From Checks to Clicks: How Electronic Payment Methods Benefit Construction Companies and Boost Efficiency

If you still pay construction partners with paper checks, or accept them as payment through the mail, now is the time to reconsider this increasingly risky practice. Although the use of paper checks has been declining for decades, reports of criminals targeting postal collection boxes for check fraud have surged dramatically. The U.S. Postal Inspection Service received more than 299,000 complaints of mail theft from March 2020 through February 2021, a 161% increase from the previous year.¹ In addition to the threat of fraud, checks can be lost or delayed in transit, disrupting cash flow and damaging business relationships.

Investing in electronic billing and modern construction payment technology helps eliminate these risks. Transitioning to secure digital payments delivers significant benefits, from improved cash flow and peace of mind to protecting your reputation and strengthening relationships with your construction partners.. 

The Risks of Check Payments 

According to a recent alert from the Financial Crimes Enforcement Network (FinCEN), in 2022, check fraud filed by banks nearly doubled to 680,000, from 350,000 the prior year.² In fact, postal inspectors recover more than $1 billion in counterfeit checks and money orders every year.³

Check-washing scams involve altering the payee name and dollar amount on legitimate checks before fraudulently depositing them. This practice has evolved from small-time criminals pilfering a check or two from residential mailboxes to more organized efforts involving major theft from postal collection boxes.⁴ Criminals now sell copies of washed checks online, along with stolen or counterfeit postal master keys, known as arrow keys, that open secure mailboxes. Even more alarming, postal employees have been robbed at gunpoint in several major cities, and in some cases, entire postal trucks have been stolen for the contents they carry.

These escalating risks highlight the urgency for organizations to move away from paper-based payments. Adopting secure, cloud-based payment solutions, such as Hyphen Wallet, helps eliminate exposure to fraud, accelerates payment processing, and protects both senders and recipients from financial and reputational harm.. 

Advantages of Electronic Payment Methods 

Paper-based payments often lead to delays, misplaced checks, and unnecessary trips to collect or deliver payments. With the rise of reliable digital options such as Virtual Credit Cards, Real-Time Payments (RTP), Wire Transfers, and Standard or Same-Day ACH, continuing to rely on paper checks no longer makes sense. Electronic payments are faster, safer, and more cost-effective, helping businesses improve cash flow, reduce fraud risk, and strengthen financial control. 

Making the Transition to Electronic Payment Methods 

Hyphen Wallet makes the move to electronic payments simple and secure. Through its password-protected portal, construction businesses can access real-time payment status, instant reconciliation, and complete visibility into every transaction. The system supports 24/7 access to paperless records, transparent communication, and enhanced financial oversight.

To ensure a smooth transition, organizations should train staff on new processes, communicate the benefits internally, and regularly review payment reports for accuracy and fraud prevention. Hyphen Wallet also allows users to export payment reports for further analysis, supporting smarter financial management.

Invest in Electronic Payments to Improve Efficiency and Reduce Risk

By digitizing and automating payment workflows, construction professionals can eliminate manual processes, reduce fraud exposure, and free up time to focus on project delivery and growth. Hyphen Wallet provides a secure, easy-to-use platform that connects seamlessly with existing ERPs and systems, enabling users to track, reconcile, and manage payments with confidence.

Take the first step toward faster, safer, and more efficient payments, schedule a Hyphen Wallet demo today.

¹Source: https://www.uspsoig.gov/reports/audit-reports/us-postal-inspection-service-pandemic-response-mail-fraud-and-mail-theft 

 ²Source: https://www.fincen.gov/news/news-releases/fincen-alert-nationwide-surge-mail-theft-related-check-fraud-schemes-targeting 

 ³Source: https://www.uspis.gov/news/scam-article/check-washing 

 ⁴Source: https://www.nytimes.com/2023/03/10/your-money/check-fraud-protection.html