Electronic Payments vs. The Traditional Check
March 29, 2012
For most companies, making payments and taking payments electronically provides a number of cost savings. The cost per transaction is lower because it eliminates the writing or opening of paper checks, trips to the financial institution, delays in postal mail and other transactional costs.
The Federal Reserve reports that transactions with paper checks continue to decrease while the number of electronic payments is on the rise.
At Home Federal Bank it’s our goal to help your business prosper. Sometimes it’s helpful to share how other successful businesses use electronic services to improve profitability.
One such service is ACH (Automated Clearing House). Transactions can be scheduled for the exact day they are to be paid which allows your business to accurately manage cash flow. The payees benefit by receiving funds into their account without a trip to the bank to make a deposit.
If your business is able to earn a discount for paying invoices within a specified time frame, an electronic form of payment ensures its prompt arrival. Payments can be sent using pre-arranged templates so accuracy is consistent. Some businesses process one payment at a time and others process several transactions at once. You decide what’s best for your business. Funds can be sent or received as quickly as the next business day. Plus no envelope or postage is needed!
Ask your Home Federal banker for more information on how your business can utilize electronic payments to increase productivity and reduce costs.
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