The Different Types Of Check: How Do I Know Which Is Best For My Business?
The check has been around since 1659, and in the massive amount of time since its birth, it’s grown a lot. Like most payment methods, the check has been modernised and updated, and that comes with a whole host of benefits and options.
So, if you run a business, what types of check are available to you? Start-ups in particular can make the mistake of not staying well-informed on the subject of payment methods. Checks are no exception, so spend some time to brush up!
Below, you’ll find a rundown of the most common types of check in existence, so you can decide what’s right for you and your company.
Type #1: Personal Checks
A personal check is the most common kind, and would be suitable for the individual as well as the self-employed, small business owner. There generally aren’t any monthly fees, but there can be usage caps that incur a fee if you exceed them. You can send payments in a secure fashion with no transaction fees and ease of use.
Type #2: Accounting Software Checks
Most businesses will utilise some form of accounting software, as it’s a good way to help keep track of everything. It’s especially useful if you’re a larger company with a lot going out and a lot coming in.
Some checks are popular with companies who use accounting software like Intuit and Quickbooks, such as Intuit checks. If your business is invested in software, you should research the ways your payment methods can complement it.
Type #3: Business Checks
Businesses will usually have a business checking account, and that’s where business checks come in.
The owner of the account will pay for goods, services, payroll and expenses with business checks, from the checking account.
A lot of banks will charge a monthly fee for business checking accounts, so the use of business checks could prove slightly more expensive. You may also have a limit to the number of checks you can write per month, so bear that in mind.
Type #4: Traveler’s Check
A traveler’s check is most often used as a replacement for regular currency. As the name implies, this would be used for individuals who are travelling abroad to foreign countries.
As a business owner, you may have to make many foreign trips and keeping track of different currencies can be a pain.
The traveler’s check is a lot more secure than carrying foreign currency around, for obvious reasons. If you lose money, it’s not coming back, but if you lose a check, it can be cancelled and a new one can be re-issued. If your business frequently needs trips to foreign countries, traveler’s checks could be a handy solution for you.
So, that just about does it! It’s vital that you take the time to assess your options. With different fees, uses and usage limits, there is a different option that works for every kind of company. Remember, not every option works for everyone, and popular doesn’t equal quality. So find the right one for you!
