The Paper-Less Office
Did you know that banks will, as of on or about November 1st, convert their paper check system to an electronic system? If my understanding is correct, vendors will be paid (e.g., by a paper check); they will then convert the check into an electronic transaction and either keep, return or, most likely, destroy the paper check.
That means that the payor will not receive either the actual paper check or even a photocopy of the canceled paper check (which is the current system). Rather, there will appear on the monthly bank statement an entry which shows an electronic debit to the payor’s account.
What if the payee makes a mistake or is unscrupulous and makes two electronic debits? Will the payor know? ONLY if the payor reconicles his/her bank statement every month! And is even more careful than now.
While the banking system may be making the payment process more convenient and efficient for banks, there is an increased risk of error and malfeasance for the bank customers, the payors!Tags: Management
Categorized in: Management