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Payments
4 min

How to Pay Vendors Without Mail Delays

Give your vendors faster, safer payments this holiday season by switching from mailed checks to ACH.

Published at | Updated:
A small business owner going over the mail during the holiday season.

Key takeaways

  • Compare ACH and checks on speed, confirmation, and security before you pay vendors.
  • Switch vendors to ACH so payments arrive on time and skip the holiday mail.
  • Ask a vendor for an early bird discount when you can pay sooner.
  • Send free ACH bank transfers each month with your Melio plan.

What is ACH vs a check?

ACH is an electronic bank-to-bank transfer that moves money straight into your vendor’s account. A check is a paper payment you write, sign, and hand over or mail.

Both pay your vendors. The difference is that ACH moves through the banking network, while a check has to physically travel before anyone can cash it.

ACH vs check: key differences

ACH usually beats a mailed check on the things that matter most when you pay vendors.

  • Speed: ACH clears in a few business days, while a check has to reach your vendor first.

  • Confirmation: ACH gives you proof the payment is on its way.

  • Security: An ACH payment can’t get lost or stolen in the mail .

4 ways to avoid late checks this holiday season

While you can’t magically reduce demand for postal services during the holidays, luckily there are a few things you can do to make sure your vendors are paid on time.

1. Switch to ACH

Perhaps the easiest solution is to just switch to a more efficient payment method . Call your vendor up and explain the mail situation urging them to accept a transfer instead of a check, at least this once.

ACH beats a mailed check on the basics when you pay vendors:

  • Speed: an ACH bank transfer takes just a few business days, while a check can take up to five business days in the mail and much longer over the holidays.

  • Confirmation: ACH comes with instant confirmation you can share with your vendor.

  • Security: ACH transfers can’t get lost or stolen on their way to your vendor.

With Melio, your plan includes free ACH bank transfers each month , so you skip check printing, postage, and the hidden costs of checks.

2. Use the opportunity to ask for an early bird discount

If your cash flow situation allows you to pay sooner, check with your vendor to see if they’re willing to offer a discount in return.

This is a win-win: Your vendor enjoys an early infusion of cash during the demanding holiday season, while you get to save money and improve your relationship with them.

3. Take a road trip

If you’re working with local merchants (which is never a bad idea) you can take the opportunity to deliver the payment in person. Taking the time to meet with your vendors face-to-face once a year can do wonders for your relationships with them.

It can also be a chance to see how your goods are manufactured or handled before they arrive at your door and ensure everything is up to your high standards.

4. If all else fails, use express delivery

Sometimes there’s no escaping it. Despite your best efforts, your vendor insists on getting a physical check like they always did, and is geographically too distant for you to deliver it in person. This is what express delivery services are made for.

Express delivery costs a bit extra, but that’s small next to the cost of a late payment:

  • Late fees

  • Possible litigation

  • Damaged vendor relationships

How to switch a vendor from checks to ACH

Moving a vendor off checks is quick.

  1. Call your vendor and explain the mail delays.

  2. Collect their bank details securely.

  3. Send the payment by ACH and share the confirmation.

Spread holiday cheer by paying your vendors on time

Caroling is nice but timely payments are an even surer way to bring a smile to your vendor’s face. While the holiday season is generally good for business, it can also be very stressful. So, take one load off your vendors’ shoulders by making sure they get their money on time.

If you’re looking for an easy and cost-effective way to send an ACH bank transfer or a fast check, sign up for Melio today .

ACH vs check FAQs

Is an ACH payment the same as a check?

No. An ACH payment moves money electronically between banks , while a check is a paper payment that has to be delivered and cashed.

Is check or ACH better for paying vendors?

ACH is usually better because it’s faster, cheaper, and can’t get lost in the mail. Checks still work when a vendor asks for paper.

Is there a downside to ACH payments?

ACH isn’t instant, so plan a few business days ahead. Some vendors may also prefer a paper check.

*This blog post is intended for informational purposes only and is not intended as financial advice.
**Melio does not provide legal, tax or accounting advice, and you should consult with a professional advisor before making any financial decisions.

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