Despite the rise of digital wallets, instant payments, and embedded financial tech, paper checks remain a cornerstone of small business transactions in the U.S.—and that’s not changing anytime soon.
Each year, small businesses—from solo practitioners to landscapers—handle trillions in payments via paper checks. A 2024 report by the Association for Financial Professionals found that over 90% of small businesses still use them.
Dan Holt, CEO of BillGO, a platform that converts paper checks to digital payments, emphasizes two key reasons: cash flow and fraud prevention. A check might take 10 days to clear, but BillGO’s tools reduce that to a single business day. What’s more, nearly every small business they’ve contacted has experienced some form of check-related fraud or insufficient funds.
So why don’t businesses simply go all-digital?
The U.S. has over 10,000 banks and a fragmented infrastructure. Even digital platforms like QuickBooks often route payments as physical checks behind the scenes. Add to that the complexity of reconciling ACH transactions, and it’s no wonder 95% of BillGO’s small business users prefer virtual cards over ACH. Virtual cards also come with more robust fraud protection and easier reconciliation processes.
Even government mandates to phase out paper checks are moving slowly, and consumer behavior still leans toward trust in card networks over direct bank links.
The takeaway? Paper checks may feel outdated, but they’re still deeply embedded in how small businesses operate. However, online bill payment platforms highlight a hybrid future—where checks may be accepted, but not manually processed.
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