Echecks for Finance Teams: Get Buy-In for Echeck Payments
According to a recent McKinsey survey, 98% of CFOs agreed to have invested in automation and digitization. Furthermore, PwC estimates that finance teams can reduce their time by 30-40% by automating financial processes. It is the primary reason businesses have started prioritizing eChecks for finance teams as a way to eliminate the use of paper checks and incorporate the latest technology into their operations!
Echecks or electronic checks allow companies to send payments to vendors, associates, suppliers, employees, etc., online. Thus, they don’t need to print the paper checks using an office printer, stuff them into envelopes, affix stamps, and complete other manual tasks to make payments.
This blog discusses the different strategies to get buy-in for eChecks for finance teams. Let us begin!
Key Takeaways:
- Echecks are an electronic payment solution that allows businesses to simplify payments.
- Resistance to change and a lack of understanding are the top challenges to getting buy-in from executives.
- You can solve these issues by providing training, defining goals, setting budgets, etc.
- PostGrid helps you create, print, and send checks online to save time and resources.
Top Advantages of Digital Check Adoption for Finance Teams
Reduced Processing and Other Costs
Imagine how much your business would spend buying traditional checks from banks to make payments. If you don’t pay the hefty fees to order a checkbook from your bank, you need to print your own checks. Thus, you must buy an office printer and other perishables, like ink cartridges, stamps, labels, etc. Echecks for finance teams eliminate this issue and help you save on expenses related to check payments. You can reduce the processing fees to make payments more flexible and convenient.
Better Efficiency
Digital checks allow you to process payments faster. It is primarily helpful when you must pay multiple bills for vendors, suppliers, etc. Your finance teams also spend less time reconciling the payments because you have an online setup for automatic reconciliations.
Higher Security
When you use eChecks for finance teams through an online solution, you get many security features. They include encryption, MICR printing, authentication, duplicate detection, etc. These checks are more complex to alter or copy. Thus, businesses have better peace of mind when making vendor, payroll, and other payments.
Top Barriers to Getting Buy-in for Echecks for Finance Teams
Lack of Understanding of the Benefits
Often, it can be challenging to pitch the idea of eChecks to finance teams for making quick payments. The primary reason is that the executives don’t know what this solution brings to the table. They are unaware of the benefits and how it can directly impact costs and boost productivity. Thus, you must offer use cases, case studies, or examples to showcase long-term savings that finance tech can bring to the firm.
Personal Bias
After using manual processes for a long time, finance teams can have personal biases. They might prefer ordering checks from the bank and writing them out to payees themselves. It can lead to slow transformations to using eChecks for finance teams.
Resistance to Fresh Changes
Many executives want to stick to the traditional payment methods they have used for years. Thus, they might resist adopting new financial technology for the finance departments.
Communication Restraints
It is crucial to communicate how eChecks for finance teams can speed up payments and strengthen vendor relationships. Also, you must showcase how it can build trust among different stakeholders. Failing to do so can cause delays while getting buy-in.
9 Strategies to Use to Gain Buy-in From Finance Executives for Digital Check Adoption
Show a Clear Plan for Switching to Digital Checks
Finance teams want to know the “why” and “how.” So, explain clearly how digital checks will save time, cut costs, and reduce errors. Share your goals and how PostGrid’s Print & Mail API makes sending checks easy and safe. A clear, simple plan builds trust and makes approval easier.
Find the Right People and Get Them Involved Early
Start by identifying the key personnel who the change will impact, such as those in finance, IT, and operations. Talk to them early. Ask for their input and show how digital checks with PostGrid’s API can help them. When everyone feels heard and included, they’re more likely to support the switch.
Pinpoint the Main Problem and Show How Echecks Can Fix It
Look at where your payments process is slow, costly, or full of errors. Then explain how solving that issue will save time and money. Echecks for finance teams can speed up payments, cut down manual work, and reduce mistakes. With the right tech, like PostGrid’s API, payments become simpler and more secure.
Tie Finance Issues to What Leadership Cares About
Think about what matters most to senior leaders, including saving money, growing faster, or staying competitive. Then show how your finance team’s problems, like slow payments or high costs, get in the way. Explain how switching to eChecks with PostGrid helps fix those issues. Thus, you can make your case stronger and get leadership on board.
Show the Numbers
Add up what your current payments process costs, like printing, postage, and time. Furthermore, compare it to what you’d save with eChecks for finance teams using PostGrid. You’ll likely spend less and get payments out faster. When you show clear savings and better results, it’s easier to get a “yes” from decision-makers.
Set a Clear Budget for the Switch
Know how much you can spend before starting. Include costs for tools, training, and setting up eChecks to make all payments. A clear budget shows you’re prepared and serious. It also helps finance leaders see that the plan is realistic and worth the investment.
Talk to Vendors and Ask to Meet Their Customers
Before you decide, speak with vendors like PostGrid. Ask if you can connect with other businesses already using their eCheck transaction solution. Hearing real stories helps build trust. You can learn how the system works, how it improves payments, and what results to expect. Thus, it makes it easier to feel confident in your choice.
Create a Simple Rollout Plan Everyone Can Follow
Create a clear, step-by-step plan for transitioning to eChecks for finance teams. Additionally, share when each step will happen and what results to expect. Thus, you can help your team prepare and avoid confusion.
Give Your Team the Right Training to Use Echecks
Make sure your team knows how to use the new system. Provide easy training so they feel confident sending and managing payments with eChecks. With PostGrid, the process is simple, but training still helps avoid mistakes. When everyone understands the tool, payments stay smooth, and the switch becomes a success.
Echecks vs ACH Transfers
Though many companies think of these payment methods as similar, they are distinct with unique features. Echecks allow you to send payments online and require the payer to authorize them. They need to sign the checks, even though eChecks only need a digital signature.
On the other hand, Automated Clearing House (ACH) transfers don’t require the payer’s signature. They also don’t need the payer’s authorization before every transaction. ACH Check transfers include a broader range of payments, like automatic bill payments and direct deposits.
Although eChecks are preferable, ACH payment transfers are slightly faster. They have a processing time of one to three business days. Echecks take around three to five business days to clear, depending on the bank. Also, businesses must note that ACH transfers have high processing fees, which is why banks prioritize them. Echecks typically have a smaller fee. Thus, they are more commonly used by all types of businesses.
How Can PostGrid Help Integrate Check Printing and Mailing into Your Financial Systems
PostGrid’s Print & Mail API allows you to get check printing and mailing features within your finance CRM. Thus, you can make payments online instead of spending a hefty amount when ordering checkbooks from your bank repeatedly.
Our API offers all the same security features as your bank. They include the MICR line, watermarks, MICR ink printing, holograms, etc. However, the process to send them to make bill payments is easier and faster. You can select a check template on the PostGrid dashboard, add the customizations, and place your order.
Additionally, PostGrid allows you to select the shipping date and method. You can also choose whether you want to send a letter with your check payments. Thus, you can easily communicate with your payees. It is the best way to send invoices, marketing mail, and other documents cost-effectively.
Sign up here to know more about using echecks for finance teams via our Print & Mail solution!
FAQs
How Long Does It Take for an Echeck to Go Through?
An eCheck usually takes three to five business days for the bank to process. The bank verifies the account and clears the payment before moving the money. It’s slower than credit cards but quicker and safer than mailing a paper check. You can track everything online without going to the bank.
Can Small Businesses Use Echecks Too?
Yes, small businesses can use eChecks easily. All you need is a business bank account and an eCheck service provider. It’s cheaper than wire or ACH transfer fees. It’s a simple, secure way to get paid or send money online.
What Do I Need to Accept or Send Echecks?
You need a business bank account and a payment service that supports eChecks. You’ll also need the customer’s name, routing number, and account number. Everything happens digitally using an online solution like PostGrid. Hence, businesses don’t need special equipment or a complicated setup to make payments.
