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The hidden cost of checks and the digital path forward

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Nick White

Senior Vice President, Commercial Acceptance,

Mastercard

Published: June 23, 2026

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Article at a glance:

  • Legacy use of checks in a rapidly evolving B2B payment environment results in increased costs through labor, delayed cash flow, risk exposure, compliance burden and customer relationship strain.
  • B2B card acceptance offers flexibility, controlled use, high systems integration into existing accounts receivable (AR) platforms and visibility into transaction data.
  • Suppliers who accept cards report higher survey scores in customer satisfaction, working capital efficiency and operational efficiency than suppliers who do not accept cards. 

Checks may feel familiar, but in today’s business climate, they quietly erode business margins, delay cash flow and complicate operations. B2B card acceptance offers a flexible, lower-risk alternative that aligns with customer expectations and positions businesses for long-term success.

The comfort of checks – and the cost of that comfort

For many businesses, checks have long stood as symbols of control, traceability and tradition – hallmarks of ‘business as usual’ in B2B transactions. But beneath that comfort lies growing friction:

  • Delays caused by mail transit and manual handling
  • Vulnerability to fraud and unauthorized deposits
  • Lack of real-time visibility into payment status
  • Hours spent reconciling paper trails against digital workflows

What feels safe may, in fact, be exposing your business to outdated risks – hidden not in fees, but in fragmentation.

The true cost isn’t on the invoice – it’s in the operations

Check payments come with a cost structure that rarely shows up in financial reports:

These operational burdens aren’t isolated – they’re part of a broader pattern. Together, these delays, manual steps and risks quietly compound into meaningful margin erosion. According to The state of commercial card acceptance 2025 white paper, 69% of suppliers cite reliance on manual processes as a key inefficiency in their payment operations. This inefficiency compounds the hidden costs outlined above, from delayed cash flow to audit strain. Notably, the manufacturing sector remains the most dependent on paper checks for B2B payments, underscoring how entrenched these practices are in industries where speed and precision are critical.

What B2B card acceptance offers

While card acceptance may introduce processing fees, these costs are often offset by the operational gains delivered. From faster cash flow and reduced fraud risk to improved customer satisfaction and streamlined reconciliation, the value extends well beyond the transaction itself. For many businesses, the return on efficiency, visibility into spending data and control far exceeds the upfront expense.

B2B card acceptance isn’t an all-or-nothing leap. It can be:

  • Flexible: Accept cards from select customers while keeping checks for legacy clients
  • Controlled: Define specific windows, limits and policies for card use
  • Trackable: Gain real-time visibility into settlements, disputes and cash position
  • Integrable: Sync with AR systems to streamline workflows and reduce manual tasks

Reframing risk : safer by design

Let’s flip the framing:

Final takeaway

Checks aren’t inherently bad. But they’re no longer inherently the safest or most cost-effective payment method, either.

The real risk in today’s payment environment is sticking with systems that expose businesses to delay, error and revenue leakage. B2B card acceptance can strengthen your payment operations and restore control and cost-efficiency where it truly matters.

This isn’t about abandoning checks overnight. It’s about expanding control on your terms. However, the longer you wait, the more it costs. Isn’t it time to rethink what ‘business as usual’ is costing your business?

Still relying on checks? It might be time to consider alternatives.

Mastercard’s The state of commercial card acceptance 2025 reveals findings from our global research involving over 1,000 financial decision makers at large B2B suppliers. If your business relies heavily on check payments, commercial card acceptance can be a strategic alternative. Download the white paper to learn more.

1. Why do checks create hidden costs for B2B suppliers?

Checks can create hidden costs through manual handling, delayed cash flow, and time-consuming reconciliation. These operational burdens can quietly erode margins.

2. What operational inefficiencies are most commonly associated with check payments?

Common inefficiencies include manual deposit and posting, limited real-time status visibility, and hours spent reconciling paper records against digital workflows. Mastercard research highlights reliance on manual processes as a key inefficiency for many suppliers.

3. How do check payments impact cash flow and days sales outstanding (DSO)?

Checks can lengthen DSO due to mail transit and manual handling steps, reducing forecast stability. Longer DSO delays reinvestment and can constrain working capital flexibility.

4. Why are processing fees not the full cost of accepting B2B card payments?

Fees are only one part of total cost. Card acceptance can reduce manual effort, improve visibility, and streamline reconciliation—operational gains that may offset transaction costs depending on your payment mix.

5. How does B2B card acceptance address the hidden costs of check payments?

Card acceptance digitizes payment receipt and can deliver remittance data that supports faster matching to invoices. It reduces paper handling, improves visibility, and enables automation to minimize manual work.