Cost of electronic payment verses sending a cheque

Freight Broker

Freight Broker

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Sep 12, 2009
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I'm looking at electronic payments to replace what I'm currently doing which is sending checks out in the mail. 90% of my checks go to the US while 10% go to Canadian carriers. How does the cost of sending payments electronically compare with sending checks the old fashioned way?
 
if you are a Canadian paying a Canadian it's easy and sure cost savings (EFT).
from an American to an American also easy and cost savings.
but so far when we want to get paid by an American it isn't as easy or it cost money for them to pay you and for you to receive the payment.
oh and yeah sure cost savings but if you are using a lot of different carriers like one shot deals left & right, the setup alone is not worth the cost savings
if you setup a regular carrier to send them payments often yes for sure it's great
 
The most cost effective way to pay US Carriers is from a US based bank account in USD. Sending ACH, Wires, or SWIFT from Canada to USA is not exactly cheap, however USA to USA ACH is much more cost effective for a canadian company.

Definate significant savings to be had. The large majority of vendors on file with us are paid electronically, and ~85% of our clients remit payment to us electronically. When you have north of 4000 clients , the saving are huge, especially when you are factor in processing your receivables in chq form.

We are moving towards 100% electronic. out of 4000 clients or so, we have less than 25 that actually need hardcopy POD's... electronic POD's and scans in PDF form are the norm for us now.
 
Thanks for all the input. I've paid electronically a handful of times because my carriers (in the US) asked me to. In all cases the transactions were prohibitively expensive, but its been a few years. Thus far I haven't had any request for electronic pay, and my own accounts all pay me via check through the mail. Maybe the US is behind the times on this. What prompted my question this morning was a recent article in Trucknews.. the lady who owns GX Transport is quoted as saying that over 90% of her pays are electronic. The other thing of course is the mail.. if Canada Post shuts down for any length of time I'll need an alternative means of getting my carriers paid. For now the manual checks in the mail seem to work just fine.. but I'm a dinosaur I guess.
 
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FreightBroker,

Shameless plug to follow;

If any carriers on this site need to send payments via courier, if and when the Posties end up getting locked out, then I'm sure A&B Courier would be able to assist in servicing any worldwide location for invoice payments or chq pickups.

We can't courier documents to North Korea or Iran, but to or from the rest of the world is fair game.
 
I believe most customers are paying us electronically. Where I am now everything is being paid by cheque but I'm sure that will change soon too.
 
EricG said:
FreightBroker,

Shameless plug to follow;

If any carriers on this site need to send payments via courier, if and when the Posties end up getting locked out, then I'm sure A&B Courier would be able to assist in servicing any worldwide location for invoice payments or chq pickups.

We can't courier documents to North Korea or Iran, but to or from the rest of the world is fair game.
Click to expand...
Dammit... no service to N Korea or Iran?? Ha ha.. Thanks will keep your company in mind for courier services.
 
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