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Celebrating Electronic Payments

Posted by Chris Schumacher | Fri, Apr 29, 2011 @ 11:48 AM

Direct Deposit Month May is Direct Deposit Month. This may not cause a lot of excitement outside the payments industry and there won't be any parades or barbeques in its honor, but it does represent how ubiquitous electronic payments have become. Whether for business or personal use, or both, almost everyone has some experience with electronic payment processing.

Direct payments are used by more than half of U.S. households to pay their mortgage, insurance premiums, or other monthly bills. Direct deposit is the way about 75 percent of us get our pay check and all kinds of businesses are now processing check payments through electronic conversion and remote deposit capture.

In addition to the convenience that electronic payments provide, there are several other reasons why we have embraced them as a payment method. An online poll on www.electronicpayments.org reveals that in addition to saving time, we use electronic payments to manage and control finances, to save money, to avoid identity theft and to reduce paper.

For consumers, direct payments save the time and cost of writing and mailing a check and can be an easy way to control the date the payment is received, helping to avoid late fees and penalties. Direct deposit means a more timely deposit of payroll checks, especially beneficial for employees that work remotely or on the road.

Electronic payments provide several benefits for businesses, too. By processing check payments electronically, businesses can spend less time preparing deposit slips and sending someone to the bank. A remote deposit capture (RDC) service can be used for A/R processing and point-of-sale purchases enabling a business to scan a check and send the files to their bank right from their desktop with a PC and imager. RDC allows for conversion of business checks and consumer checks making it suitable for a wide variety of businesses.

With RDC, returned items can be identified quickly. Some services, including CrossCheck's Remote Deposit Capture, include guarantee features and Future Deposit options, allowing the business to schedule multiple checks to be automatically deposited over a period of time.

So, maybe it is time that we recognize the convenience that electronic check processing offers all of us. Happy Direct Deposit month!

CrossCheck offers several electronic check processing services. Call (888) YES-2CHX for more information.

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Topics: Chris Schumacher, CrossCheck, Electronic Check Processing

Written by Chris Schumacher