--- title: The True Cost of Paper Checks description: Accepting paper checks is costing your business more than you know. Here are three reasons to switch to ACH check processing. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/paper-checks-ach.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. Get time back and spend it with furry patients.](https://www2.payjunction.com/payment-processing-veterinarians) - [Dental Simplify patient payments with multiple means of collection at your dental practice. Meet patient expectations and elevate the payment experience.](https://www2.payjunction.com/payment-processing-dentists) - [Auto Dealer Manage dealership payments by department, brand and location. Get automated reports for simplified end-of-day close and save on processing fees.](https://www2.payjunction.com/automotive-merchant-services) Developers - [API Documentation See how to embed omnichannel payment features into your software, using your choice of our intuitive integration methods.](https://developer.payjunction.com/) - [Developer Experience Explore the developer journey and learn how our full-service partnership model helps you maximize merchant payment adoption rates.](https://www.payjunction.com/payments/payment-api.html) - [No-code Payments Integration® Rapidly integrate payment acceptance features into any SaaS application in minutes using our easy-to-use Chrome browser extension.](https://www.payjunction.com/payments/no-code-payments-integration.html) - [Integration Marketplace Check out our growing marketplace of integrated solution partners that streamline payment acceptance and help businesses automate and scale.](https://integrations.payjunction.com/) [Pricing](https://www.payjunction.com/payments/pricing.html) Resources - [About Us Learn how our people-first culture at PayJunction helps us earn widespread recognition and awards.](https://www.payjunction.com/payments/about.html) - [Careers Join us in our pursuit to deliver exceptional experiences to customers and partners.](https://www2.payjunction.com/careers) - [Support Get helpful information about how to use features, troubleshoot problems and contact us.](https://support.payjunction.com/) - [Blog Gain useful insights into payment industry trends and PayJunction solutions.](https://blog.payjunction.com/) - [Guides Up your payment processing knowledge with our in-depth eBooks and White Papers.](https://guides.payjunction.com/) - [Tutorials Read articles and watch videos about how to use valuable features on the PayJunction platform.](https://blog.payjunction.com/topic/pj-university) # The True Cost of Paper Checks ![The True Cost of Paper Checks](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/paper-checks-ach.svg) [![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=48&height=48&name=Ursula_Librizzi.jpg) Ursula Librizzi](https://blog.payjunction.com/author/ursula-librizzi) 10/1/2018 Estimates suggest your business could be spending $24,540 annually just processing paper checks. Since [1865](https://www.philadelphiafed.org/-/media/research-and-data/publications/working-papers/2012/wp12-12.pdf), checks have played a pivotal role in the United States payment system. Checks were the only non-cash option for the first 100 years of its existence, until credit cards were introduced in the 1950s. As payment technology has evolved, the need for checks has diminished — but the costs have remained. Here are three ways paper checks could be costing your business more than you realize: 1. **Money** – According to [NACHA](https://electronicpayments.nacha.org/), it costs on average $1.22 to [process a paper check](https://paysimple.com/articles/echeck_processing.html), which accounts for manpower and various other costs. Overall, checks are “a burden on the economy,” according to Vipal Monga, a reporter for [The Wall Street Journal](https://blogs.wsj.com/cfo/2014/03/10/u-s-companies-cling-to-writing-paper-checks/?mod=wsj_cfohome_cforeport). Bill.com estimates that paper checks cost business up to [$24,540 annually](https://www.bill.com/sites/default/files/How%20Much%20does%20it%20Really%20Cost%20to%20Pay%20with%20Paper%20Checks.pdf) in terms of employee labor, materials, bank fees and postage. Paper checks pose costs for customers, too. If your business receives mailed checks for [recurring payments](https://blog.payjunction.com/recurring-billing-benefits/), your customer is paying for the check, postage and envelope every time a payment is due. 2. **Time** – Checks eat up everyone's time. Customers spend time writing them at checkout or prepping them to be mailed out. Businesses spend time waiting for checks in the mail or chasing down customers to collect check payments, driving to the bank to make deposits, and then verifying the deposits at a later date. If a check bounces, you must track down the customer to resolve the issue, and guess what? That’s more valuable time taken away from your day. In total, Bill.com estimates that approximately $1,280 in labor costs are associated with paper checks. Checks also add more volume to post offices’ workflows, incurring costs for the government and taking up time for its employees. 3. **The Environment** – Checks impact the environment just like [paper receipts](https://blog.payjunction.com/paper-receipts-impact/) do. The production of checks requires trees, water and gas, and it expels greenhouse gases. Ultimately, once a check is processed, it is destroyed within 90 days of acceptance, simply contributing more waste to landfills. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## ACH: An Alternative to Paper Checks A cheaper and environmentally friendly option is [ACH processing](https://blog.payjunction.com/ach-payment-processing), which can cost as little as [$0.25 per check](https://www2.payjunction.com/ach-demo) to process. In contrast to Bill.com's $24,540 estimate for paper checks, ACH checks cost just $1,680 annually — a 93 percent reduction in costs. Though the growth of ACH was initially slow, [19 billion](https://www.philadelphiafed.org/-/media/research-and-data/publications/working-papers/2012/wp12-12.pdf) ACH transactions are now processed annually. Why? Because beyond its low cost and green technology, it’s convenient. For one, processing ACH payments through [Virtual Terminals](https://blog.payjunction.com/virtual-terminal-credit-card-processing) allows for [faster deposit verification](https://blog.payjunction.com/bank-reconciliation-streamlined/). Most providers that do ACH check processing offer next-day funding, which means you’ll get your money deposited into your account within a day. That’s much quicker than the typical seven to 10 days it takes for paper checks to clear. ACH processing sends quicker alerts of [rejects](https://blog.payjunction.com/ach-processing-defined/) or [NOCs](https://blog.payjunction.com/notifications-of-change/), so there’s less time between the initial payment and notifications of delays. You also gain the ability to collect hands-off recurring payments. Instead of collecting mailed-in checks, you can set up a custom schedule to automatically bill your customers’ accounts. With the ability to store accounts on file, you can also re-charge your customers for one-time transactions. Instead of using duplicate checks to create a paper trail of transactions, ACH payments allow you to produce a receipt that is stored in the cloud for quick reference. The receipt can be emailed to the customer for her records, and a signature can be captured in-person or remotely to ensure that the transaction has been authorized. Instead of using duplicate checks to create a paper trail of the transactions, ACH payments allow you to produce a [receipt](https://blog.payjunction.com/custom-receipts/) that is stored in the cloud for quick reference. The receipt can be emailed to the customer for their records, and a signature can be captured in-person or remotely to ensure that the transaction has been authorized. ## Start accepting ACH payments today. Opt for ACH check processing to not only save your business time and resources, while reducing your environmental footprint! *Editor's Note: This post was originally published in August 2017 and has been updated for comprehensiveness and accuracy.* [ACH](https://blog.payjunction.com/topic/ach) --- ##### [![EMV Liability Shift: Explained](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/emv-liability-shift-explained.svg) EMV Liability Shift: Explained](https://blog.payjunction.com/emv-liability-shift-explained) ##### [![How Swiping an EMV Card Cost One Business $5,368](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/emv-chargeback-case-study.svg) How Swiping an EMV Card Cost One Business $5,368](https://blog.payjunction.com/emv-chargeback-case-study) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![4 Ways to Increase Customer Trust With Your E-commerce Checkout Process](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/ecommerce-checkout.svg) 4 Ways to Increase Customer Trust With Your E-commerce Checkout Process Your e-commerce checkout is the climax of your marketing, advertising, and acquisition efforts. A good checkout process secures your sales at the most crucial point, so it must inspire customer trust and confidence.](https://blog.payjunction.com/ecommerce-checkout) ## [![5 Tips for Hassle Free eCheck Payment Processing](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/echeck-payment-processing.svg) 5 Tips for Hassle Free eCheck Payment Processing Hands up if you can’t wait until the day the phrase “the check is in the mail” becomes totally obsolete. Though checks persist as a common payment form, and one some of your customers may prefer, they can really slow down your payments and be a pain to deal with: first you have to wait for a paper check to arrive in the mail, then you have to drive to the bank to make a deposit (or wait for enough checks to accumulate to make the time spent on this task worthwhile), and then you have to wait several more days for the check to clear.](https://blog.payjunction.com/echeck-payment-processing) ## [![Four Ways to Reduce the Spread of Germs at the Checkout](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/reduce-germs-checkout.svg) Four Ways to Reduce the Spread of Germs at the Checkout COVID-19 has forced us all to evaluate social interactions, and has underscored the importance of washing our hands and sanitizing surfaces to reduce chances of transmission.](https://blog.payjunction.com/reduce-germs-checkout) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. Get Email Updates GO Thank you for subscribing! PayJunction is a Level 1 PCI Compliant Provider. PayJunction is a registered ISO of PNC Bank, N.A., Pittsburgh, PA. © 2026 PayJunction. All rights reserved. [Privacy Policy](https://support.payjunction.com/hc/en-us/articles/211053648) and [Terms of Use](https://support.payjunction.com/hc/en-us/articles/211053628). ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ursula Librizzi" }, "dateModified" : "2023-04-03", "datePublished" : "2018-10-01", "description" : "Accepting paper checks is costing your business more than you know. Here are three reasons to switch to ACH check processing.", "headline" : "The True Cost of Paper Checks", "image" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/635739/BLOG/FEATURED%20IMAGES/paper-checks-ach.svg" }, "mainEntityOfPage" : "https://blog.payjunction.com/paper-checks-ach", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/635739/logo-400px.png" }, "name" : "PayJunction" } } ```