If you've ordered anything online recently, you've probably noticed it has taken a bit longer to arrive than usual (what happened to Amazon's two-day delivery guarantee?). Many factors have contributed to this, not least the worker shortage that has affected nearly every industry in the US.
Mail delays can significantly affect people who rely on mailed checks to pay bills, including community association members. These delays can cause missed payments, late fees, and other financial consequences for the person who sent the check. Read on to learn why mailing checks may not be the best idea.
One common issue with mailed checks is that they get lost or waylaid in the postal system, resulting in significant delays. This can be frustrating for the sender and the recipient, as it can take weeks or even
Another issue with mailed checks is that they are vulnerable to fraud. According to the National Check Fraud Center, check washing takes place to the tune of $815 million every year in the US, and it's increasing at an alarming rate. A recent example of the consequences of check fraud happened in Fayetteville, NC. The county government had sent a $1.4 million check to a community college, thinking it would get there and be used for its intended purpose. However, a thief intercepted the check and was able to redeem it at a bank. The bank then had to reimburse what essentially became stolen taxpayer money. The problem has grown so severe that many local and federal authorities have formed task forces around the country, with agents from the Postal Inspection Service, US attorney's office, local police forgery units, FBI, and Secret Service.
As you can see, check and mail fraud can be difficult to detect. The best prevention is to avoid sending your personal information through the mail.
The days of checks being received at a place of business, completing a deposit slip, and taking it to the bank are far behind us. Companies work hard to protect customers'’ personal information, which is why checks are processed electronically directly at the receiving bank, usually with no human interaction.
When association members mail a check to CAMS, the process goes as described below.
Wow, that sounds complicated! And don't forget to account for machine and human error when decoding the scanlines, barcodes, and account numbers that must be matched across the various platforms.
Paying through your bank is convenient, but did you know that many of these payments are sent to their final destination via a paper check? The money is withdrawn from your account same day, but sometimes it takes a few weeks to be received by the association. This is because banks use a middleman for processing electronic payments (e.g., Payargo, ClearedCheck Systems, etc.), and depending on the integrations
When the lockbox processes these online bill payment checks, there is no coupon included, so accurate and complete account numbers and identifying information must be written on the face of the check.
To avoid a catastrophe like the one discussed above, it is recommended that people utilize secure online payment options whenever possible. CAMS provides many secure payment options to its clients, including credit and debit cards, E-checks, and auto-draft. These methods are generally faster, safer, and more convenient than mailing checks and can help avoid the potentially negative effects of mail delays or fraud.
For the protection of our customers and due to audit controls, we do not accept assessment payments in our offices. The association and its members are best served when payments are processed quickly and securely via the lockbox.
In addition to using online payment options, many community associations also choose online billing. This
While mailed checks may still have their place in some situations (everyone loves to get a birthday card with a check), it is important to be aware of their potential risks and negative effects. By using online payment options, individuals and businesses can ensure that their financial transactions are secure and delivered on time.
If you'd like to learn more about utilizing online payment options and avoiding check fraud, reach out to the experts at CAMS today on our website or at 877.672.2267.
In business for over 31 years, CAMS is North and South Carolina's premier community management company. With experienced local managers in each of its nine regions, CAMS is dedicated to providing innovative solutions to the community associations it serves. Additionally, CAMS was featured on Inc. Magazine's 2022 Inc. 5000 list of the fastest-growing private companies in America. To learn more, visit www.camsmgt.com/choose-cams.