Business checks vs. personal checks & 8 more must-ask questions

It feels like no one uses checks anymore, especially with online payment solutions (like ACH) providing fast and secure ways to pay bills. Yet, according to the Washington Post, many Americans still use checks as their preferred payment method, especially in business-related transactions, like contractors, charities, and government bills.

In 2022, checks accounted for 33% of B2B transactions in the U.S. and Canada, according to the Association for Financial Professionals and J.P. Morgan. It’s “a 9% decline from the 42% reported in 2019,” they say, but still a significant portion of business deals.

So why do people still use checks? And should you? Let’s understand the differences between business checks vs. personal checks, and answer some questions you may ask yourself before using business checks.

What is a business check vs. a personal check?

First, the name gives it away: Personal checks are for personal use and are drawn from an individual’s account. Business checks are written against a business checking account and used for business payments, such as paying expenses, utilities, and goods and services from vendors and suppliers.

But that’s not the only difference between personal and business checks.

• Size and appearance: If you look up what business checks look like, you’ll find that they’re larger (8″ x 3-5″) than personal checks (5″ -6×2″) and aim to look more professional. They usually have the business’s logo printed on them as part of their branding.
• Security: Business checks usually provide an added layer of security to the standard protection measures in personal checks, such as anti-copy technology, watermarks, holograms, and thermochromic ink.
• Cashing the check: While cashing a personal check is pretty straightforward, it’s trickier to cash a business check. Business checks are made out to a business, so some banks won’t easily allow you to cash them even if you’re the business owner. It depends, among other things, on how your business is formed (sole proprietorshipSole ProprietorA sole proprietorship is a simple business structure where there’s only one owner. A sole proprietorship is easy to set up or take apart, due to a lack of government regulation. As such, they are very popular among sole owners of businesses, individual self-contractors, and consultants., partnership, or LLC) and if its DBA (Doing Business As) name is identical to your name.

Can I pay business expenses with personal checks?

Theoretically, yes, but you really shouldn’t. Here’s why:

• Human errors: When using personal checks, you’re mixing your business and personal accounts, which is a recipe for disaster. It can lead to bookkeeping mix-ups and affect your credibility as a business owner.
• Safety: Business checks have more safety features than personal checks, making your transactions more secure and fraud-proof.

Which types of business checks are available?

A few key types include:

• Voucher checks: Usually printed on a full page and contain transaction details. These include payroll checks, which contain employee information, work details, and additional notes for the finance department.
• Wallet checks: Checks that are small enough to fit in a wallet, just like the paper personal checks we all know.
• Three-a-page checks: One page, three checks. On the side of each check, there’s room for succinct information, like hours and wages, the number of products, and the cost.
• One-per-page business checks: Printed with the intention to leave extra room to fill in additional information. Those can be printed at the top, bottom, or middle of the page.
• Blank check stock: Security-encrypted paper for printing checks, while protecting you from alterations and forgery.

How much do business checks cost?

Checks aren’t that expensive. Prices can start at a few cents per standard check when buying in bulk. Naturally, the more features and security measures they have, the more they cost.

You can order business checks online from Delux, CheckAdvantage, and more. Here’s a comprehensive list of the best sources to order business checks from.

However, the cost of using business checks doesn’t end with buying them. You still need to fill them out, sign them, and mail them. It all adds up to time and money. Bank of America found that the aggregated cost of sending a single check is $4-20. Now, if you pay most of your business expenses with checks, that’s a hefty expense.

Do checks expire?

Yes… kind of. Article 4-404 of the Uniform Commercial Code allows banks to refuse to pay a check if more than six months have passed from the check’s date of issue. Still, they have the discretion to pay, if they decide to.

How do business checks work?

Whether you’re the payorPayorAll transactions have at least two players–the payor is the one who’s paying, and the payee is the one who receives the payment. or payeePayeeAll transactions have at least two players–the payor is the one who’s paying, and the payee is the one who receives the payment. , let’s walk through this together step by step.

What’s the difference between business checks and electronic payments?

Here’s a quick comparison to help you differentiate between business checks and popular electronic B2BBusiness-to-Business (B2B) Business-to-business refers to operations done between businesses. B2B payments are transactions made between two businesses or companies. payment methods.

Are checks safe?

According to the Association for Financial Professionals, 63% of organizations reported experiencing check fraud in 2024. Federal Reserve Bank of Atlanta also noted an ongoing rise in mail-related check fraud despite declining check use.

Protection measures in personal checks and business checks do exist, but they carry an inherent risk as they’re still physical pieces of paper. They can be misplaced, lost, stolen, or tampered with. For more on the risks and security measures related to checks, read our comprehensive article on the safety of checks vs. ACH and wire transfers.

Can I print my own business checks?

Yes, you can! And it’s not even that complicated. You’ll need a printer, suitable paper, magnetic ink, and check-printing software, but once you’re set up, you’ll be able to print checks in no time.

That said… Why would you?

The main cost of checks isn’t the actual checks, but the time spent writing them and the risk involved in sending them. If you only use a few checks a month, setting up this entire operation makes little sense. On the other hand, if you need to use lots of checks, get ready to spend time and money stocking up on paper and ink, and paying for printer maintenance. You probably have better things to spend your time and money on.

Bonus question: Is there a better way to use business checks?

Yes, there is. Instead of buying checks, printing them, sending them in the mail, and all that jazz, Melio takes care of all check delivery for you.

With Melio, you can control how you pay your vendors and the way they get paid. So you can choose to pay by ACH bank transfer or card and Melio will send a paper check for the amount to your vendor on your behalf. This means:

• No more wasting time on writing, sending, and tracking checks.
• No more wasting money buying checks, stamps, and envelopes.
• No more sacrificing security. The check doesn’t have your banking details on it, reducing the risk of check forgery.

Hopefully, with these questions answered, you’ll know how to make the best decision about the payment methods most suitable for your business.