Simply put, using checks to conduct business is risky. It’s also time-consuming. While checks were at one point in time (for a very long time) necessary, there are far better options out there today that provide the security and speed your business needs to succeed. Here are 3 reasons why checks are not business smart:
1. Data vulnerability
Let’s talk about the points of vulnerability involved in receiving and writing checks: you are handing a slip of paper with your bank account, name, address, and signature out with no control over who sees it. Even in a normal transaction between you and a trusted third party, that slip of paper will still wind up in a mailroom, only to then pass through the hands of an administrative assistant, account assistant, account manager or bank representative. All of those people now have access to that sensitive information. At that point, you may as well have posted the information on Facebook.
2. Cumulative fees
Increased security measures from watermarks to embed security strips means that you’re paying more for your checks. You also need to consider the cost of mailing the check and the cost of your time to write out and send each check every month. On the other side, the companies you are sending checks to have to individually account for each check you send. If it goes missing, they’ll need to track you down and eat up even more of your time and money in the process.
3. Fraud risk
Checks can be forged, meaning identity thieves could lift your personal and banking details straight from a paper check. Check fraud, including forgery, theft and counterfeiting, costs businesses over $1.5 billion each year. Keep in mind also that checks have your signature on them, which can be copied by bad actors and put onto a plethora of documents. This could make it difficult to prove that you did not sign forged checks. Accounts could be opened in your name, new businesses could be started – the list of risks goes on. And legal teams aren’t cheap.
Want to learn how to set up your digital, secure accounting system within Paperless Parts?
The security issues and inefficiencies presented by conducting business via checks are concerning for both ends of the payment chain. Reducing the visibility of information means reducing the security threat footprint your business creates.
To ensure our customers are never at risk, Paperless Parts built a secure way for you to process your payments directly through your Paperless Parts account. The Accounting page is where you can handle all of your company’s financial settings in Paperless Parts. We’ve made it easy to update Payout Information, set Payment Information, establish a Default Tax Rate, and set Purchase Order and Credit Receipts. To get there, navigate to the Settings page and scroll down to Accounting.
Through our secure digital processing system, Stripe, your transactions are always safe and instantaneous. Transactions do not even cross paths with Paperless Parts; they are processed entirely through Stripe’s secure payment processor.
For a complete step-by-step guide to getting set up with your secure digital Accounting system in Paperless Parts, click here to visit our Help Center.
This article was written by Jo Cobble, Director of Cybersecurity Governance at Paperless Parts.