Accepting Rent via Paper Check: What’s it Really Cost?
You’re likely familiar by now with the term eCheck. If you are not, an echeck is an electronic version of a paper check that is used to make payments and transfer funds online. The benefits of such a form of payment in contrast to traditional paper checks and cash are fairly clear (simplicity, security, convenience), and you’ve likely weighed those pros against the (perceived) con of increased cost. However, the notion that eChecks are more expensive than paper checks – or, more commonly, that accepting rent via paper check is actually free – is the result of a misconception. Paper checks do have a cost, and it’s not merely in time. Both directly and indirectly, accepting rent via paper check is often more expensive than eCheck.
The Real Cost of Going to the Bank
Paper checks are loaded with sunk costs and indirect fees. It is because of this that people often mistakenly think that accepting rent via paper check is a free means of processing funds. But this is not the case. There are a few fees that should be taken into consideration – primarily manpower and incidental costs – that are not included when processing payments via eCheck.
For starters, depositing paper checks at the bank requires you to physically be there. The average distance between bank branches is increasing due to branch consolidation and closures. This means more time (manpower cost) and gas, mileage, wear and tear, etc. (incidental costs). But let’s get into specifics.
The average distance to a bank is ab……
The Real Cost of Going to the Bank
Paper checks are loaded with sunk costs and indirect fees. It is because of this that people often mistakenly think that accepting rent via paper check is a free means of processing funds. But this is not the case. There are a few fees that should be taken into consideration – primarily manpower and incidental costs – that are not included when processing payments via eCheck.
For starters, depositing paper checks at the bank requires you to physically be there. The average distance between bank branches is increasing due to branch consolidation and closures. This means more time (manpower cost) and gas, mileage, wear and tear, etc. (incidental costs). But let’s get into specifics.
The average distance to a bank is ab……