Estimated paper check vs. ACH payment costs

6360Paper Checks:

Variable Hard Costs                                 LOW                   HIGH

 
Postage                                                $.73                    $.73

Check Stock                                          .09                        .25

Envelopes                                              .05                        .25

Print toner, staples, supplies                      .05                        .20

 Total =                                                $.92                    $1.43

 
 Variable Labor Costs:                              LOW                    HIGH


Includes check run processing: distribute for authorization, signatures, and review: collation: error resolution & reruns: stuff, seal & address envelopes: apply postage: take to mail stream.


                                                           $.67                     $2.84

 Variable Fixed Asset Costs:                      LOW                     HIGH

 
Pro rata rent & utilities: depreciation on computers, printers, workstations: phone svc, maintenance contracts, etc:

                                                           $.67                     $1.43

 Total Paper Check Costs:                          $2.26                        $5.69

 

 ACH Dollar/Data Disbursement:                 $.05                          $.21


Your ACH disbursement transaction cost will be based on the agreement you have in place with your financial institution.

 

ACH Savings per payment:                          $2.21                        $5.48