The real cost of paper checks—and why B2B finance teams are moving on

Check stock, envelopes, and postage: $2-3 per check

This is the only cost most people think about, but it’s just the beginning. Secure check stock, matching envelopes, and first-class postage (especially for expedited or certified mail) add up quickly across hundreds of monthly transactions.

Staff time (printing, signing, mailing, reconciliation): $10-12 per check

This is where the real expense hides. Every check requires printing, manual signature or authorized stamp, envelope preparation, trip to the mailbox or post office, entry into accounting systems, and reconciliation when it clears. At an average of 20-30 minutes of total labor per check, the personnel costs dwarf the materials.

Bank fees and storage: $2-3 per check

Banks charge fees for check processing, positive pay services (fraud protection), and maintaining adequate check stock inventory. Physical and digital storage of check copies for audit and compliance purposes adds ongoing costs.

Fraud losses (averaged across all checks): $1-2 per check

Not every check is stolen or altered, but when averaged across all transactions, fraud losses represent a measurable cost that digital payments virtually eliminate.

1. Fraud has become sophisticated and pervasive

The AFP 2024 Payments Fraud Survey found that 63% of organizations experienced check fraud attempts, up from 44% in 2020—a 43% increase in just four years.

Mail theft rings now use chemical “check washing” to alter payee names and amounts, sophisticated forgery techniques, and organized networks that target business mail. Unlike digital payments with encryption and multi-factor authentication, paper checks are vulnerable at every physical touchpoint—from your office to the postal system to your vendor’s mailbox.

2. Vendor expectations have fundamentally shifted

Most B2B vendors now prefer electronic payments, which means faster access to funds, easier reconciliation, and better cash flow management. The generational shift matters too.

According to Ardent Partners’ 2024 AP research, finance managers under 40 are 3x more likely to demand digital payment options from their partners. As younger finance professionals move into decision-making roles, paper checks are increasingly seen as a red flag indicating outdated systems and processes.

3. The ROI is undeniable and immediate

When organizations transition from checks to ACH, credit cards, or virtual cards, they eliminate hard costs tied to printing, postage, and manual processing, while also reducing soft costs like exception handling and fraud remediation. Over time, these savings compound through faster processing cycles, improved cash visibility, and lower operational risk, transforming payments from a back-office cost center into a measurable efficiency lever.

ACH transfers: The workhorse replacement

With 1-2 day settlement, ACH handles the bulk of routine payments. ACH is reliable, cost-effective (typically $0.20-0.50 per transaction), and widely accepted. Best for recurring vendor payments and mid-sized transactions.

Virtual cards: Fraud protection plus rebates

Single-use card numbers that offer fraud protection plus 1-2% rebates. Ideal for supplier payments where you want extended float and earning potential. Many procurement teams now generate virtual cards directly from approved purchase orders.

Payment platforms: All-in-one solutions

Comprehensive platforms that manage invoice approval workflows, support multiple payment methods, and integrate with accounting systems. These work especially well for companies that want to offer vendors choices, allowing each vendor to select their preferred payment method while the finance team maintains a single, centralized platform.

Embedded payments: ERP-native solutions

Some ERP systems now integrate payment functionality directly, eliminating the need for separate platforms and creating seamless workflows from invoice approval to payment execution.

Digital-ready vendors

Modern accounting systems, younger businesses, tech-savvy operations. Move these vendors immediately—they’re waiting for you to offer digital options.

Fence-sitters

Willing but need nudging. These vendors will transition with the right incentives and clear communication about benefits.

Resisters

Prefer checks, have security concerns, or lack infrastructure. Maintain checks temporarily for this group while you focus on higher-impact opportunities.

Months 1-3: Move your top 20% of vendors by volume

These relationships matter most and usually represent 80% of payment value (Pareto principle in action). They’re often the most sophisticated vendors and the easiest to convert. Focus here first for maximum impact.

Months 4-9: Target mid-tier vendors with incentive programs

With your top vendors successfully transitioned, you have proof points and refined processes. Launch broader outreach with your incentive programs. Aim for 60-70% digital payment adoption across your entire vendor base.

Months 10-18: Work through the long tail

By now, you have success stories, polished communications, and streamlined enrollment. Some vendors may never convert—and that’s okay.

Operational muscle memory

Your finance team develops digital-first workflows and analytical capabilities. By the time competitors catch up on technology, you’re optimizing processes they’re just implementing. This creates a permanent operational advantage.

Vendor relationship capital

Vendors who’ve experienced your fast, reliable digital payments don’t want to regress to check-based processes. This creates subtle but real switching costs for competitors trying to win your business on payment terms alone.

Data infrastructure and intelligence

Two years of digital payment data enables sophisticated analysis that’s impossible with check-based systems:

This intelligence compounds over time and becomes a strategic asset.

Talent attraction and retention

Top finance talent doesn’t want to work with outdated systems and manual processes. Digital payment infrastructure signals a modern, efficient operation that values employee time and professional development.