so many options out there for making our payments consumers have more choices than ever. It is easy to assume that paying for items with a check has become something of the past. While the check payment has evolved along with new technology, it is still as strong as ever a form of payment. And not just with your grandma.
Whether writing physically on a paper check or using an Echeck, it is still a form of paying with “check” and considered different than all other forms of payment including ACH. When a consumer uses an Echeck it is processed the same way that a paper check is. The routing number is still used to make sure the transaction is going to the correct bank as well as the account number which makes sure the money is withdrawn from the correct account and once the transaction is complete the check is considered “cashed”. And these days the majority of paper checks written at retail establishments are turned into “Echeck transactions” at the Point of Sale. Instead of the owner saving all checks and making a trip to the bank to deposit them, they are entered into the POS system and transactions are transmitted to the bank electronically.
Here we are going to take a look at some real numbers for just how popular the check payment still really is with your customers and some bonuses for why you should consider check and Echeck acceptance an integral part of your business.
Just how popular are checks in the U.S.?
Recent studies have shown that there are as many as 32 million U.S. consumers who have checking accounts but still do not own any type of credit or debit card. Without either of these card types you can be sure that they are paying for their goods with a check or cash.
In fact, the Federal reserve recently reported over $26 trillion in checks being paid.
If you think that people spend more when using their credit card you’d be only half right. While studies do show that people spend more with a credit card over cash, it also shows that they spend even more when writing a check. Average check is $150 where the average credit card swipe is only $50, that’s 3 times the spending power!
Accepting checks gives your customers more flexibility. Many people still live paycheck to paycheck and while they can afford what they need sometimes they just need a little float, right? Check use increases by 40% right before payday showing that people are using checks to get through till their auto deposit clears.
Checks aren’t free!…but they are cheap. A lot of business owners and consumers alike have the notion that it doesn’t cost anything to write a check and alternately by accepting echecks it would cut into their profits too much. The truth of the matter is that it does cost to process a check. Even the old fashioned hand written type. But it is more cost efficient than other forms of payments. A business can pay as little as $0.25 per transaction for small amounts, and a maximum of $2.50 for up to $25,000 – that equates to about 0.01%! NACHA has determined that the true costs involved with processing a paper check by all entities is about $8!
Buyers feel more confident in the safety of checks because they believe they are much less susceptible to fraud than using their credit card. But as merchants you can also benefit from the safety of check acceptance, even electronic checks simply due to the fact that fraud is detected so much more quickly than with a credit card transaction.
It is always important to give your customers multiple options for making a payment and Echeck acceptance also helps merchants to avoid missing out on potential sales when consumers just don’t have any cash on them.
Smart business owners are already making sure that eCheck and check acceptance is an integral part of their business model. It is so easy and efficient when you are armed with the correct payment platform to be able to accept eCheck, ACH in addition to all of the credit card types and debit. All in one, efficient system you will accept all payments, be able to consolidate payments and settlements and view them all in one place. As an added bonus, electronic checks process 2 times faster and command smaller processing fees than other traditional payment methods.
Check payments and acceptance is no longer limited to paper checks. And because technology is making it more secure than ever, merchants can choose to accept Echecks at the point-of-sale (POS), through their online store, as well as through mobile devices.
So, with so many people loving to write checks, merchant’s ability to accept echecks and turn any paper into an electronic check, along with 3 times the spending power for the customer and lower costs for the merchant, let the paper fly!
There is no shortage of businesses that could benefit from accepting Echecks in their business:
- Tech Support
- Ecommerce of any type
- Storage facilities
- Subscription services and clubs
- Athletic facilities/gyms
- Government offices
- Utility companies
With the industry’s leading eCheck acceptance program, Bankcard Brokers offers the best solution for your check acceptance needs. Our program will seamlessly integrate with your retail or e commerce business with no shortage of extra features such as Check Verification, Check guarantee, NSF Check collection programs, and flexible payment gateways that are sure to give your business the advantage. Give one of our ETA- Certified Payments Professionals today to find out how accepting Echecks can help to boost your business.