6 Benefits Of Direct Deposit/Payment
Is your company still writing checks for payroll and vendor bills? If so, you could be missing out on more than you think.
“Direct deposit of employee paychecks and Automated Clearing House (ACH) payments to vendors or creditors is a prudent business decision that saves your company money and can deter fraud,” explains Sandy Washington, senior vice president for Commerce Bank’s St. Louis region.
That’s only the tip of this iceberg. Here are six reasons why your business should make the switch:
1. You’ll Save Money. It’s a fact: electronic payments are significantly cheaper than issuing checks. Businesses can save anywhere from $0.50 to $1.25 per payment by using direct deposit instead of checks.
2. Your Employees Will Thank You. By making their lives easier and dispensing with the need for workers to leave half an hour early to deposit checks, you’ll be improving productivity.
3. Your Money Will Be Safer. By paying employees and suppliers with traditional checks, you’re putting your business account numbers at risk. “An electronic environment presents less fraudulent activity against a company,” notes Michael Wamszganz, senior vice president for Heartland Bank. “It may not eliminate it completely, but it reduces the risk of counterfeit and altered payments.”
4. It’s More Efficient. By eliminating check-float time, electronic payments allow businesses to perform more efficient cash flow projections. Also, most banks have online venues that allow customers to track their transactions.
5. You’ll Save More Money. Agree to a direct debit payment option, and a number of vendors will offer you discounts.
6. Your Credit Won’t Suffer. If you have a recurring expense, direct debits will help ensure that vendors are paid on time.