Who Still Issues Check Payments? Companies.
The most common primary payment method between companies is by check. According to the 2016 AFP Electronic Payments Survey, 94% of organizations report that they still use checks to pay their major suppliers, and 93% of companies receive checks from major business partners. Checks can be easier and less expensive than a conversion to electronic payments, but some companies do not know the risks associated with non-secured check payments, such as check fraud and check reject fees.
Check Payment Risks: Check Fraud and Check Reject Fees
There are several different ways to issue checks as a business, but by using a traditional checkbook, pre-printed check or non-secured blank check stock paper, companies are at risk for check fraud, check rejects and check reject fees.
|Check Issuance Process||Risk|
|Traditional Checkbook: manually writing a check||Check fraud|
|Pre-printed checks & a laser printer||Check fraud|
|Non-secure MICR printers||Check fraud
|Secure MICR printer solution||SECURED - Check fraud risk mitigated, Check rejected prevented|
The most secure way to issue a check payment is with a MICR check printing solution for business, such as the Source Technologies’ MICR printer.
Check Printing Solutions for Businesses
With a non-secure MICR printer, companies often switch between a regular laser toner cartridge for general office printing and a MICR toner cartridge to print checks. When someone forgets to switch from the regular laser toner to the MICR toner before printing the checks, the checks are printed with regular laser toner, creating an expensive problem for the company. Since MICR toner is a federal requirement for negotiable documents, the bank will reject the checks as non-MICR documents, and the issuing company will be charged check reject fees.
A Source Technologies secure MICR printer solution is the only way to ensure that checks issued by a company will not be rejected by the bank. Only a secure MICR printer solution utilizes MICR Toner Detection, which makes it impossible to print checks unless the MICR toner is loaded into the printer. It is a simple, effective way to prevent an expensive human error by ensuring the correct toner is used to print checks.
To reduce your company’s risk of check fraud and check reject fees, explore Source Technologies’ cost-efficient, risk-mitigating MICR check printing solutions for businesses or contact us today.