Mailing out a check isn’t exactly complicated, right? That may be the case if you’re just paying your personal utility bill, but if your business is issuing hundreds of checks each month, the costs add up quickly. Not just the cost of paper, ink, envelopes, and stamps, but also the cost in time spent issuing the check. All things considered, most businesses pay between $4 and $20 to issue each check. Multiply that by several dozen to a few hundred (or more!), and you have a fairly sizeable number.
This is why a lot of businesses decide to use a check printing service like Check Issuing to issue their checks. They enjoy more benefits than just the cost savings; let’s examine the details below.
You can automatically generate financial statements
There are plenty of businesses (especially small businesses) that don’t use comprehensive accounting software. As such, they can’t see key aspects of their financial information by simply generating a report; they have to go back over their books and compile the information manually. A payment processing company is able to provide key financial details automatically, since they have extensive infrastructure and sophisticated software. Whether you’re trying to learn more about your monthly expenses, or you need to see which payments are currently pending, you’ll be able to quickly access the information you need with a payment processing company.
You can make better decisions
A big part of running a business is managing cash flow. In order to do that effectively, you need to know not only how much money is coming in, but how much is going out – and when everything is happening too. A payment processing company will provide the details on outgoing payments in one place, giving you up-to-date information whenever you need it. With a smart payment processing system in place, you’ll be able to make data-driven decisions that move your business forward.
Scalability is improved
Adaptability is a key part of a strong business, as we’ve seen during the pandemic. Whether you’re scaling up to take advantage of a surprise opportunity, or you’re scaling down in response to an unexpected situation, a payment processing company can adapt to suit your business’ needs.
Healthcare-related businesses can offer HIPAA-compliant payment processing
Since the 1990s, HIPAA legislation has protected a lot more than just basic patient information; it also mandates that other personal details, such as payment details, be kept confidential. In more practical terms, healthcare-related businesses have to encrypt anything to do with patient information, whether it’s their date of birth or their electronic payment details. If your business is part of the healthcare industry, a payment processing company could ensure HIPAA compliance and help build trust with clients and vendors. Without HIPAA-compliant payments, you could be opening yourself up to penalties and lawsuits; a payment processing company will ensure that this never happens.
Security is increased
At first, this might seem counterintuitive. How can handing over your payment details to a third party be more secure than handling them in-house? The truth is that payment processing companies have rigorous measures in place to earn the confidence of their customers. Since security is everything in their line of work, they devote significant resources to protecting every bit of information that comes their way. This includes their digital security system, security features for physical checks, and more. This also reduces the chances of falling victim to check fraud due to dishonest employees, which is a real risk for businesses of all kinds.
You have more payment method options
Checks may be slowly giving way to electronic payment methods, but they’re still in widespread use – several million of them are issued every day. For some businesses, this presents a dilemma: they’re transitioning to electronic payments, but they still have to use physical checks too. Some vendors may accept only checks, while others ask for customized payment options that you’ve never even heard of before. This approach to making payments can spread an accounting department thin, and increase the risk of errors. A payment processing company, on the other hand, is built for this exact scenario; they can accommodate almost any payment method, and keep errors to a minimum.
You can take advantage of specialized experts
Outsourcing is becoming an increasingly common business strategy, but this doesn’t just mean using international workers to save money on personnel costs. It also means using experts to manage specific aspects of your business, rather than taking care of them yourself. A payment processing company is a great option because they excel at what they do. Not only do they know exactly how to fulfill your payment processing needs, but they’ll also help you free up resources that can be spent on the more profitable components of your business.
Payments can be processed remotely
The COVID-19 pandemic made everyone a lot more creative when it came to doing things remotely. From attending business meetings to doing the grocery shopping, we discovered that physical contact can often be avoided. The same thing applies to payments. Businesses put more of an emphasis on electronic payments, but they didn’t always have the infrastructure to make them happen. Payment processing companies were often able to fill in the gaps; in many cases, businesses chose to continue using them even once the pandemic started winding down.
You can save money
As mentioned above, writing checks can be pricey for a business. A payment processing company will come with certain costs too, but for many businesses it’s a smart financial move to outsource check issuing. This goes for organizations of almost any size. Since payment processing companies are designed with efficiency in mind, they’ll be able to issue payments at a much lower margin – and those savings get passed onto their clients.
A “do it yourself” attitude can be helpful in business, but not always. A payment processing company may be able to save your organization time, money, and other important resources, as well as giving you access to specialized experts, more accurate financial information, and greater peace of mind.