In today’s era of flourishing small businesses and individual owners, the concept of a one-man army has led the way. However, easier said than done, it requires a lot of time, effort, and consistent multi-tasking.
Now, you may think that in this era of modern technology one can rely on automation and ease the work. Nevertheless, every work has some or the other component that requires human intervention or high cost.
For instance, if you use check printing software, you might need labor to operate the machinery. Additionally, you would need materials and equipment to print and mail alongside postal charges, power charges, security charges, etc.
Therefore, a better approach to handle such things is outsourcing the payment printing and mailing services. We will, in this article, discuss some advantages that outsourcing may offer you and your business.
Cost Cutting
One of the best ways to save money especially if you have just ventured into the business is to outsource payment processing. Outsourcing check printing and mailing can save you around 20-30% of your costs.
The quality of checks is automatically elevated as they use good products required for producing the needful. One of the main reasons for opting for outsourcing is that printing and mailing are not core competencies of a company.
So, what you pay to the vendor will be much less than what you spend on the in-house expenses. Transactional print and mail companies work at enormous volumes, and their whole focus is on producing for their customers. They receive the greatest pricing for supplies and postage, so the cost per piece will be lower.
Elevated Security
You might wonder that sharing data with a third party can be risky. Fortunately, it’s the opposite of what you think.
Hiring companies who work with things such as transactional print and mail have robust data and physical security which protects the data. Allow a firm that prioritizes electronic security and ensures the measures required to protect your financial information from cyber theft.
Moreover, according to SmartPayables, many companies are HIPAA (Health Insurance Portability and Accountability Act) certified to handle sensitive information. So if, in some cases, you require to share confidential data, it is one of the safest ways to do so.
Boosting Accuracy
Check printing and mailing errors are far more common than you might think. These mistakes might have an impact on your compliance record and company reputation.
Unless you have standardized processes and checks and balances in place, your risk of mis-mailing may be higher than you realize. And this can be tackled if you outsource these processes.
Additionally, outsourcing payment processing enhances your internal controls. Using a reliable third-party source separates key financial tasks, which helps prevent or eliminate fraud.
Check fraud is among the most common forms of financial fraud. It might come from within the organization or from third-party vendors posing as authentic. Most in-house payment departments cannot commit as much time and resources to fraud prevention as a neutral, accredited firm.
Frequently Asked Questions (FAQs)
What about the cost of outsourcing check printing and mailing?
The cost of outsourcing check printing and mailing will vary based on factors such as the volume of checks, customization needs, and the service provider’s pricing structure. It’s advisable to request quotes from multiple providers and compare their pricing and services to find the best fit for your budget and requirements.
How are check errors or issues handled when outsourcing?
Reputable service providers have dedicated customer support teams to address any issues or errors that may arise during the check printing and mailing process. They typically have procedures in place to rectify errors promptly and provide assistance when needed. You should inquire about their customer support processes before finalizing an outsourcing agreement.
What happens to unused or spoiled checks when outsourcing?
Unused or spoiled checks can be handled based on the policies of the outsourcing service provider. Some providers may securely destroy unused or spoiled checks to ensure they are not misused. Others may return them to your business for proper disposal. Discuss this aspect with the service provider to understand their policies.
Are there any legal or compliance considerations when outsourcing check printing and mailing?
Yes, there may be legal and compliance considerations when outsourcing check printing and mailing. Depending on your industry and location, there may be specific regulations governing the handling and distribution of checks. It’s important to choose a service provider that complies with relevant legal and industry standards to ensure compliance and avoid any potential issues.
Outsourcing check printing and mailing can provide numerous benefits to businesses seeking a streamlined and efficient approach to managing their financial transactions.
The ability to customize check designs and the assurance of accuracy through quality control measures further add value to the outsourcing arrangement.
While considering legal and compliance considerations, it is important to select a reputable service provider that aligns with your specific business needs and industry regulations.
