Most organizations don’t revisit how they pay vendors unless something forces the issue. As a result, paper checks remain part of many payment processes despite advances in digital payment technology.
But that’s starting to shift. Payment strategy is becoming less about “how we’ve always done it” and more about how to improve efficiency, reduce risk, and get a clearer picture of cash flow. Electronic payment options have become more robust and include more data than ever before. Instant Payments are growing rapidly. According to The Clearing House, the RTP network sustained its rapid growth trajectory throughout 2025, with major milestones reached in November. The RTP network surpassed $1.3 trillion in total payments for 2025, a 428% increase from 2024, when the network processed $246 billion during the full calendar year, reflecting growing demand for real-time payment capabilities.1 Business-to-business payment volume using Automated Clearing House (ACH) Payables is up nearly 10% from a year ago.2 The Wire industry has adopted ISO20022, bringing new possibilities for payment information to be leveraged alongside transactions. As the Fedwire Funds Service moves trillions of dollars daily, the new standard enables richer payment and remittance data to travel with each transaction, helping businesses automate reconciliation and streamline payment processing.3
Moving from checks to electronic payments opens the door to a more flexible mix of solutions — often with less disruption than teams expect.
While checks have served businesses well for decades, they are increasingly misaligned with the speed, control, and visibility that modern finance teams require. Paper-based payment processes create operational inefficiencies, increase fraud exposure, and limit opportunities for automation.
Checks create friction at nearly every step — from printing and mailing to manually reconciling and handling exceptions. All of that requires manual effort, which introduces variability in both timing and cost. For example, a check gets lost in the mail or sent to an outdated address. By the time it’s identified and reissued, days or weeks have passed — creating extra work for both teams and delaying reconciliation.
Electronic payments, on the other hand, offer consistency. They make it easier to automate processes, reduce errors, and gain clearer visibility into what’s happening with your payments. While some organizations rely on check float for flexibility, that control is often more perceived than real. Electronic payments enable precise scheduling — giving finance teams more intentional control over timing, forecasting, and working capital.
Reconciliation can be automated with electronic payments. Remittance information can accompany payments, making it easier for suppliers to match payments to invoices and reducing time spent researching exceptions. The result is a smoother payment experience for both parties.
Electronic payment methods also incorporate security controls directly into the process through user entitlements, dual approvals, transaction limits, authentication requirements, audit trails, and real-time monitoring. These controls help businesses proactively manage risk rather than react to fraud after it occurs.
Overall, electronic payments enable businesses to focus less on the movements of funds and more on their business goals.
There’s also the risk factor. Checks come with well-known fraud exposure. Tools like Positive Pay can help catch discrepancies, but they’re essentially layered on top of a process that’s already vulnerable. Electronic payments can change that equation. With built-in controls, defined authorization protocols, and transaction limits, risk management becomes part of the process itself — not something you’re constantly reacting to after the fact.
Moving away from checks also gives businesses more flexibility in how they pay each supplier. ACH may suit a recurring payment relationship, while an e-Check can provide a digital way to make a check-style payment. ACH also offers the ability to collect funds, with minimal effort from the payor. Real-time payments (RTP) may make sense when funds need to arrive immediately. Wire payments work best for international payments or domestic payments that require finality of the payment and high dollar amounts. Commercial card and virtual card solutions provide businesses with another electronic payment option that can reduce check usage, enhance payment security, and improve operational efficiency. When integrated into a broader payment strategy alongside ACH, RTP, and wire transfers, card-based payments can help organizations optimize both cash flow and supplier experiences. The right choice depends on timing,supplier preferences, acceptance, and the controls each payment requires.
From a supplier’s perspective, the appeal of electronic methods is pretty simple: faster, more predictable access to funds. Payments can be scheduled and received consistently, with same-day options available when timing matters.
There’s often a perception that suppliers will be slow to adopt electronic payments. In reality, many already accept them in other relationships — the barrier is less about capability and more about whether it’s been prioritized. More often than not, it’s simply a matter of reaching out and formalizing the process.
Electronic payments also reduce administrative overhead on both sides. Manual deposits, exception handling, and reconciliation work all tend to drop off significantly. There can be a perception that electronic payment processing requires more setup or ongoing maintenance. Over time, most organizations find the opposite — less manual work, fewer exceptions, and processes that scale more easily.
Several long-term trends are accelerating the move toward electronic payments:
Like any meaningful finance initiative, transitioning to electronic payments works best when it’s approached methodically rather than all at once. The following steps offer a way to approach it:
Start by getting a clear picture of where checks are currently being used — how often, and with which counterparties. That baseline helps quantify the opportunity and identify where you’ll get the most impact early on.
Early momentum usually comes from focusing on:
Instead of trying to convert everything at once, this approach breaks the effort into manageable, high-impact steps.
As electronic payments usage grows, controls should grow with it. That typically includes:
The goal is to make sure increased efficiency doesn’t come at the expense of oversight.
Over time, electronic payments can be extended across a broader portion of your supplier base, while continuing to fine-tune timing and processes. In most cases, the end goal isn’t to eliminate checks entirely but to use them intentionally, rather than by default.
Checks still work. But they’re increasingly out of step with what modern finance teams need. Even with safeguards in place, they bring unnecessary cost, variability, and risk. Electronic processing offers a more controlled, scalable alternative — supporting faster payments, better visibility, and stronger operational discipline.
For many organizations, the biggest barrier isn’t capability, it’s perception. Concerns about supplier readiness, complexity, or control are common, but in practice, they’re usually easier to address than expected with the right plan in place.
Checks still have a place in certain situations, but they no longer need to be the default. By adopting a mix of ACH, wire transfers, and instant payment solutions, organizations can improve operational efficiency, strengthen controls, reduce fraud exposure, and gain better visibility into working capital.
The transition does not need to happen all at once. A phased approach focused on high-value supplier relationships can help organizations realize immediate benefits while laying the foundation for a more modern and resilient payment strategy.
With Webster Bank’s e-Treasury access, electronic payments solutions, fraud-prevention tools, and treasury support aligned to day-to-day operations, Webster Bank helps connect payment modernization to stronger cash flow management and more efficient execution.
If checks are still a big part of your process, ask yourself: where could a shift to electronic payments create the most immediate impact?
Want to discuss further? Contact us.
1 RTP_2024_Year_Records_01-08-2025 | The Clearing House
2 Same Day ACH Gains Lead to First Quarter ACH Network Growth | Nacha
3 Fedwire® Funds Service Volume and Value Statistics | Federal Reserve Financial Services
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