When businesses run low on checks, most turn to their bank for a refill. The assumption seems to be that since the banks are holding the money, they are also the ones to issue the checks.

However, there is no real reason to purchase checks from your bank. Independent check printers can print checks that are just as valid and accepted as the ones you obtain from your bank.

Since banks are not really in the check printing business, they tend to be a fairly expensive and slow source for checks. Most firms will be able to save money by turning to an independent check printer for their needs.

This guide is designed to give you the facts you need before purchasing checks for your business. The various sections are listed in the box above. You can choose to read this guide from beginning to end, or jump directly to a section of interest.

Check Printers

Check printing is not a particularly difficult process. Any company can print checks as long as they have magnetic ink for check processing, and the ability to number checks consecutively for accounting purposes.

Although many firms get their checks from the bank, there are almost no banks that print these checks themselves. Instead, banks turn to companies that specialize in check printing. In addition to serving banks, these check printers also sell directly to check users.

Types of Checks

Companies generally have the choice of buying either traditional or computer-generated checks.

Traditional checks are designed to be completed by hand or with a typewriter. They are typically arranged three-up on a page, with a stub for reference. An alternate design, called one-write checks, adds a carbon strip on the back of each check to record relevant information on a ledger. With one-write checks, users can issue checks without having to record the recipient and the amount elsewhere.

Computer-generated checks are designed to be used with a computer-based accounting program and a printer. Single sheet designs are intended for laser printers, while dot matrix printers generally use continuous form designs. For businesses that need multiple receipts, dot matrix printers can also print onto carbonless multi-part checks.

Check Fraud

The easiest way to prevent fraud is to include color copy protection on the checks. This process incorporates additional lines into the check's background image in what is called a pantograph. When a check is copied, the resulting image will produce a "void" mark.

Purchasing Checks

Checks are available from three primary sources: direct sales catalogs, local forms distributors, and banking or accounting service providers.

Direct check vendors primarily sell through catalogs. By eliminating the middleman, these vendors tend to provide the best value for companies buying only a few thousand checks at a time. Direct vendors can handle simple customization such as logos but usually do not offer custom designs.

Local distributors are typically used for higher volume purchases or situations where a special design is required. Distributors do not print the checks themselves but will work with one or more printers to complete the job. This method saves you the time of having to find a suitable printer, but it usually results in somewhat higher prices than a direct vendor.

Banks and software vendors sell checks only to supplement their other services. They have very little incentive to provide competitive pricing, since checks are not their main line of business. As a result, prices from these vendors tend to be quite high.

Pricing

Businesses can expect to save anywhere from 20% to 70% off bank prices when buying checks from catalogs or local distributors. You can expect to pay $70 to $100 for 1,000 checks. Companies buying 5,000 checks at a time will pay about $250 for impact checks, and $300 for laser checks.

Impact checks are designed to work with most daisywheel and dot matrix printers. Each check usually consists of multiple parts and comes attached for continuous printing.

Laser checks are designed for use with a laser printer. They are typically arranged with one or three checks per sheet. The three-on-a-page design costs less per check, but can be difficult to use if you usually print just a few checks at a time.

Special Tips

Buy enough checks to last nine months to a year
Small firms may want to order a slightly larger supply, since prices are significantly higher for quantities of less than 1,000 checks.

Make sure computer checks and software are compatible
You can usually specify what program you use, or send a voided check to the firm to find a close match. It is not necessary to use the checks from the software company.

Verify your routing code
Usually, all you need to do to get checks made is to send in a voided current check. It makes good sense to take the few minutes of calling your bank and confirming your routing code. Routing codes often change as a result of a merger. In these cases, the routing code will eventually no longer be valid and you will then need to buy a new set of checks.