If you run any type of business and you accept checks, you should definitely invest in a check reader. Merchants that have invested in a check reader have been able to cut their expenses related to checks that could not be authorized once they got to the bank. With a check reader, you can authorize checks on site. so you are sure that you will get your money, instead of receiving a handful of checks back at the end of every week.

Check processing rates and fees include:

• 1.79% rate for retail transactions
• 2.19% rate for phone and internet orders
• 2%–11% for high-risk ACH transactions
• $0.25 transaction fee
• $10.00 monthly fee

If you don’t want to invest a lot into the purchase of a check reader, you don’t have to. There are many different units out there to choose from ranging from $100 and up. Many check readers are a part of a unit that can process credit cards as well as checks, and this is a great way to make the investment worthwhile. Many merchants find that it is best to have a check reader at each register, but it’s not mandatory. If you want to give the check reader a try and see if it is something that you should invest in for each register, you can always opt to buy one now and then invest in more in the future, if you find that it saves you money.

Bounced checks have long been a problem for merchants, because without a check reader you have to assume that the check will clear when it goes to the bank. Many people don’t intend to bounce checks, but it happens and it costs merchants a lot of money every year. Investing in a check reader can eliminate the costs associated with bounced checks, making your business more lucrative.