While advances in technology characterize today’s world, it’s still absurd that finding time to transfer funds or making payments can be utterly difficult.
With coordinating compliance, reconciling bank accounts to managing financial reports, there has never been enough time to fully carry out a transaction. At the same time, time is reduced when there are different operating systems on a given business.
Yet, paper checks still reign supreme in almost all business transactions in 2020. Apart from paper checks being here for decades, most companies still prefer them over other methods of payment. But with all technological advances and in the B2B market, why do paper checks still dominate when it comes to business transactions?
Although there are myriad benefits to using online transactions, there are equal advantages to using paper checks. It’s because of these benefits that most businesses still use paper checks in 2020. So, why are paper checks important today? Read along to find out.
As mentioned above, paper checks are not a new thing. They have been in use for decades. Not only have they been effective in completing financial transactions, but they have been used by all business niches.
Since paper checks have been around for decades, businesses are quite familiar with how they work. And since they work perfectly well, companies find no need to learn how virtual checks work!
2. It’s Universal
Contrary to common belief, many businesses that accept any form of electronic payment will accept paper checks. However, the reverse is not always true.
Since paper checks can be used globally, they tend to have deep roots with different businesses. It’s no surprise that they are being embraced widely in 2020. The best thing is that you can buy business checks online in minutes. Yes, today you don’t necessarily need to visit your bank to buy checks.
3. They are cheaper
One of the biggest reasons many businesses still use paper checks today is that it’s perceived to be cheaper than modern methods. For instance, using paper checks can be cheaper than using credit cards, depending on the nature of your business.
Remember that utility companies and different government institutions only accept credit cards on condition that there is a third party involvement. Due to this, you will be charged a fee, which is often expensive in the long run.
4. Some Businesses Simply Prefer Paper Checks
Simply put, not every business prefers the use of electronic checks. Some prefer to remain rooted in the culture of paper checks. But why? You may wonder.
Well, for starters, paper checks are considered to be safe to use. At the same time, paper checks have proven time and again to be effective in completing transactions. Some businesses simply like using paper checks instead of technologically advanced methods.
5. They Are Versatile and Dynamic
Although electronic money transfer methods are quite effective, they are less versatile. For starters, these methods solely depend on electricity to function. Therefore, whenever there are power blackouts, you can remain assured that electronic money transfer mechanisms won’t work.
Just like cash, paper checks are quite versatile. They can be used whether there is a power blackout or not.
6.They are Trackable
Unlike using debit cards, money orders, cash, or cashier’s checks, using paper checks allow you to track all your transactions. Remember that for a business to succeed, you should be able to trace your expenditure better.
The good news is that paper checks allow you to not only choose your mailing service but a tracking method of your choice as well. This way, you will be able to produce a mailing receipt whenever your payee raises any payment issues.
How to Safely Use Paper Checks
While paper checks dominate financial transactions today, it’s of utmost importance to know how to use them safely. Otherwise, you will be exposing yourself to financial identity theft.
Always Keep Record
One of the best ways to utilize a paper check is to record all your usage in a checkbook ledger. If you have a checkbook that comes with carbon paper, then ensure to use it each and every time. However, if your checkbook doesn’t come with a duplicate copy, then ensure to always record your paper check transactions on a checkbook ledger.
Keep Them Safe
Besides recording every usage of your paper check, it’s also essential to keep your paper check safe. Remember that even a single sheet of paper check can cause irrevocable damage to your finances. Therefore, always ensure to keep count of your paper checks and keep your checkbook secure whenever you are not using it.