EFT payment method; Why would you still use Cheques and Mail?

E

economy

Active Member
Feb 1, 2011
288
134
43
Concord, Ontario
15
Hi all,

Although, around 30% of our clientele is already using the EFT (Electronic Funds Transfer) as payment method, and more and more companies are moving towards to quit on issuing and mailing the CHEQUES, we still encounter overwhelmingly large number of Brokers hesitant even to look towards EFTs.

We have a hard time to understand why businesses in year 2020 are stuck on CHEQUES and MAIL? We really would like to hear from those on this forum who stuck on CHEQUES.

Isn't time to finally realize that cheques are nearly obsolete, cash is on the way to be obsolete. There is so much talk about COVID-19, stay home, social distancing, etc. Majority of companies we make collection calls to state that staff is working remotely from home, yet continue to be stuck on cheques and mail; one person have to issue and print the cheques, other have to sign it, third need to mail it. If global pandemic is not good enough of a reason to move to EFT payments, perhaps it's time to realize that EFTs are much cheaper than the cost of the CHEQUES and MAIL. Moreover, EFTs are much easier to manage saving a lot of time, just takes you seconds to complete and there is no need to monitor your account for days for whether or not cheque was cashed; oh, there is a word for it - COST-EFFECTIVE. It's time for our community to finally step into the 21 century!
 
  • Like
Reactions: Igor Galanter, KeyFactor, Grandpa and 1 other person
You would be surprised how many people want a cheque over EFT, we basically force everyone to EFT payment or quit doing business with them .
 
I pay all my carriers and vendors by bank transfer, it is much cheaper and quicker and nothing can get lost in the mail. Although I encourage my customers to pay via bank transfer most still pay by cheque and that is frustrating as sometimes they have to stop a payment and reissue another cheque that was never received.
 
A check mailed to a Canadian addess costs 90 cents to mail plus the cost of the check itself and the envolope.. A check mailed to the US cost $1.30 plus the cost of the check and the envelope. How much is an EFT by comparison?
 
Last edited:
EFT cost us $0.50; I am hearing that it might be even cheaper depending on the volume of payments.

If the bank information of the payment recipient is entered correctly, there is no weird staff happening; we tested it for years.

Its extremely easy to schedule the payments to be made any date.

Funds are coming off your account immediately so you don't need to spend your time tracing the cheque being cashed.

I would never accept the emailed cheque image for deposit, unless it is an electronic cheque, as its a remedy for disaster.

WELCOME TO 21ST CENTURY!
 
  • Like
Reactions: doxilica
Thanks.. I'll look into it. If its really cheaper I'll go for it. Cost would really be the only reason as mailing checks has worked for decades and no point in fixing what ain't broke (unless its cheaper)..
 
Can anyone advise on an online international wire service that connects to our account at TD? I am having difficulty finding one. Thanks!
 
TransAction said:
Can anyone advise on an online international wire service that connects to our account at TD? I am having difficulty finding one. Thanks!
Click to expand...

TD !!! ... They have banks in the U.S. One of the simplest CDN/US transactions in the marketplace.
BMO has Harris.
RBC has someone as well ... can't recall who though.
No idea what CIBC and Scotia have.
 
  • Like
Reactions: Freight Broker
So if your getting paid from a US company you can still receive CDN funds in your TD account EFT?
Can they send transfers from a TD in USA?
 
There are few third party EFT payment processors considerably cheaper than the 5 banks with a low nominal monthly subscription fee and $0.50 fee per EFT. One of the largest in country Telpay and Western Union, check the out. There are also others, however, from these two we are receiving payments for years.

As for electronic payments from USA to CAN, Americans use ACH, Canada is EFT, these are different systems and we rarely find US based companies with capabilities of making electronic payment to Canadian banks. Hopefully things will change in the nearest future.
 
Just recently was dealing with this issue.
My lovely cousin in NY, NY had her birthday and I planned to EFT some USD as a gift.
Apparently, at TD Bank EFT only include my accounts in CAD, but not in USD.
Had to do wire transfer with an option to pay 25 USD or 30 CAD for transaction. Chose local coin.
Or I don't know something?
 
  • Like
Reactions: Freight Broker
I've had the same issue. Sending a check in the mail has been the cheapest option so far.. even if it does brand me a dinosaur. I'm sure that over the next few years the bugs will be worked out and it will be cheap and easy to etransfer funds.
 
You must log in or register to reply here.
Top Bottom