Canada Post strike; Payment delivery

economy

Active Member
Feb 1, 2011
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Concord, Ontario
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Hi all,

Just wondering how nowadays all are handling the payment receipt from the Canada Post dependent partners, partners who are responsible to timely deliver the payment. Please do not suggest that I should arrange and pay for the courier as I believe that any creditor should not bear the cost nor make the arrangements for the payment delivery to them.

Our current ratio is about 60/40, 40% are still issuing the bank cheques. Majority, 99% of USA based partners are paying via mailed cheques. Just wondering what are you saying to your partners? What is their reaction to the subject? I already had this conversation twice today; the reaction was a crappy one: "Arrange for a cheque pick up".

Thank you all for your feedback
 
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First thing that came to my mind when I saw the post going on strike...gonna be a tough one. And its going to be a back log of mail once they start processing again, I expect a few new cheques needing to be cut cause they are going to be lost.
 
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If the strike lasts for a couple weeks, I plan on running to Buffalo to drop checks in the mail for my US partners. As for collecting, I have already informed my cheque paying customers to call me when a cheque is ready for pick up. Luckily they are all Canadian based. Depending on who, value of the cheque, proximity to us, we will determine if it should be picked up, sent by courier or sit on their desk for now. Back in 2011, and, 2018 we had an employee take a company vehicle and run around picking up what they could.

I must say, I am shocked at your 60/40 payment ratio. We are probably at 90/10 or more. I've never asked. I just assumed that to be the norm in todays EFT age.
 
@economy Get a US Postal Address asap, have your American client mail chqs via USPS to your USA post office box... Get the post office box company once a week for forward all mail/documents/envs via FedEx or UPS next day back to your Canadian address. Your disruption/delay will not exceed 3 business days if you go with a setup like this. Consolidate your northbound shipping from your PO Box, weekly, or more frequently if you have higher volumes of inbound mail.

Obviously the creditor should not be responsible for shipping costs for payment of invoices, whoever, be ready for the fun and games that come with ya don't want send in a courier like UPS / FedEx, etc.

Absorbing $50 fedex rate once a week for your N/B mail consolidation is better than for every USA payment you want to collect in a timely fashion.
 
If the strike lasts for a couple weeks, I plan on running to Buffalo to drop checks in the mail for my US partners. As for collecting, I have already informed my cheque paying customers to call me when a cheque is ready for pick up. Luckily they are all Canadian based. Depending on who, value of the cheque, proximity to us, we will determine if it should be picked up, sent by courier or sit on their desk for now. Back in 2011, and, 2018 we had an employee take a company vehicle and run around picking up what they could.

I must say, I am shocked at your 60/40 payment ratio. We are probably at 90/10 or more. I've never asked. I just assumed that to be the norm in todays EFT age.
@TMLJ13 Why drive to Buffalo? look up a company called Chit Chats, they will inject your mail for you at rate cheaper than the gas you will burn to Buffalo. There are a few USPS injectors based in Toronto, quick google search will land you a few. We've worked with Chit Chats, so I can speak to their service being on par.

 
This discussion takes a wrong turn. I am not concerned much about mail delivery from USA.

My question was about how do you handle the conversation with the Canadian brokers/vendors who simply refuse to pay EFT electronically. I had a couple of responses today that I have to make the arrangements to pick up the cheques from their office. They simply fail to acknowledge that it is their responsibility to timely make the payments. How do you handle such conversation? What do you say to convince them to pay electronically? JUST LOOKING FOR SOME TIPS.
 
For those companies that are not interested in EFT payments I would suggest that you mention that cheques are the way of the past. A company using cheques are certainly a minority in the payment processing department. A vast majority of companies have migrated to EFT payments because it is cheaper and a much more effective way of processing payments. Now is a perfect time for any company to get onboard.

Then mention that you hope that they would at least pay by e-transfer while the strike is ongoing. They don't pay their hydro, taxes or phone bills by asking the vendor to come pick up their cheque - why would I be any different.

Finally, I guess it's important to identify what kind of customer it is, but you could mention that those who pay by cheque and snail mail are exposing themselves to lost mail, cheque fraud and other concerns. I don't know if I want to continue to do business with a company who is exposing themselves to this risk plus the added costs mailing cheques, printed cheques and the envelopes. I will note it on your profile that you are unwilling and we will see what happens during our reviews.

In my opinion, companies that are adamant of sticking with cheques in 2024 are using this method to extend their payables and float their cash flow. That's a thing of the past now.
 
This discussion takes a wrong turn. I am not concerned much about mail delivery from USA.

My question was about how do you handle the conversation with the Canadian brokers/vendors who simply refuse to pay EFT electronically. I had a couple of responses today that I have to make the arrangements to pick up the cheques from their office. They simply fail to acknowledge that it is their responsibility to timely make the payments. How do you handle such conversation? What do you say to convince them to pay electronically? JUST LOOKING FOR SOME TIPS.
I would simply not do business with someone who is adamant on paying via cheque. A shipper/ direct customer, i understand that will be a much harder conversation.

But any broker who is still paying via cheque, would be cut off.

It is outdated and as Jim said, simply a way to extend their payable terms.
 
@TMLJ13 Why drive to Buffalo? look up a company called Chit Chats, they will inject your mail for you at rate cheaper than the gas you will burn to Buffalo. There are a few USPS injectors based in Toronto, quick google search will land you a few. We've worked with Chit Chats, so I can speak to their service being on par.

@EricG ...I can hit the Olive Garden with the better half. I know its not real Italian. Its like McDonalds. I jones it every once in a while. I get it, then I am good for 6months! LOL. Your lead on Chit Chats is a good one though.
 
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@TMLJ13 Olive Garden now there is a place I haven't been too in decades. Last location I visited was at Hwy 7 & East Beaver many moons ago.
 
For those companies that are not interested in EFT payments I would suggest that you mention that cheques are the way of the past. A company using cheques are certainly a minority in the payment processing department. A vast majority of companies have migrated to EFT payments because it is cheaper and a much more effective way of processing payments. Now is a perfect time for any company to get onboard.

Then mention that you hope that they would at least pay by e-transfer while the strike is ongoing. They don't pay their hydro, taxes or phone bills by asking the vendor to come pick up their cheque - why would I be any different.

Finally, I guess it's important to identify what kind of customer it is, but you could mention that those who pay by cheque and snail mail are exposing themselves to lost mail, cheque fraud and other concerns. I don't know if I want to continue to do business with a company who is exposing themselves to this risk plus the added costs mailing cheques, printed cheques and the envelopes. I will note it on your profile that you are unwilling and we will see what happens during our reviews.

In my opinion, companies that are adamant of sticking with cheques in 2024 are using this method to extend their payables and float their cash flow. That's a thing of the past now.
Thanks Jim; great points!

In current reality, we as a factor serve various carriers who in turn deal with hundreds of brokers. We find it that many Brokers with middle eastern background are simply refuse the idea of making the EFT payments, I just can't get through those sculls. On the other hand, I can name a few active participants on this forum who are also continue to refuse to switch to EFT.

Hopefully, the current strike would finally convince them that it is time for changes.
 
If the strike lasts for a couple weeks, I plan on running to Buffalo to drop checks in the mail for my US partners. As for collecting, I have already informed my cheque paying customers to call me when a cheque is ready for pick up. Luckily they are all Canadian based. Depending on who, value of the cheque, proximity to us, we will determine if it should be picked up, sent by courier or sit on their desk for now. Back in 2011, and, 2018 we had an employee take a company vehicle and run around picking up what they could.

I must say, I am shocked at your 60/40 payment ratio. We are probably at 90/10 or more. I've never asked. I just assumed that to be the norm in todays EFT age.

go 2 Chit-Chats or Stallion Express (the clvs carrier) (I helped them open up their first warehouse) - they will ship direct USPS from GTA.
 
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With so many efficient ways to pay people, for small sums (under $50k) why would anyone cut a cheque any more? It's absolutely to buy time.

I've even heard of people running their envelopes through their stamp machine (which date stamps the envelope), then hanging on to that envelope for 1-3 weeks before dropping it in the mail. They can state the date it was 'mailed' with utmost confidence, because of the stamp on it. Pro tip: Canada Post also stamps that envelope when they receive it, right?

Outside of Transport: We pay every single vendor by EFT or other electronic format. Mind you, our customers placing deposits because it could be $100k-$2mil often is a bank draft. We're ok with that.

Keep well,
Mike
 
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Most of my customers pay via EFT..I pay most of my carriers via check. The reason is that a check is cheaper, especially if it is a payment to an American entity/carrier. Keep in mind that banks in the US are small and generally localized and thus perhaps not as sophisticated as an RBC or a BMO…when you get into the southern hinterland.. the backwoods of Mississippi, Alabama etc.. you may get people who have no idea what an EFT even is. But everyone knows what a check is. The other thing..and it’s important, the EFT isn’t without its flaws. I routinely get deposits that aren’t mine..to the tune of tens of thousands of dollars a year. It’s a pain in the behind to sort out..I'm sure that everything is going electronic, and that checks will soon be a thing of the past..soon AI will be sending EFTs to the “cloud” for processing, and we’ll all be so much more efficient and happy. For us older foggies like me who still think of clouds as those white puffy things in the sky that occasionally give rain.. well.. it's just one more thing we have to catch up on.
 
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Seems like this strike is lasting longer than expected, how is everyone dealing with their US payments? seems like everyone is using snail mail to pay Canadian carriers.
 
Most of our customers here in Canada pay by ETF. Our US clients were notified before the start of the strike to not put anything into the mail. We now have them set up for a courier pickup and we might keep that system when or if the strike finally gets settled. Receiving mail from the US when there is no postal strike is only marginally better than when there is a strike!