There are many reasons why payment by cheque is still used on a worldwide scale across the globe. It offers benefits that cash cannot give to the payer or the recipient especially in the field of business.
- A cheque is a form of payment that is traditional and reliable:- This method makes the use of a small paper document to carry out money transactions. It is, assuredly, the most trusted method for payments and money transactions since only the recipient will be able to cash the cheque in a legal, financial institution. The only requirement is proof of their identity.
- A majority of businesses issue cheques to tend to financial obligations to other departments:- These financial obligations can be anything from interest payments, government tax liabilities, money transactions to lenders, etc.
- The perfect way to make your money secure is by carrying out transactions in the form of cheques:- For instance, it is safer to send cash through the mail than if one were to send some money. Another reason why cheques are much safer for business transactions is that they’re traceable. The bank makes a copy of every cheque that one uses. The record for payment is registered in a reliable place. One can also find proof of the cheque on their online banking app.
- An attractive thing about cheques is the presence of timing:- It generally takes businesses and such platforms at least a day or two to cash in the cheque that one has written for them. This gives them ample time to make sure they have enough money in their accounts to make the transaction possible.
- Paper Trail:- Cheques have a paper trail left by them after using them. This makes it advantageous to use as compared to cash. Each cheque makes a paper document which has the details of the day of payment, the receiver of the payment, and the amount to be paid. The company can keep a record of the cheques that cleared the banks along with necessary information about the person or the company who wrote the cheque. Some companies prefer to use a copy of the cheques for the sake of keeping records.
- Secure:- Cheques ensure added security for payments and transactions. The one who has his name written on the cheque can only take the cash from the cheque. In case the recipient claims to have never gotten the cheque, the company can contact the bank to verify it. Any kind of disparity can be solved directly with the bank.
- Control:- Cheques provide control of the payments made in businesses. One employee has the job for authorizing a cheque, that is written, after correcting the backup documentation. Another employee has the job of printing the cheques. An employee signs the cheques to be sent. Including three people in the process ensures that there is no fraud or foul play.