When some associations and management companies think about online payments, they have a “if it’s not broken, don’t fix it/em> mentality. However, this attitude could be costing their business a ton of money because they aren’t using streamlined, and updated technology. Not only are these out of date processes costing them money, it’s also exposing management to illnesses that can be avoided.
Did you know it costs on average $1.22 to process a paper check? Even banks who specialize in HOA & COA processing, report that best in class lock box centers cost an average $0.65 to $0.75 per check.
Many companies don’t realize that they’re paying for lock box fees
FREE CHECKING ACCOUNTS: The bank is using the earning power of your money to pay for the lock box processing. Free accounts don’t illustrate how your earnings offset their fees.
“ANALYZEDACCOUNTS: The bank is using the earning power of your money to pay for the lock box processing fees. However, the bank will give you a statement detailing how your earnings offset their fees.
Banks don’t work for free. So, if you’re not monitoring and measuring your bank fees, you’re likely overpaying for banking services. If you’re thinking about your current banking situation here are questions you can ask…
– HOA & COA deposits are more valuable than traditional deposits such as restaurants and retail deposits. That’s because HOA/COA reserves are very large and stable.
Are you maximizing the value of your bank deposits?
– Quarterly & annual payments reduce your bank’s cost of managing a lock box. What benefits do you receive from quarterly and annual payments?
– Large PMC’s receive analyzed treasury statements every month to help ensure that they are receiving “Earnings Creditsthat are commensurate with the value of their deposits.
Should you be asking for an Analyzed Treasury Statement and EarningsCredits?
– If you manage 20 to 25 communities and receive free checking…You are leaving money on the table with your bank.
Not only do associations and management companies want to save money but we need to keep people safe. Today it’s more important than ever to limit the exposure of individuals to COVID-19. Society will never be the same in the way of handling checks and cash. Extra precautions will always need to be taken to keep our teams safe. With that being said, now is a great time to encourage homeowners to pay online. As communities come together to battle COVID-19 they understand how essential it is to provide safety for management and bank professionals.