Paper checks have long been a trusted form of payment for businesses and individuals alike. They’re tangible, familiar, and feel secure in principle. However, in recent years, the landscape has shifted, and payment fraud involving paper checks is on the rise. This increases the risk for businesses and payers alike. If you’re still reliant on paper checks, it may be time to reconsider.
The Risks of Paying with Paper Checks
According to the U.S. Department of Treasury, check fraud is among the quickest growing forms of financial crime in the U..S., and has increased a staggering 385% since the pandemic. Paper checks are highly vulnerable to theft, forgery, and alteration. Once a check is stolen from the mail, it can be altered to drain funds from your account. The sensitive information printed on checks — such as bank account and routing numbers — can also be used for unauthorized transactions, potentially leading to costly losses and headaches.
Additionally, mail theft is on the rise, with criminals increasingly targeting both residential and commercial mailboxes. Even advanced security features on checks can’t fully eliminate these risks. And when fraud occurs, the process of reporting, recovering funds, and restoring trust can be time-consuming and disruptive to your business operations.
Businesses that use paper checks for B2B payments are at increased risk of fraud. It is estimated that 75% of businesses have experienced check fraud. Paper checks are being ditched by businesses and consumers alike because they are simply inconvenient and lack the security assurance of a digital payment method.
Why Switch to ACH Payments?
Automated Clearing House (ACH) payments are a safer, faster, and more efficient way to send money. By using ACH, you can:
- Reduce Fraud Risk: ACH transactions are encrypted and processed through secure electronic systems, minimizing exposure to fraud.
- Save Time: No more printing, signing, or mailing checks — ACH payments streamline your payment process.
- Enhance Cash Flow Management: With predictable processing times, ACH helps you maintain better control over your finances.
ACH payments are consistently ranked as one of the safest payment methods a business can accept, and are regulated by the Federal Reserve Bank and Electronic Fund Transfer Act.
How to Make the Switch with Trusaic
Take action today to safeguard your business. Transitioning to ACH payments is simple and can significantly reduce your exposure to fraud. Contact our team to learn how to set up ACH payments for your account.
Protect your business and your bottom line — make the switch today!