If you are a broker, you’re all too familiar with writing checks to carriers and factoring companies for load payments. Care to take a guess at the cost to send each check? 50 cents? 70 cents? Try a whopping $11 per check1 you issue!
Let’s say you’re processing 1,000 loads per month… If you issue 80 percent of carrier payments via check — at $11 cost per check — then you are spending $105,600 per year, just to send money!
Wondering how a check can cost you $11 to process? There’s a great deal more involved than the cost of the stamp and envelope. If you follow the path of drafting, sending, and reconciling a check to a carrier you can see the life of a check takes several twists and turns that end up costing you more than you realize.
There’s a laundry list contributing to that cost of $11 per check, including:
- Logo printing on your company’s checks and envelopes
- Time spent working with the printer
- Shipping costs to have your checks and envelopes delivered
- One of your employees manually adding checks to the system
- Back office time spent to print out carrier checks
- Time spent by you or an employee to sign checks
- An employee’s time to fold the checks and place in envelopes
- Time spent by an employee to place stamps on envelopes
- The cost of the stamp
- The time spent to deliver checks to the Post Office
The costs that pile up when writing checks are compelling, but if you need one more reason to re-think your payment process, consider this: Did you know that there are more than 500 million forged checks annually2 in the United States? Because of demands on law enforcement, prosecutors fail to pursue 75 percent of bank check fraud cases. This leaves most matters to be settled between the involved parties. This means YOU!
So, what’s the solution to payment pain points and risks? An automated payment process.
If you’re serious about finding ways to generate more revenue, save on back office costs, and minimize your fraud risk then look for an automated payment process. The ideal solution is LoadPay. An automated payment solution, LoadPay is designed specifically with the transportation industry in mind.
LoadPay can turn your carrier payments into profits:
- Enjoy zero ACH transaction fees.*
- Save 2 percent when you and your carriers participate in PayMeNow™!
- Reduce your risk of fraud and account takeover.
- No contracts! No sign-up or termination fees! No maintenance fees!
- Say goodbye to factoring headaches and time-consuming payment inquiries.
LoadPay helps you minimize fraud risks and overhead costs by collecting and storing your carriers’ financial information and completing load payments. This means less data entry, fewer mistakes, less printing and mailing, and fewer hours spent dealing with carrier payments.
LoadPay accounts are free. Sign up today at https://app.loadpay.com/Account/register.
Say goodbye to $11 checks and hello to LoadPay!
1 Source: “Have You Heard of Freight Invoice Auditing?,” Garry Oswald, Quality Digest,
2 Source: “Check Fraud Statistics and Techniques You Should Know About,” Relyco,
* Does not apply to same day ACH payments.