# Check Payments - Canonical: https://givechariot.com/resources/insights/check-payments - Published: 2026-05-27 --- At a first glance, it feels like in 2026 check payments should be obsolete, but they still aren't. [One study ](https://www.atlantafed.org/research-and-data/publications/take-on-payments/2026/01/12/why-do-businesses-still-use-paper-checks)found that nearly 80\-83% of firms with revenue under $10 million use checks for business payments. In the nonprofit space this is sometimes even higher. Even the largest national DAFs struggle to push their ACH rates above 50%. There are a few reasons why nonprofits/grantmakers still use checks which was written about [here](https://www.givechariot.com/resources/insights/all-checks-no-balance-a-report-on-the-state-of-check-payments-to-nonprofits). Despite their popularity, checks have significant risk of fraud. A [2024 study](https://7185359.fs1.hubspotusercontent-na1.net/hubfs/7185359/Research%20Surveys/SURVEYS/2025%20AFP%20Payments%20Fraud%20Survey%20Report%20Key%20Highlights.pdf) by the Association of Financial Professionals \(AFP\) found that checks continue to be the payment method most often subject to fraud. Since 2020, about 2/3 of businesses reported check related payment fraud in every year of the AFP study. And then there is the issue of payment delays. In [one analysis of 2,000\+ DAF gifts](https://www.givechariot.com/resources/insights/all-checks-no-balance-a-report-on-the-state-of-check-payments-to-nonprofits) to a single nonprofit, check\-sending providers averaged delivery times of 7 to 162 days versus 2\-3 days for ACH. Finally, there is the cost. [Industry estimates ](https://www.paystand.com/blog/paper-checks)put the all\-in cost of sending a single check at $4 to $20. Multiply that across the millions of nonprofit gifts mailed each year and the sector burns hundreds of millions \(maybe billions\) on its slowest, riskiest payment rail. Until every payer and nonprofit accepts electronic payment, the right answer is making them as traceable and verifiable as the alternatives. At Chariot, less than 15% of our disbursements volume go out as paper. For that minority though we’ve also built the best check sending process. Here’s what that looks like: - **We do it at scale with in\-house address sourcing.** A dedicated team and verification process keep our check return rate below 1%. - **Positive Pay on every check.** We verify payee name, amount, check number, and date before any deposit clears. These fine grained positive pay controls make a big difference to our nonprofits. We automatically reject deposited checks that fail these validation steps: - 1. *Do this check number and account number refer to a pre\-registered check?* Fraudsters might try and steal valid checks and create invalid duplicates by copying some, but not all, of the details. 2. *Does the amount presented match the pre\-registered check?* The nonprofit or its bank, may have transcribed the check amount incorrectly. In that case, the check will be returned and they should re\-deposit for the correct amount. 3. *Does the check have the Payee name match? C*hecks can be altered and the “Pay To” line changed to a fraudster. We automatically identify checks that have been manipulated and block them. 4. *Has the check already been successfully deposited?* Fraudsters may find deposited checks \(in the trash, on a desk in the office\) and attempt to re\-deposit it\! Or, nonprofits may make a mistake and deposit it twice. In either case, you’re protected. - **Even when you’re sending checks, speed matters:** Shipping options default to `usps\_first\_class` but can be set to `fedex\_two\_day` or even `fedex\_overnight` shipping. Payers often send checks and need to funds moving fast. This includes a donor request, a natural disaster, etc. Sometimes those payments are urgent. - **Customizable grant letters with data:** Payers can customize the grant terms, logo and information sent on each grant letter so that nonprofits can receive all the right data needed to cash the check and thank the donor. - **Enhanced verification on larger checks.** We call nonprofits directly for any check over $25K. Additionally, our compliance tram carefully reviews every cashed check above $25K. - **Real\-time tracking with geo\-location.** Grantmakers see live status as the check moves through USPS \+ FedEx. Traditional check workflows give you a "mailed" date and silence until cashing. USPS provides [1000 different codes](https://postalpro.usps.com/informedvisibility/OperationCodesList) and we handle that complexity to surface every scan event simply, so delays or misrouting are visible early. Checks are a transitional technology and have been transitional for many years. And every year the transition continues on, billions of dollars meant for nonprofits move through a payment rail most treat as too unglamorous or maybe immutable to improve. Building well for something you're trying to obsolete is its own form of respect for the work nonprofits do and their preferences. We build for the world that exists and for the one we necessarily wish we lived in. If you’re sending checks to nonprofits, let’s chat\!