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Explainer: Ditching Paper Checks for Electronic Payments

Jemina Boyd May 5, 2023

Stacks of paper checks waiting for the trash to switch to electronic payments
AP Automation
In today’s world, where everything is rapidly shifting toward digitization, electronic payments have become a necessity for businesses and individuals alike. One of the primary benefits of electronic payment methods is that they eliminate the need for paper checks, which are becoming more of a hassle than they’re worth for business owners in a post-pandemic world.

Below, we’ll cover the benefits of using electronic payment processing instead of paper checks, as well as the types of electronic payments that most financial institutions and payment service providers now operate with.


Security is one of the primary benefits of electronic payments, which — ironically — carry more detailed “paper trails” behind them due to all the authentication involved. Paper checks can easily be forged, lost, or stolen, which can lead to fraudulent withdrawals that you can’t get back. On the other hand, e-payments are processed through un-interrupted automation and secure networks, which means that the chances of fraud are significantly reduced. Additionally, these digital payment options allow for better tracking, monitoring, and notifications, making it easier to detect any unauthorized transactions in real-time.


Electronic payments are processed much quicker than paper checks. With online payments, funds can be transferred instantly, eliminating the need for waiting periods typically seen with checks that have to go through routing into bank accounts. This can be particularly beneficial for small businesses that need to make payments quickly or individuals who need to receive funds immediately.


Electronic payments are much more convenient than paper checks. With electronic payments, individuals and businesses can make transactions from the comfort of their own home or office, without the need to physically visit a bank or point of sale. This has been especially modernized by ecommerce and online checkouts. Additionally, electronic payments can be scheduled in advance, making it easier to manage recurring payments.


With paper checks, there are exorbitant costs associated with printing, mailing, and processing. With electronic payment solutions, these costs are significantly reduced, and processing fees are often waived, making it a more affordable option for businesses and individuals.

Environmental impact

Enrollment in an electronic payment gateway can have a positive impact on the environment. Checks go against most sustainability standards due to their inherent use of paper. By eliminating the need for paper checks, we can reduce the amount of paper that is used and, in turn, help to preserve our natural resources.

Increased transparency

Electronic payments provide increased transparency, making it easier for individuals and businesses to keep track of their financial transactions. Electronic payment systems offer detailed records of all transactions, allowing individuals to easily monitor their spending and manage their finances.


Electronic payments are much more accessible than paper checks. With electronic payments, individuals can receive payments from anywhere in the world, so long as they have an internet connection. This can be particularly beneficial for businesses that operate internationally or individuals who have friends and family living abroad.

Reduced errors

Electronic payments can significantly reduce the number of errors that occur with paper checks. With paper checks, errors can occur during the writing or processing of the check, leading to delays and additional costs. With electronic payments, errors are much less likely to occur, making it a more reliable option for businesses and individuals.


Part of doing business online means accepting payments online — most organizations no longer accept payment by check due to their digital infrastructure as well as the liability that comes with holds, waiting periods, and fraud risk with checks. Whereas a business can receive same-day payment for credit card and debit card transactions, for example, having to wait two or more (often more) business days for a check to clear can be a real impediment to making money. And with multiple e-payment options such as cards, ACH payments, direct deposit, EFTs, and even processors like PayPal, there’s a clear winner when it comes to which channel will house a business’s cash flow.

In conclusion, electronic payments offer numerous benefits over paper checks. They are more secure, faster, more convenient, cost-effective, environmentally friendly, transparent, accessible, and less prone to errors. By using electronic payments, individuals and businesses can streamline their financial transactions and manage their finances more effectively. As we continue further digitizing our world, electronic payments will become increasingly important, and those who embrace this technology will reap the benefits.

Jemina Boyd

Jem Boyd has 10+ years of ERP strategic marketing and implementation experience across a variety of platforms. She specializes in developing PairSoft's platform relationships as well as campaigns with Microsoft, NetSuite, Sage, and Blackbaud. She is based in Nashville.

View all posts by Jemina Boyd
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