It’s Time To Say Goodbye To The Paper Cheque
The paper cheque was so… 1762? Really? Yep, that’s when the first printed versions were introduced in 1762 by British banker Lawrence Childs. Isn’t it about time you stopped living in the past?
Somehow, despite the numerous disadvantages it poses, the cheque continues to play a big role in the corporate world and B2B payments. 64 percent of B2B payments are still made with cheques, despite the fact that 67 percent of consumer payments are made electronically.
According to stats from PYMNTS, B2B payments have an 18 percent error rate, and the average invoice takes $17 and 10 days to process. In total, the full lifecycle of a B2B payment in the US market is a mind-numbing 34 days. 34 days!
Is there a better alternative? Yes. It’s open-loop prepaid products.
- Prepaid cards are a more secure and less expensive option for issuing payments and transfers.
- Funds can be electronically transferred and distributed within seconds to the intended recipients without the hassle and delay of mailing cheques.
- They can replace a direct deposit or wire transfer, giving a business quicker access and more flexibility to use the funds.
- The funds are immediately available to make purchases or withdraw cash at an ATM.
- Businesses can use the card to pay wages and commissions, reimburse expenses immediately, pay contractors and more, using a single tool, in a faster, more cost-effective and controlled manner.
- A card offers an easier transition to electronic payments than an automated clearing house (ACH) deposit.
It’s time for B2B payments need to join the digital age.
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