What you’ll learn
- Why checks are an unreliable payment method
- Better payment options for your business
- How Hopscotch makes sending & receiving payments easy
Most small business owners and freelancers accept all forms of payment because they want to make paying for their services and products easy. But some payment methods are inconvenient, expensive, and downright bad for business. The biggest culprit? Paper checks!
Even though checks were once a popular form of payment in business, their usage has steadily declined over the years. In fact, according to a study by the Federal Reserve, check payments have decreased by more than 50% since the year 2000. If your business is still accepting paper checks, here are the top reasons to stop.
1. Checks are expensive
If you’re still accepting checks as payments, you’re likely paying more processing fees than you would for other types of payments.
Many banks charge businesses a fee for each check that they deposit. Not only that, but if a customer writes a check with insufficient funds, you may be responsible for any bounce fees that transaction incurs.
2. Checks are slow
If you need your funds right away, check payments can pose a serious threat to your cash flow.
The money will likely take days to reach your account. You may even have to wait for the customer to mail the payment to you.
With credit cards or other digital B2B payments, you can often send and receive money on the same day. With Hopscotch, payments are instant and fee-free.
3. Checks can be inaccurate
Checks are processed manually—they are written, delivered, and deposited by human hands, which means there is a chance for human error end-to-end.
Your customers might make the check out to the wrong party or input the wrong amount. They may forget to sign the check. Or they might not send it on time.
If any of these things happen, your business will spend time tracking down the customer and sorting out the mistake.
4. Checks aren’t as secure as they once were
Checks used to be a secure form of payment. Today, they can be easily used in fraudulent transactions.
According to the American Bankers Association, check fraud cost businesses and financial institutions $15.1 billion in 2018 alone. The problem is likely to get worse as it becomes easier for criminals to create fake checks with sophisticated software.
Fraud isn’t the only security risk you have to fret about. One of the other disadvantages of checks is the risk of physical damage. The check might get torn or ripped after you receive it, making it invalid for deposit.
The best option for payments
If you’re looking for better business transaction options, consider digital payments.
- Secure processing: When you pay and get paid via Hopscotch, you can be confident that your customer’s information is safe. All transactions are encrypted and processed through a secure network.
- Fast funding: With Hopscotch, you don’t have to wait days or weeks to receive your payment. The money gets transferred along the same rails as ACH payments and added to your Hopscotch balance as soon as your customer pays you.
- Free processing: Many payment processors charge a fee for every transaction. With Hopscotch, you make payments instantly with zero fees.
- Easy for your customers: Hopscotch is better for you and for your customers—they don’t have to have an account to send and receive payments on our platform.
- Cash flow tools: With Hopscotch Flow you can unlock revenue from outstanding invoices in just a few clicks. Control your cash flow, stay flexible, and grow your business.
Make sending & accepting payments a breeze with Hopscotch
Ready to say goodbye to paper checks? Hopscotch is the easiest way to send and receive payments. We offer instant, fee-free funding for all US-based businesses. Sign up for a free account and start transacting in just a few minutes.