This 2016 article from the Ottawa Citizen highlights a public opinion research report commissioned by Public Works and Government Services Canada, which asked about 500 Canadians what they thought about re-loadable cards. It seems that the federal government was considering handing out pre-paid cards to Canadians to receive federal benefit payments via direct deposit or cheque, as a replacement for traditionally used cheques. This makes sense since about the only people who still use cheques are banks, the government, and my sweet ol’ grandma sending off her yearly Christmas special delivery. But how much do cheques really cost?
Berkley Payments helps us break it down. Scotiabank’s Cheque Cost Issuance Model shows that costs can be anywhere from $15-25 per cheque. If you haven’t yet jumped back in bewilderment, wait for it…
IT CAN GET AS HIGH AS A WHOPPING $50 PER CHEQUE.
Where does it all go?? Let’s break out the pie charts .
HR management software company PaySavvy (rebranded as Rise) determined the average cost to issue one cheque is $17. They illustrated this breakdown through a pie chart, which shows all the costs associated with the cheque issuance model.
The hidden costs associated with cheques has more recently become a topic of discussion again, flung into the spotlight by the 2020 pandemic. Pre-paid cards are a fantastic idea as an alternative to cheques, but why not go completely digital?
Does your company still use cheques? Don’t you think it’s time to consider switching?? Start saving money AND THE WORLD, now. Contact us!