Moving away from paper to electronic can yield big results
Sending 20,000 paper checks per month can cost $60,000-$400,000; per year: $720,000-$4.8 million. With VPay’s total payment solution, you can eliminate the costs of using paper-based checks, including postage and printing costs, plus banking fees.
Digital technology has impacted virtually every industry. It offers customers and businesses alike ease of use and level of accessibility that help improve experiences and increase efficiency. The insurance industry is no exception, as insurers introduce mobile and web-based tools that make it for customers to manage their policies. Yet, astonishingly, when it comes to making claims payments, a number of companies still insist on doing things the old-fashioned way: issuing a paper check. In fact, a recent survey by Deloitte found that fewer than 30% of CFOs surveyed said they are investing in new technologies that make their financial processes more efficient.¹
Let’s take a look at the real costs of using paper-based checks for claims payment:²
- The costs for companies to send a paper check: $3-$20, which can be significantly more due to incidents of check fraud
- Costs for an organization sending 20,000 paper checks per month: $60,000-$400,000; total costs for an entire year: $720,000-$4.8 million
epayment solutions offer insurers a more efficient, cost-effective way to make claims payments. Insurers can use virtual cards, automated clearinghouse (ACH), or direct-to-debit payments, saving them time and more importantly, in postage costs and banking fees. Now consider paper check costs compared to epayments:³
- The cost to send a paper check is 10 times more expensive than epayments
- The cost to receive a paper check is five times more expensive than epayments
VPay’s total payment solution helps you eliminate the costs of using paper-based checks, including getting rid of printing, postage, and banking fees. Now you can pay claims faster and more efficiently, in the method customers prefer: virtual card, ACH, or direct-to-debit. Discover additional ways epayments work better than paper-based checks by downloading the white paper: Top Strategies for Auto Insurance CFOs: Modernizing Claim Payments.
Visit www.vpayusa.com or call 855-VPAY-USA to get started.
- 2015 AFP Payments Cost Benchmarking Survey, Association for Financial Professionals.