Top 5 Reasons Why Your Business Should Take Checks as Payment
Consider the following scenarios: perhaps you’re opening up a new business or you’re updating your current point-of-sale systems. Traditionally you’ve taken credit cards and debit cards, and as always, cash is king, but what about other forms of payment?
Specifically, what about checks?
If you look at the numbers, there’s a lot of life left in checks. For example, in it’s latest study, the Federal Reserve reports over 18 billion checks being paid with a total value of $26 trillion dollars1—and that’s just paper or electronic checks alone.
So you see, there’s still a lot of money being exchanged via checks—but if you’re still not sure that checks are right for your business, we’ve compiled the following reasons you should reconsider:
- Checks are very popular among consumers. How popular, you ask? According to the Federal Reserve Bank of Boston, millions of U.S. customers have checking accounts, but do not have a credit or debit card2. In addition, a different study concluded that 90% of U.S. customers have a checking account3. Considering their near ubiquity, perhaps you should consider adding this tried and true payment method.
- Checks give consumers more options. That is, according to small businesses. According to a recent survey, 71% of small businesses agree that checks allow them to offer their customers more payment options4.
- Checks make consumers feel safer. According to recent TeleCheck research, many customers choose checks because they believe checks are less susceptible to fraud than payment cards5. If you want to provide safe payment options, checks might be the way to go.
- Checks pay more than other forms of payment. Did you know that the average credit card swipe is $50, and that the average check amount is 3x that6? Bigger tickets for you mean bigger payoffs for your business, which is something every business owner strives for.
- Checks don’t require someone to be internet/smartphone savvy. According to the Pew Research center, 15% of U.S. adults don’t use the internet7. With such a resistance to technology, it’s important to businesses to cater to these consumers by offering payment options that they’re comfortable with—and that means checks.
Whether you’d like to admit it or not, checks are still alive and kicking, with millions of dollars being paid by checks every day by millions of consumers. If you’d like to capture your business’ share of those dollars, it’s important you offer a wide array of payment options that every consumer is comfortable, and today, those options still include checks.
To learn more about how checks can help your business stay competitive and offer your customers the payment options they prefer, contact a TeleCheck representative today.
1 2013 Federal Reserve Payments Study
2 Federal Reserve Bank of Boston, 2014
4 TeleCheck SMB Brand Awareness Study, April 2015—Research by Lynx Research Consulting
5 TeleCheck Consumer Brand Awareness Study, March 2015—Research by YouGov
6 TeleCheck Business Analysis, 2014