Alternative Payments Offer Relief During Canada Post Strike

The Canada Post strike, now in its third week, has caused widespread disruption for businesses across Canada. With millions of parcels delayed, checks and invoices stuck in transit, on top of strained cash flow, companies face mounting challenges in managing their accounts receivable (AR) processes.

According to the Canadian Federation of Independent Business (CFIB), the strike is costing small- and medium-sized businesses $76 million daily, with the total losses exceeding $1 billion.

For businesses that rely on mailed invoices and payments, the strike shows how unreliable traditional systems like checks can be and why it's important to switch to modern digital payment methods.

How the Canada Post Strike Is Impacting Businesses

This latest strike has solidified that no sector is immune—businesses of all types are grappling with cash flow challenges, operational inefficiencies, and increased costs due to the strike. Now more than ever, finding reliable payment alternatives is essential. The biggest struggle that companies face when using Canada Post for payments is delayed payments due to check payments being stuck in postal facilities, creating unpredictable cash flow. Plus, businesses are being forced to pay for costly alternative delivery methods like FedEx or absorb late fees and penalties. 

• Professional Services: Bookkeeping firms and other service providers are struggling to reconcile accounts due to delayed payments, jeopardizing end-of-year close times.
• Retail and E-Commerce: During the peak holiday season, businesses reliant on timely deliveries face missed sales and frustrated customers.
• Agriculture and Manufacturing: Seed suppliers and manufacturers are incurring costly storage fees for undelivered materials and promotional catalogs.
• Consulting Firms: Companies are paying out of pocket for alternative shipping options to avoid losing clients and driving up operational costs.
  
  

Why Are Mail-Based Payments Risky?

The reliance on mail for critical financial workflows exposes businesses to several risks:

1. Lack of Reliability: Postal services are susceptible to strikes, delays, and other disruptions.
2. Low-Security Standards: Check payments sent via postal service are susceptible to being intercepted.
3. Limited Scalability: Manual processes can’t keep pace with modern business demands.
4. Higher Costs: Mailing invoices and receiving checks involve additional operational expenses.
5. Slower Cash Flow: Payments sent via mail take longer to process, creating cash flow bottlenecks.

Canada Post Strike Highlights Need for Digital Payment Solutions

The Canada Post strike is disrupting businesses nationwide, delaying payments, straining cash flow, and driving up costs. With checks and invoices stuck in transit, companies are scrambling for reliable Canada Post payment alternatives to maintain operations.

How Paystand Solves the Problem

Paystand offers modern payment solutions to keep your business moving during disruptions. Our digital platform eliminates reliance on mail and ensures faster, cost-effective transactions.

• EFT Payments: Secure, real-time transfers bypassing postal delays.
• Automated Invoicing: Instant invoicing and real-time tracking reduce delays.
• Online Portals: Enable customers to pay invoices digitally for faster payments.
• Integrated AR: Streamline invoicing, payment collection, and reconciliation.

Act Now to Protect Your Business

Don’t let postal delays stall your operations. With Paystand, you can future-proof your payments and ensure uninterrupted cash flow.

This strike is a wake-up call to modernize outdated systems. Paystand helps businesses:

• Reduce costs with fee-free digital payments.
• Improve cash flow management with real-time payment processing.
• Simplify AR operations through automation.

Plus, let your check payers keep paying with checks through our check digitization feature.

Learn more about future-proofing your business to protect your customers and your cash flow.