On March 31, 2014, businesses sending cheques will see their costs for stamps increase by between 19-35%. The price of stamps and cheque related fees are constantly increasing, so the announcement of a price increase did not come as a surprise. What was surprising was the dramatic increase of stamps – as much as $1.00 when purchasing a single stamp.
The good news is that for businesses already sending electronic payments there will be no cost impact on their business. On the other hand businesses using regular mail will see a dramatic cost increase.
Even before this price increase, the cost to send payments electronically is considerably less than regular mail. When you factor in other cheque-related costs such as envelopes, cheque stock, cheque clearing fees, manual processing time the cost differential is alarming. When you add them all up the cost to send a single cheque in the mail could reach $2.00 or more. Compare that to sending a payment electronically at 50 cents, that’s a difference of 300%!
What’s more, history has shown that the costs for electronic payments will continue to decrease. As more businesses switch from cheques to electronic direct deposit payments basic economics dictates that the price will continue to fall. Conceivably, sending and receiving payments electronically could one day cost pennies. Imagine eliminating wasteful processes involved in cheque processing and reducing the negative impact on your bottom line caused by high credit card fees.
With Telpay, a business can send payments to any supplier virtually eliminating cheques and the manual processes that go along with them. Telpay’s unique electronic payment system makes it possible to send payments to every supplier in Canada. Telpay will collect their bank account information – making it easy to ‘go electronic’.
Send money electronically to any bank account in Canada and into international accounts (including $US dollar accounts) and break free from the cycle of rising postal fees and cheque related costs.