Saying Goodbye to Paper Checks: Why Your Business Needs B2B ACH

The Check Is Becoming the Outlier

Many B2B companies have modernized virtually every part of their operations. They’ve streamlined payroll, accounting, and customer interactions, upgraded all their software, and even selected tools that can help with customer service and interaction, but accounts receivable is still depending on paper checks. Invoicing is digital; accounting is digital; payment still involves printing, mailing, depositing, and reconciling a physical check.

If that sounds familiar, ACH is the natural next step in your payment modernization process. Moving from checks to ACH isn’t simply about speed. It can reduce payment friction, decrease administrative work, and lower the cost of getting paid.

Why Paper Checks Create More Work Than Businesses Realize

Because paper checks may have been your solution of choice for many years, chances are, you aren’t thinking about the amount of work that goes into them, both from the customer end and the receiving end.

First, the customer prints and mails the payment. That simple step alone means that the merchant is waiting for delivery, leaving them reliant on the postal service to get that check in a timely manner. Once it’s received, the staff has to sort the mail, record the check, and deposit it. Accounting must also match the check to the correct invoice, which can be particularly difficult when you’re dealing with a customer who has ongoing financial interactions with your business.

Then there’ s the cost of lost, delayed, or incorrectly issued checks, all of which require additional follow-up and staffing time. Furthermore, paper checks introduce a greater overall risk of physical handling errors as well as fraud exposure.

Ultimately, that means the cost of checks adds up fast. It’s not just about the banking fees. You can also end up with employee time losses and operational inefficiency, all of which can add up faster than anticipated.

ACH Brings B2B Payments Into the Digital Workflow

ACH transforms the process of getting paid, making it easier for both the merchant and the customer. The payment moves electronically from one bank account to another, with no unnecessary delays in the middle. Customers can pay invoices quickly and efficiently, without printing or mailing checks, and transaction records make reconciliation and payment tracking easier. Furthermore, recurring customers can authorize ongoing payments instead of initiating a new check every billing cycle.

Integration with Current Workflows

ACH solutions are easy to incorporate into your existing invoicing and payment workflows. You don’t have to upgrade your existing platforms or options; instead, it works with your tools and can be plugged into your software with a custom API. ACH also works alongside cards, wires, and checks, rather than requiring merchants to eliminate other payment methods. It gives customers another way to pay: one that is better aligned with how modern businesses operate.

The Economics Become Even More Compelling as Invoice Size Grows

ACH processing is structured differently compared to other payment options. Electronic payments often lean more economical for larger B2B transactions.

By the Numbers: Considering Your Options for Payment

• Check: Manual work, slower processing
• Card: Convenient, but potentially expensive at high ticket amounts
• Wire: Useful for some types of transactions, but may add fees and manual initiation requirements that can complicate the payment process and lead to unnecessary delays
• ACH: Electronic, repeatable, and often cost-effective

Which Businesses Are Especially Well-Suited for B2B ACH?

Some B2B industries are more practically aligned and would benefit from the ACH solution including:

• Manufacturers and distributors collecting large invoices
• Wholesalers with repeat buyers
• Professional services firms
• Contractors and construction companies
• Commercial property and service businesses
• Suppliers working on net-30/net-60 terms
• Businesses with repeat customers or predictable invoices

If your business deals with high-value transactions and repeat business and uses an invoice-based payment system, you have a strong ACH opportunity.

Don’t Replace Every Payment Method. Build a Better Payment Mix.

The key to an effective ACH strategy isn’t eliminating payment options. Instead, it’s adding an option into the mix that may better fit the needs of modern buyers and merchants. Different payment rails serve different needs and businesses may need to carefully consider the options that are the best fit for both them and their customers. Cards may remain ideal for some types of transactions: smaller dollar amounts, quick payments, variable invoices, and more. ACH, however, fills the gap for large invoices and repeat B2B payments, creating a more effective strategy for customers in those categories. Modern payments aren’t about limiting options. Instead, they’re about giving businesses and customers the right rail for each type of transaction.

How VeriCheck Helps Businesses Add ACH

Many businesses haven’t had the chance to add ACH to their payment options. At VCI, we give businesses the ACH processing infrastructure needed to accept electronic bank payments. With flexible integration options, custom APIs and the ability to support different payment environments, VCI makes it easy to add a payment option that may better fit the unique needs of merchants dealing with large invoices or repeat invoices. We offer reliable processing, reporting, and access to knowledgeable support that can help streamline the transition and ensure that you are able to make the most of those new tools.

We don’t want to replace the tools you already use. We want to help you set up ACH on the tools you already have, or offer you a new one: one that fills the gap and allows you to provide for new customer needs.

Take a look at how many of your receivables still arrive by check and what challenges that may be representing for your organization. Then, explore where ACH could reduce friction and cost.

Still collecting large B2B invoices by check? Talk to VeriCheck about adding ACH to your payment mix.