Paper vs Electronic: Which Check Can You Count On?

Making payments is no longer limited carrying large sums of money in hand. There are various payment methods that one can choose to use. Checks are one of the most stable payment methods that there is. You can carry millions of dollars in your pocket with the help of a single slip of paper. The process of check payment has become easier since there are electronic checks available as well. So, before you order computer checks online, weigh your check payment options carefully.

What are Paper Checks?

People are highly familiar with paper checks. Most people handle paper checks on a regular basis. You can order computer checks online and receive paper checks with your bank information printed on it. To pay someone using the check you need to fill in the payee information and endorse the check. The payee then needs to take the check to the bank and deposit it to complete the payment process.

What is an Electronic Check?

Electronic Checks or e-Checks work just like paper checks without the involvement of any paper. The payment is made from your bank account directly to the payee’s bank account after going through the ACH network. You need to authorize the payment, using an online payment processing software your payee inputs the payment information and the payment is completed over the ACH network.

Pros and Cons of Paper Checks

Here are some of the pros and cons of using paper checks:

Pros: When you pay using a paper check you get the time to cancel the transaction if you have made any mistake. Post-dates checks allow you to show your payee that you will fulfill your payment promise. You get the time to gather more funds before the money is withdrawn from your bank. You can easily order computer checks online and print them at your office.

Cons: Since the transaction takes time many payees prefer faster payment methods. You cannot merely order computer checks online, you need to fill out the checks meticulously. If someone crashes a post-dated check too early, then it can damage your credit scores. Paper checks have the chance of being rejected by the banks.

Pros and Cons of Electronic Checks

Here are some pros and cons of e-Checks:

Pros: The payment process is nearly as fast as making a card payment. You do not have to worry about keeping track of your transactions since it all happens online. The payee can use a fund verification process with e-Checks. Paper checks can be converted to e-Checks easily.

Cons: e-Checks can be rejected just like paper checks if there are insufficient funds. Some payment gateways charge fees for processing e-Checks. Since you might have to give sensitive bank information and authorization, the process might not be very secure.

Conclusion

You can order computer checks online and pay your payee using paper checks. Your payee can choose to convert the check into an e-Check. Both methods have their advantages and drawbacks. Paying using e-Checks can be a faster and easier process. You need to understand the e-Check payment process to ensure that you are doing it correctly. Keep paper checks handy, while shifting to an e-Check payment process.