Business checks have fallen out of use in recent years because of their inefficiency in delivering money to their respective customers and business partners. Newer generations have difficulty understanding cheques since they are worse than debit cards. Younger people view them as bulkier and inconvenient, but companies like Intercheck still utilize business checks effectively.

This article will find the various factors and reasons that affect the success of business cheques nowadays. Read along to find out more!

What Are Business Checks?

Business checks are checks that have some affiliation with business checking accounts. When you get a business checking account, it would strictly open a financial institution for your business. It is a shared account for your whole business, and it allows and serves you the transparency that you would be able to write business checks against your company’s assets.

For example, like a normal working employee, your usual salary reception would be in the form of paper checks, given every two weeks. To make use of this money, you must deposit this into an ATM account. Another way to get the money is to have it directly deposited into a bank account.

Factors Affecting the Success of Business Checks

Business checks will be one of the forgotten modes of payment in businesses due to them not catching up to their other competitors.

Here are some of the factors that affect the success of your business checks:

1. Processing Time

Time and efficiency are two of the most important factors for the success of business checks. Business checks are usually slower than debit and credit cards, so you can assure that your checks will fail if they are slow.

2. Place of Redemption

Unlike debit and credit cards, business checks can only be redeemed by going to your business’s financial institution in order to claim your salary. The availability of the bank in your area would determine if your business check could be claimed easily or not.


3. Speed And Amount Of Employees

The number of employees would be important in determining if your business checks would be completed quickly. Business checks need several signatures in order to be considered legitimate and accepted by the financial institution.

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Pros And Cons Of Business Checks

With business checks seeming too old-school for newer generations, you’ll want to look at their pros and cons to find out where their shortcomings lie and why they are there.

Business Check Pros

If you gave your money out to your employees, it would be risky. Once that cash leaves your grasp, it is for everyone else to use. With business checks, you need signatures and IDs to be claimed by whoever has your check.

Absence of Convenience Fees. Businesses use electronic payments as an excuse to charge convenience fees. If you pay your employees with a physical business check, you would be saving costs. Stamps are usually less than half a dollar, compared to a convenience fee of about $8.

Business Check Cons

Processing time. Compared to cash, credit and smartphone payments are like snails in processing transactions and don’t post quickly to your account. With checks, the money does not leave your account until the person you gave it to withdraws it. This could lead to miscalculations on your remaining balance.

Paying with checks greatly benefits those who perform a respectable degree of discipline and are street smart. As long as you know how to protect your account from fraud and always know how much you can check out. Additionally, checks can be a good alternative rather than using credit cards.

Conclusion

Business checks are a useful tool in handing out money to your employees safely. Unfortunately, they have fallen out of trend since speed and efficiency greatly rule this technological age that we are in. Hopefully, this article provides you with enough information to clarify the different factors influencing your company’s success with business checks.

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