Accepting Online Checks is Advantageous
Qualifying for a checking account is one of the easiest and first financial endeavors for developing credit. Many consumers, Americans and otherwise, acquire their first checking account in their early teenage years, as a gateway for cultivating good fiduciary judgment, often set up by parents or guardians. As more and more Americans especially are grappling with overwhelming credit card woes, consumers are turning to checks, paper and paperless, to pay for their purchases. As an online or brick and mortar retailer, the ability to process and accept checks is essential for the prosperity and growth of your business.
According to recent research, half of the shopping public in the United States are not able to qualify for a credit card. In fact, a recent survey of checking account holders in the United States showed that only one in four were in possession of a credit card that was eligible for a transaction because of available credit. Of the billions of (cashless) transactions that are made each year, nearly 60% are made with checks. The number of transactions made with checks instead of credit cards continues to grow each and every year. Retailers who desire to remain competitive owe it to themselves to be able to accept and process all forms of payment, especially those by checking account holders.
Not only is it beneficial to accept checks based upon the sheer numbers of check purchases, the processing fees administered by most electronic payment companies when processing checks is a fraction of the cost when compared to credit card processing fees. The cost to process a check invoice is 24% of the accessed cost to process a credit card purchase of an equal amount. Merchants are charged much smaller fees on check purchases so more of the purchase price assumedly goes to profit rather than in the electronic payment company’s pocket.
Most processing companies provide the merchant with added benefits when accepting checks as well. Online check processing allows for the automatic deposit of funds into your business checking account allowing for more rapid and immediate access to funds, mostly within 48 hours. A reputable processing company like Stradafee will provide your business with all the software needed to provide an electronic gateway to safely and securely process your customers’ checks. Using a process known as Automatic Check Handling (ACH), checks are validated safely and quickly, allowing you and your customers to interact with the highest amount of security and confidence. By accepting checks, you are making your business attractive to a larger amount of customers, and your profits will undoubtedly grow due to new opportunities for sales.
Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is a leading international payments company based in New York. Stradafee is a retail and merchant account provider specializing in credit card and check processing solutions. Please visit www.stradafee.com for more information.
According to recent research, half of the shopping public in the United States are not able to qualify for a credit card. In fact, a recent survey of checking account holders in the United States showed that only one in four were in possession of a credit card that was eligible for a transaction because of available credit. Of the billions of (cashless) transactions that are made each year, nearly 60% are made with checks. The number of transactions made with checks instead of credit cards continues to grow each and every year. Retailers who desire to remain competitive owe it to themselves to be able to accept and process all forms of payment, especially those by checking account holders.
Not only is it beneficial to accept checks based upon the sheer numbers of check purchases, the processing fees administered by most electronic payment companies when processing checks is a fraction of the cost when compared to credit card processing fees. The cost to process a check invoice is 24% of the accessed cost to process a credit card purchase of an equal amount. Merchants are charged much smaller fees on check purchases so more of the purchase price assumedly goes to profit rather than in the electronic payment company’s pocket.
Most processing companies provide the merchant with added benefits when accepting checks as well. Online check processing allows for the automatic deposit of funds into your business checking account allowing for more rapid and immediate access to funds, mostly within 48 hours. A reputable processing company like Stradafee will provide your business with all the software needed to provide an electronic gateway to safely and securely process your customers’ checks. Using a process known as Automatic Check Handling (ACH), checks are validated safely and quickly, allowing you and your customers to interact with the highest amount of security and confidence. By accepting checks, you are making your business attractive to a larger amount of customers, and your profits will undoubtedly grow due to new opportunities for sales.
Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is a leading international payments company based in New York. Stradafee is a retail and merchant account provider specializing in credit card and check processing solutions. Please visit www.stradafee.com for more information.
Labels: ACH, checks, electronic payments
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7:17 AM
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