Did you know that nearly 500,000 letters get lost each year with Canada Post? This means that every time you send a cheque in the mail, you’re taking a significant risk.
There are many different ways that cheque fraud can happen should your cheque end up in the wrong hands. Criminals could create fraudulent cheques or change the name or amount of a legitimate cheque. But, the risks of loss and theft are not the only reasons you should avoid sending your cheques in the mail. Here are two other factors you should consider:
Every so often, union workers go on strike in the hope of obtaining better working conditions. When couriers or postal workers go on strike, it has a huge impact on businesses. Think of it this way. If your payment to a supplier is delayed, then your shipment of goods is delayed. If your shipment is delayed, then your manufacturing process can be disrupted, and you could be left short of stock.
Also, if your cheque gets stuck in the madness of a strike, chances are pretty decent that it will probably end up lost. Which means having to reissue the cheques, losing timing, and having to deal with frustrated suppliers.
It’s a Manual Process!
When you send a cheque, you’ll have to manually keep track of your transactions. It’s harder to keep valid documentation of your paid invoices while you’re waiting for your recipient to confirm that they’ve received your cheque. This can be especially tricky when paying overseas affiliates, where things like time-zone differences and local bank regulations come into play.
That’s why it’s much more beneficial to utilize a payment method that automatically keeps track of all of your paid and unpaid invoices as well as your beneficiary’s details. Some payment platforms (like REMITR), even allow you to integrate your payments with trusted accounting platforms like Xero and Quickbooks.
So Why Do People Still Use Cheques?
The simple answer is because wire transfers suck (sorry, not sorry). They are slow – typically taking around 3-5 business days (or longer) to move money between bank accounts. They’re also expensive – banks can charge up to $80 to send international payments, and most charge the recipient a fee to receive the funds into their account as well. So your beneficiary ends up getting paid less than what they are owed.
Is There Another Way?
Online transfers are, without doubt, a more efficient payment method than cheques or wire transfers. Thanks to online transfers, you can send quicker payments that cost far less in fees, particularly when sending a domestic payment.
But, there are some drawbacks.When it comes to international payments, even online transfers can take much longer than advertised by providers, and they can be quite expensive too. Many providers – both banks and money transfer companies – can charge high fees, which are often calculated as a percentage of the amount being sent. And that’s without even mentioning the steep exchange rates!
Is There a Better Option?
Yes! Some trusted Money Service Businesses (MSBs) offer live exchange rates and lower flat fees. With REMITR, you can send one-day payments for super low flat fees (no matter where you do business or how much you wish to send). We also allow you to put your payments on autodrive*, freeing up cash flow and time that you can put towards growing your business.
*Our platform allows you to put your international money transfers on autopilot, and schedule your global mass payments to suit your unique needs.