Checks are a traditional payment method that all businesses should consider. In this article we list five reasons why accepting checks is a good option for most businesses. Whether you are an auto dealership, a tile company, or a department store you can benefit from accepting checks in your business. These are the most important reasons we have found.
1. The lowest cost payment method
With checks you can save a considerable amount of money over credit cards or any other form of payment. Most credit cards charge between 1.5 and 4 percent to merchants. This becomes most apparent when accepting large payments. Checks are the lowest cost payment method available.
2. Wider customer reach
Expand your audience by accepting checks as an additional payment method appealing to more traditional customers. Older customers and many businesses are accustomed to paying with checks.
3. Accomodate large payments
Checks are only limited by the funds available in the account. As mentioned earlier the cost is much lower as you will only pay a small fee if you use a check guarantee service. Most credit card services have limits that restrict larger payments. In many cases customers often combine both checks and credit cards when making large payments like down payments on a car or a home.
4. support B2B payments
Checks are very popular for business to business(B2B) transactions. Studies show that checks are still a preferred method for B2B payments. Many contractors and service providers accept checks to avoid credit card fees.
5. Record keeping and controlling cash flow
Checks provide a paper trail for the customer and the merchant as well. The check itself serves as a type of receipt. The check book provides a central point for record keeping. The traceability of checks is a safety feature for B2B and retail customers alike.
Why not expand your payment options?
Accepting checks is a traditional payment option that will save you a significant amount of money because of the much lower processing fees. Merchants can expand their payment options to a wider customer base including older people and older businesses which prefer checks. Accepting larger payments is simplified as checks are only limited by the funds available and can be combined with other payment methods as well. Checks being a preferred payment method for B2B will help your business gain trust in the industry. Accepting checks will enhance and simplify record keeping for both B2B and customer transactions. In addition, with a check guarantee and verification service like US Check Services you can accept checks with confidence and worry free. Learn more about us and how it works.