The technological changes have impacted various departments in the trucking industry including money transfers and carriage. In this article, Tetra Capital president, Jeremy Robison, discusses the benefits of replacing paper checks. According to the PYMNTS Disbursement Satisfaction Index reports showed that consumers prefer other payment methods to checks. They use direct deposit, electronic cards, and cash.
Businesses have the same feeling about checks. The method is prone to security issues and delays payment due to holidays, natural disasters, or storms. These demerits make it a challenge for truck drivers and motor carriers who are in transit for long periods and cannot access their emails. It is important to plan ahead of time to ensure compliance with fleet regulations. Outlined below are payment alternatives to paper checks ideal for these professionals.
Direct Deposit/ Automated Clearing House
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Automated Clearing House (ACH) involves cash deposited directly to the account of a receiver. The initiating company meets the charges and it takes around three business days to complete. Recipient must provide bank routing number and account number to receive the finances. Activate deposit alerts to receive notifications after every deposit to your account.
Wire Transfer
The approach involves an immediate transfer of money from one bank account to another. Recipients receive their funds immediately. Initiating firms incur higher fees to ACH option and the receiving company also has to pay some charges. Recipients in the truck fleetmust provide banks routing number and their account number to receive funds.
Fuel Card
Fleet fuel cards are attributed to many cost-saving advantages like fuel discounts. It is not a payment method to clients, but a perfect solution for drivers on the road. They have available money to use even in remote areas to fuel and service vehicles. No transaction fee incurred when crediting the cards.
Money Transfer Checks
The transportation industry uses Electronic Funds Source (EFS) and Comcheks money transfer checks. EFS checks require the users to have an issue, transaction and authorization numbers. Fees charged depend on the initial and recipient companies. Trucking firms use EFS checks to make and receive payments. Fueling stations, maintenance shops, and truck stops accept these checks.
Comcheks are mostly used by brokers, shippers, and factoring companies to pay motor carriers. Truck drivers can pay maintenance and fuel costs through the same checks. You can cash them at a truck stop or deposit them directly into your business account. Issuing party must be a member of Comdata.
Credit Card Payments
The payment method is common to businesses and personal expenses. It includes a transaction fee. Check with your bank what you need to start using this convenient payment method. Some require a company to have special equipment, website or an application on computer or mobile device.
Online Payments
Online payments are another way of taking credit cards that come with lower charges and equipment costs. Various entities offer these services with different requirements, expenses, payment and withdrawal methods. PayPal, Intuit GoPayment, and Square companies offer online payment solutions.
Businesses should check the cost of a payment method before using it. Replacing paper checks with electronic methods allow for fast and secure transactions. Truckers can service their fleet along the way without worrying about a bank.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.
