When a company controls its own float, it immediately improves its cash flow position. With 3T, you own your float interest income. In many cases the retailer is forced into a negative cash flow scenario. Major vendors such as MoneyGram and Western Union do not share any float income with the retailer. However, if the company outsources its secure document processing, the third-party provider keeps all the interest, and the company loses out. During this “float” period, the company issuing the item can invest the funds to generate interest income, which can add up surprisingly fast. “Float” is the time between the date an item is issued and the date it is redeemed, cashed or abandoned. When a company eliminates pre-printed document forms, it saves at least half the cost per location each year. Moreover, if a customer has a question about the status of a secure document or money order, the company can respond faster with more accurate information.įurthermore, the use of blank, laser-printed security document stock eliminates the need for costly pre-printed, multi-ply stock. With faster performance, the customer has a shorter wait and a better experience. #Money orders software#The software is easy for employees to learn and use, and the hardware has been downsized to fit conveniently in small spaces. By contrast, 3T’s PC-based software drives custom laser printers that print secure MICR (Magnetic Ink Character Recognition) documents. The old standard for issuing a money order involved a manual, labor-intensive process. Key advantages to money orders from 3T Solutions: When a retail company outsources its money order operation to a third-party provider, the company sacrifices these last two cash flow and profit sources. Profit on money orders is primarily derived from fee income and from interest earnings on the float and escheat service charges on abandoned property. The Federal Government has estimated that the Dodd/Frank bill will force 10 million more people into unbanked and 14 million into underbanked. These convenience store customers/shoppers find it convenient to obtain multiple services under one roof – money orders in addition to gas and convenience store items. Core money order customers are the 40 million “un-banked” individuals in the U.S who do not maintain formal banking relationships. “Non-bank financial institutions” such as convenience and grocery stores sell approximately 94 percent of all money orders. The money order, a payment order for a pre-specified amount of money, is a safe and reliable alternative to checks and is universally accepted as a recognized method of payment. Money orders comprise a significant part of financial transactions - over 1 billion money orders are sold annually, and statistics show over 25 percent of the American population has purchased at least one money order in the last 12 months.
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