How Much Does it Cost You When People Pay by Check?

Paying by:

Let’s say there is only one check left that you have to issue because the vendor doesn’t accept anything besides cash and checks. It’s every month.

  1. Check

Total of $3.426/month ($41.112)

Cost of check – 80/250 ($80 for 250checks) = $0.32

Person ordering the checks and when they come unpacking and storing them in locked drawer or in safe  (15min and they make $15/hr. and there are 250 checks) = $0.016

Person writing the check (unlocking safe, writing a check, putting in envelope and mailing it out with standard stamps $15/hr. 10min) = $3.09

Let’s just say the person doesn’t need to go to the post office because mailman will come and get it.

  1. Card

Total Cost $0.104/month ($1.25 year)

Set up autopay and let’s say you have to update your card once a year.

Person who sets it up 5min $15/hr. = $0.104/month = $1.25annual


Now let’s reverse that and say that you have one customer who pays you by check. How much does it cost you? Average transaction in veterinary practice is $168, let’s go with that number.

  1. Check

Total of $9.25

Person opening mail, documenting the receipt of the check and handing it to accounting personnel. $15/hr. 10min. =$1.25

Person recording the check 15/hr. 2min = $0.5

Person going to the bank to deposit check. 15hr/30min = $7.50

  1. Card

Total of $5.672

Person swiping the card – 2min =$0.5.

2.9% +30c per transaction = $5.172

What else?

If the card gets stolen, you dispute a transaction and get a new card. With lost checkbook, your whole account number is exposed!

You get paid faster. Who wants to wait for check in the mail or wait if it even clears?


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