Using a traditional paper check system, the merchant deposits the paper item into their bank account. Any returned item is sent back to the merchant's bank, and fees are assessed. These reports will facilitate the merchant's bank statement reconciliation. Improve Cash Flow. Funds are settled within two banking days, compared to the delays due to mail delivery times and the longer clearing times associated with paper checks.
Consumers can make a check payment immediately, rather than writing a check and mailing it.
Inc. All Rights Reserved. As online retailing continues its meteoric rise, merchants are searching for more and better ways to handle their customers' online transactions. Many online businesses already offer credit card payment options, but are finding that their inability to accept checks prevents them from maximizing sales. The Fast, Secure and User-Friendly Payment Option. Millions of Americans prefer to write checks rather than use a credit card.