We recently talked about the use of credit cards and whether or not you should encourage it. We of course say yes. There is an expense associated with processing credit cards, but for us this is kind of like insurance. How so? There are issues with checks.
What are the issues?
- Check Fraud has grown substantially in the last few years. According to recent a survey, the number of businesses that have experienced check fraud is now up to 75 percent.
- Checks are Expensive. Yes I know that it's just a piece of paper... The real issue is the same issue as sending invoices through the mail. There's envelopes, stamps, people time, and, more importantly, the time spent waiting on that check (keeping you from using that money within the business).
- Credit Card Transactions can be easily integrated into many different kinds of systems. On the other hand, checks are nowhere near as easy to integrate and at a bare minimum must be manually processed.
What to remember: Credit cards come with more protection and are a faster, more efficient way to make and receive payments.