Paper checks are the slowest and most labor-intensive form of B2B payment.
What does this mean?
Bank of America estimates that the costs of processing a single business check range from $4 to $20, inclusive of check stock, stamps, envelopes and the time spent writing, mailing, collecting and reconciling payments.
Soft-Cost of a Paper Check: $4.00 - $20.00
Paper Checks typically take 3-7 business days to fully clear, depending on the issuing & receiving banks.
Time to Receive Payment
Let's see this example:
Day 1: Invoice sent
Day 2: Check written and prepared to mail
Day 4: Check is mailed
Day 8: Check received
Day 10: Check taken to bank
Day 15: Funds fully clear
Day 16 - 20: AR Team is left with data entry, remittance matching, and reconciling deposits by hand
Paystand automates the paper check process through our SMART Lockbox at only $2.49 per check.