Electronic Check Payment

Like many small businesses across America, I use QuickBooks to manage my accounting. While it’s sometimes buggy, overall it’s a great application. So, when I got a message to setup online payments for my customers, I thought it sounded like a win. Customer’s wouldn’t have to deal with writing a check, and I’d get my money quicker. Or would I?

I typically bill customers at the end of the month. So, when October 31’s rolled around, I sent bills to all my customers. It was the first time I enabled electronic payment services, and one of my customer decided to take advantage of that service. In fact, he had paid me within 2 hours of receiving the invoice! I was excited, and eagerly waiting for the money to appear in my bank account. And I would be waiting for an entire week. That’s right. In a world where I can email someone in China within minutes, or call someone in Australia right now, it takes a week for money to electronically transfer to a bank across the city.

This isn’t the fault of QuickBooks. When I went back to their terms, I found out that 5 business days was the expected turnaround time. But for the $10 fee they charged me, I actually waited longer for the check to clear than I would have if the customer mailed me the check to manually deposit in the bank.

How is this even possible today? How is it that banks – where I can withdraw money at an ATM anywhere in the world, won’t let me move money electronically in the same time period?

Well, as it turns out, I actually received an email from QuickBooks today – their new service will offer next-day payments. Thank you, QuickBooks, for bringing payment services into the 21st century!

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