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Check Processing & Payments Information

4 Reasons Your Merchants Need Check Processing Services

Posted by Todd Little | Fri, Apr 26, 2013 @ 10:00 AM

merchant check processingAs a payment professional, you know your merchants work hard to stay in business and every sale counts. Same for you, right? One way to improve sales is through check services.

Think no one writes checks anymore? Think again. Over 90 percent of US adults have a checking account. Checks are a good example of a reliable and cost-effective payment method.

Check processing services, including check guarantee and electronic check processing such as RDC, enable a merchant to provide a convenient payment method to their customers and do it with less risk and hassle. In addition to a payment guarantee, having a check service in place can offer operational efficiencies, payment flexibility, and customer loyalty, all of which can increase sales and cash flow. When you make it easy for merchants to increase sales, that helps your business too. 

Here are four reasons why your merchants need check services… and why you should be selling them.

1. Check services provide payment options that other payment methods do not. What happens when the credit card is maxed, the debit card has a daily limit and payday isn’t until tomorrow? Your merchant’s customer writes a check or wants to.  For large purchases, car repairs, and vet emergencies, for example, merchants that have a future deposit (multiple check) service can offer a payment program that doesn’t require a credit check. It’s easier than a layaway program and is a win-win for the merchant/customer relationship.

2. Electronic check processing saves your merchants time and money. Services including check conversion and remote deposit capture enable your merchants to easily process and deposit checks right from their desktops.  No more writing out deposit slips, then getting in the car to drive to the bank and stand in line. And the next day, do it all again. Instead, your merchant can scan the checks through an imager and PC, and funds are electronically deposited into the merchant account. No more rushing to the bank before it closes or waiting until Monday. Easy, done!

3. Some of your merchants’ customers are businesses. Businesses shop at your merchants' stores.  Other businesses are probably some of your merchants' most loyal customers. When a business makes a purchase, most of the time, payment is by check. Checks are easy to track for the purchasing department. Issuing a check is safer than sending an employee out with a large wad of cash. Businesses buy cars, office supplies, lunches for client meetings, prizes, furniture, and computers. Merchants with a check service in place can easily accommodate these business customers.

4. Limiting payment options limits sales. Not all of their customers are "millennials." Sure, the younger group writes fewer checks than baby boomers. Some of these twenty-somethings don’t even have a checkbook. So if your merchants’ clientele is limited to the under-30 crowd, you should probably be pushing them toward a mobile solution. But for the majority of merchants, customers come in all shapes, sizes, incomes, and ages. (Even the skateboard shop needs to cater to parents.) Baby boomers and seniors are more likely to pay by check than wave their payment-enabled iPhone at the register. And not accepting their check will offend them. With a check guarantee service in place, your merchants can accept checks from customers, even customers with out-of-town or out-of-state addresses, with less worry.

In today's environment, merchants are looking to you for solutions to their payment needs. Don’t let them overlook check services. If you're not selling them, get in touch or see me at ETA. I’ll be in New Orleans next week in Booth 424 and would love to continue the discussion on how check services can make you a hero with your merchants. Stop by, say hi and have a drink or a piece of cake. (Or both, it's ETA!) Even if you’re not going, check out our ETA page and register to win an iPad mini. 

                      check services, ongoing residuals, check processing         ISOs Insider's Guide

Topics: Independent Sales Organization (ISO), Electronic Check Processing

Written by Todd Little