What keeps paper checks alive in the digital age? Despite their declining popularity for personal transactions, checks still account for nearly 40% of U.S. B2B payment volume. In fact, 68% of companies relied on checks for B2B payments in 2023, and 70% of businesses stated they have no plans to discontinue their use in the next two years.
However, this persistence comes with a hefty price. Check fraud is rising, costing businesses an estimated $24 billion in 2023 — nearly double the amount recorded five years ago. Fraudsters target checks because they are easy to intercept, alter or counterfeit. According to a 2024 survey, 15,417 Bank Secrecy Act reports were tied to mail theft-related check fraud over a six-month period, amounting to $688 million in fraudulent transactions. Small to mid-sized businesses (SMBs) are particularly vulnerable, with 24% reporting fraud incidents compared to 15% of the general population.
Why haven’t businesses moved away from checks? Many perceive them as low-cost or “free,” but manual processing creates hidden expenses. Time, labor and delayed payment cycles add to these costs, and fraud losses only amplify the financial burden. By contrast, digital payment systems offer advanced security features, including artificial intelligence (AI)-driven fraud detection, encryption and real-time monitoring. These tools minimize risks while providing faster transaction speeds and enhanced financial visibility.
Transitioning to digital payments — as well as instant rails such as the RTP® network and the FedNow® Service — is more than just a fraud prevention measure — it is a way to future-proof financial operations. Businesses using instant payments report improved cash flow, lower overhead and stronger vendor relationships.
The “Money Mobility Tracker®,” a collaboration with Ingo Payments, explores how the continued reliance on paper checks creates vulnerabilities in fraud prevention and how digital and instant payment innovations are helping businesses enhance security, reduce costs and streamline financial operations.