Paying your vendors is part and parcel of running a successful business. To complete payments on time, many businesses create an in-house check payment system. You might need some clarity regarding the payment setup.
Here are some questions that arise before a check printing system is established.
Why Check Payment?
While there are many common forms of payments that vendors accept, check payments remain a popular method.
The check transaction is fee free, and the ability to postdate a check give businesses some freedom. Since the process is fast and straightforward, many businesses opt for check payments.
What is the List of Requirements for the Payment Setup?
To create a check payment system, you need the following tools:
#1. Check paper
#2. Office printers for checks and magnetic ink
#3. Check printing software
#4. Endorsement stamp
#5. Business envelops
#6. Business deposit slip
How Much Money Needs to Be Invested?
Blank checks, deposit slips, envelops and an endorsement stamp can be bought for about $100. To Avail the services of check printing software, you might have to pay around $300. The office printers for checks and the magnetic ink together can cost somewhat over $100.
So, for $500-$600 you can have the check printing setup ready.
Can Checks Be Printed on Any Paper?
So long as valid bank information is present on a piece of paper it ideally counts as a check. However, your payee may not be willing to accept checks printed on any paper other than a check paper.
It is best not to take a chance with other kinds of paper when check papers are cheap and easily available.
Where to Buy Check Paper?
The bank is the most expensive source of check papers. You can buy either blank or printed check paper from check printing businesses online or try out retail stores like Walmart.
For business checks, it is best to buy bulk checks from check printers online.
How to Print Checks?
You need to have access to check printing software like QuickBooks. QuickBooks is a widely used check printing and accounting software.
You can follow a check printing tutorial to understand the printing process.
What Kind of Printer to Use?
You do not need a special kind of office printers for checks. Inkjet printers that you own can be used to print checks.
Just to make the process easier, you can have separate office printers for checks.
What Kind of Ink Does the Printer Need?
To print computer checks the printer needs regular black ink. However, to print on a blank check, your office printers for checks need to have magnetic ink.
The magnetic ink is needed to print the MICR code onto the blank check.
What to Do After Printing the Check?
Right after your check is printed, you cannot hand it to the payee. You need to endorse the check by signing it or using an endorsement stamp.
To demarcate the source of the check, businesses use printed envelopes to hand over the checks to their payee.
Is the Process Safe?
No transaction system is 100% safe. If you are not careful about who has access to the system, then fraud checks might get cashed. When printing the checks, you need to always double check the information before and after you hit the print button.
Using the software can reduce the margin for error, but you should never hand a check before verifying the details printed on it.
Having a check printing system makes payments easier. Once you have cleared your doubts, you can start ordering all the components needed to complete the setup.