You automate ticketing, deploy updates with RMMs, and track KPIs in real time. But when it comes to getting paid, your MSP is still waiting on checks to arrive in the mail.
That’s not just backward—it’s risky.
Paper checks are quietly draining your cash flow, delaying decisions, and eroding the trust you’ve built with your clients. They create hidden friction, bog down your team in low-value tasks, and undermine the financial clarity your leadership depends on. And the worst part? Most MSPs don’t even realize how much damage this outdated process is doing.
But there’s good news: MSPs who make the shift to modern payments gain far more than speed. They create billing processes that build trust, reduce friction, and give their teams hours back each week. We’ve seen clients go from chasing checks to closing the books with confidence—and getting paid faster in the process.
In this article, you’ll learn how paper checks are sabotaging your efficiency, putting you at compliance risk, and frustrating clients who expect better. You’ll also walk away with a modern, practical path to move off checks—without causing disruption.
Here’s what you’ll learn if you keep reading:
- How paper checks are silently draining your time, trust, and team morale
- The hidden security and compliance risks you’re exposed to with every mailed check
- Why check payments frustrate clients—and how it affects your brand
- What holds MSPs back from switching (and how to overcome it without friction)
- A clear, phased plan to move off checks without disrupting long-time clients
- What a better, automated payment experience looks like with the right tools
Let’s start by looking at where the pain really begins—and how manual payments silently disrupt every layer of your business.
How Manual Payments Disrupt Everything
According to the 2023 AFP Payments Fraud and Control Survey, 63% of organizations reported fraud activity involving checks—making them the payment method most frequently targeted by fraudsters.
But fraud is just the surface. The real damage starts with delays—delays in getting paid, in closing books, and in knowing where your cash actually stands. When payments come in manually, nothing happens automatically. Someone must open the mail, enter the check data into the PSA, deposit the check, wait for it to clear, then manually match it to the right invoice in the accounting system. Multiply that by dozens or hundreds of clients, and you’re looking at hours of repetitive, error-prone labor every single week.
This isn’t just about lost time—it’s about lost visibility. With manual payments, cash flow becomes a guessing game. You’re always looking backward at what came in, instead of having a real-time view of what’s available. This limits your ability to make strategic decisions, invest confidently, or even just cover expenses without stress.
When cash flow is inconsistent, everything else gets harder. Your finance team is left patching together spreadsheets to get a handle on receivables. Leadership is hesitant to make investments or commit to new hires because the financial picture is murky. And your service teams may hesitate to act on unpaid accounts, unsure whether an invoice is truly overdue or just lost in the mail.
The disruption seeps into your client relationships too. Chasing down payments puts strain on your team’s tone and timing. It can create awkward moments when a client insists they’ve paid, and your systems haven’t caught up. Meanwhile, that time could have been spent supporting the client or solving their technical issues.
You also lose the ability to spot patterns in real time. Late payments from a usually reliable client? A surge in unpaid invoices that might point to a service issue? Manual systems bury these trends beneath a mountain of admin work. Instead of being proactive, you’re constantly reacting—often too late.
All of this impacts morale. Your finance team signed up to support the business, not chase paper. Your account managers didn’t envision client relationships built around payment friction. When your best people are stuck doing low-value tasks, you risk burnout, turnover, and a culture that feels more reactive than strategic.
This level of friction adds up over time. A few late payments here and there become systemic drag—affecting forecasting, vendor relationships, and even morale. And all of it can be traced back to a system that was never designed for the speed or complexity of today’s MSP business.
And just when you think the operational chaos is the worst of it, the security concerns start to show up. Because while paper checks are inconvenient, they’re also surprisingly vulnerable—and few MSPs realize just how much risk they’re taking on every time they accept one.
Security Risks and Compliance Gaps
Paper checks aren’t just slow—they’re vulnerable. Each check reveals critical financial information: your routing number, account number, business name, and sometimes contact information. In the wrong hands, that’s more than enough to attempt fraudulent activity.
Checks can be intercepted in the mail, forged, or altered. Once they’re out of your client’s hands, there’s no easy way to know what happened until it’s too late. Unlike digital payment systems, there’s no built-in audit trail, no real-time verification, and no alerts to flag tampering or inconsistencies.
This lack of traceability is what makes paper checks a persistent threat in an otherwise secure operation. For MSPs that hold themselves to high security standards—and often advise clients on how to reduce their own risk—continuing to accept paper checks sends a contradictory message. It’s not just about internal exposure—it’s about the message you send externally.
Beyond the security angle lies an equally pressing concern: compliance. Manual payment workflows can introduce unnecessary exposure of sensitive financial data. If you’re storing scanned checks, emailing payment records, or entering data into multiple systems by hand, you’re increasing the surface area for human error or accidental disclosure. These outdated practices rarely meet modern data protection standards—and during an audit, they can become a liability.
Think about PCI compliance, for instance. Or SOC 2. Or simply your internal cybersecurity protocols. If you’re putting your clients through robust controls for endpoint protection and network segmentation, but you’re accepting paper checks with static routing numbers, that’s a weak link in your chain. And your clients might notice.
The risk isn’t just theoretical. Consider what happens when a check is mailed to the wrong address. Or when an AP clerk accidentally scans and stores it in an unsecured shared folder. Or when a staff member emails banking details to follow up on a check—because there’s no automated system that keeps everything secure and centralized. These are the real-world breakdowns that create audit flags, erode trust, and expose your business to avoidable risks.
What’s more, security incidents—even small ones—have ripple effects. You might be forced to issue new account numbers, update client billing records, or rework workflows. That kind of disruption costs far more than the time it takes to move to a modern system.
When you’re trusted to safeguard networks and data, relying on such a fragile payment method undermines the confidence you’ve worked hard to build.
And while security and compliance are serious concerns, they’re often hidden behind the scenes. But what your clients see—and feel—every time they go to pay you? That’s front and center. And if left unaddressed, it can be just as damaging to your reputation and retention.
What Your Clients Actually Experience
Think about the process your client goes through to pay by check. They have to print the invoice, find your mailing address, fill out a check, stuff it in an envelope, apply postage, and physically mail it. That’s a lot of friction for a task that should take less than a minute. Every one of those steps is a point of drop-off—an opportunity for delay, confusion, or outright abandonment.
Clients today are conditioned by modern experiences: they tap to pay for coffee, renew subscriptions with a click, and pay vendors through clean, intuitive interfaces. When they turn around and have to find a checkbook to pay you, it creates a jarring disconnect. It sends the unspoken message that your business hasn’t caught up—or worse, that you haven’t prioritized their convenience.
For some clients, this added friction is enough of a hassle to delay payment until they have time to deal with it. Others may forget altogether or misplace the invoice. Some will send it to the wrong address, omit the invoice number, or forget to sign it. And when they do send it, they have no way to know when it’s received or if it’s been applied correctly—unless they follow up manually.
There’s also the emotional aspect of dealing with outdated systems. Clients may feel frustrated or even embarrassed that they have to use a method they associate with a bygone era. Especially for newer, tech-forward clients or startup teams that run entirely digital operations, writing a check feels like a step backward—not forward. These moments, while small on their own, accumulate into a broader impression: one of friction, not fluidity.
It’s important to recognize that clients don’t just evaluate you based on the services you deliver—they also judge the ease of doing business with you. A clunky billing experience can diminish even the best technical support or project delivery. That’s a high price to pay for a payment method that’s well past its prime.
And don’t underestimate how word-of-mouth is shaped. When clients talk to other business owners about their MSP, they’re not only discussing ticket response time or uptime—they’re also sharing what it’s like to work with you day-to-day. If billing is a pain point, it becomes part of the narrative that influences your reputation.
This isn’t just about inefficiency—it’s about the impression it leaves. When a client asks, “Can I just pay online?”—that’s not just a convenience request. It’s a signal. A moment of insight into how they perceive your operations. And when the answer is no, it subtly erodes the credibility and trust you’ve built.That moment matters. Because in that moment, you’re either reinforcing trust—or putting it in question.
So if the case against paper checks is clear, why haven’t more MSPs made the switch? To answer that, we need to explore the practical barriers—and perceived risks—that keep many stuck in the status quo.
Why Some MSPs Still Resist the Shift
If checks are clearly holding MSPs back, why are so many still using them? The answer isn’t laziness—it’s complexity. Many MSPs have clients who’ve been with them for years, sometimes decades. These clients are comfortable mailing checks, and any attempt to move them to a digital platform can feel risky to the relationship.
There’s also the question of fees. MSPs who absorb credit card transaction costs may hesitate to encourage digital payments, fearing that higher adoption will eat into their margins. Others may not realize that ACH options are far more affordable—and that offering autopay actually reduces late payments and manual AR work.
And then there’s change fatigue. MSPs have spent the last few years navigating security shifts, vendor pricing changes, remote work transitions, and economic curveballs. Even a seemingly simple change, like payments, can feel like just one more operational fire to put out.
These are real concerns. But they’re also solvable. And once addressed, they open the door to a smoother, faster, and more client-friendly way to get paid.
To see what that actually looks like in practice, let’s look at what a better payment experience delivers—for your clients, your team, and your business as a whole.
What a Better Payment Experience Actually Looks Like
At Alternative Payments, we think payments should be simple—both for the MSP and for the client. That means offering a process where clients know exactly how and where to pay, and your team doesn’t spend hours manually tracking and matching payments.
We’ve worked with enough MSPs to know where the real pain points are. It’s not just about collecting the money—it’s about what happens before and after the payment. The emails, the follow-ups, the reconciliation. When those steps are clunky or manual, the entire billing experience becomes a drag for both sides.
A better payment experience starts with visibility. Your team should always know which invoices have been sent, which payments have come in, and which clients are still outstanding—without bouncing between tools. When systems are integrated, your PSA, accounting platform, and payment portal speak the same language. No duplication. No rekeying. No delay.
But it’s not just about visibility—it’s about proactivity. A well-designed system nudges clients with automated reminders before due dates. It flags issues before they become cash flow problems. And it empowers your team to spend more time acting on data than gathering it.
For clients, the value is in clarity and ease. They receive a branded invoice with a secure payment link. They can pay with a click, store a preferred method, and set up autopay. They receive confirmations instantly, know what they’ve paid, and can view past invoices any time—without reaching out to your team. This convenience builds confidence, and confidence builds loyalty.
Finance teams benefit too. They’re not bouncing between reports or waiting on the bank feed to update. Payments post automatically. Reconciliation happens in the background. Deposits are organized. Fees, if absorbed, are tracked and accounted for. The result? Month-end becomes a routine task—not a fire drill.
What’s more, the payment experience becomes a reflection of your broader service experience: seamless, thoughtful, and modern. It sends the message that you value your clients’ time and take the business side of your relationship just as seriously as the technical side.
Our approach is centered on reducing friction and making payments blend seamlessly into the MSP workflow. From invoice to deposit, it should just work.
That’s the kind of clarity and control MSPs need—not just to streamline operations, but to stay competitive. And as more MSPs modernize their back-office systems, the difference becomes increasingly obvious.
So what are those top-tier MSPs doing differently? Let’s take a closer look.
What Top-Performing MSPs Are Doing Differently
The MSPs who are furthest ahead didn’t get there by chance. They made intentional changes—early—that freed up resources, improved cash flow, and strengthened client relationships. And while their tools matter, it’s their mindset that really sets them apart.
Top-performing MSPs treat payment workflows as a core business system, not just back-office overhead. They evaluate billing processes the same way they’d assess a backup solution or a PSA: on reliability, efficiency, and user experience. If something slows down cash flow or frustrates a client, they don’t ignore it—they fix it.
These MSPs also build client trust through transparency. Instead of hiding behind outdated payment methods, they offer digital-first experiences that reflect their broader operational excellence. Branded portals, autopay options, clear history access—these aren’t just conveniences. They’re signals to the client that this is a modern, well-run business.
And it pays off. We’ve seen firms cut receivables by over 30% in a single quarter. We’ve seen finance teams reclaim hours every week. And we’ve seen clients enthusiastically embrace the shift—because when the process is easy, it becomes invisible. That’s what high-functioning MSPs are aiming for: frictionless operations that let them spend more time growing the business and less time managing paperwork.
But the gap between the MSPs leading this shift and those still lagging behind is only growing wider. And if you’re still operating in a check-based world, it’s worth asking: what’s the real cost of staying put?
The Cost of Doing Nothing
It’s easy to think of paper checks as a minor annoyance—a bit of admin clutter that isn’t urgent enough to fix. But the longer MSPs wait to modernize payments, the more costly that delay becomes.
Manual processes don’t just hold you back today—they compound inefficiencies over time. Each month spent reconciling checks by hand is another month of wasted staff time, mounting AR risk, and friction-filled client experiences. Left unchecked, these small inefficiencies grow into structural drag that makes your entire operation harder to scale.
Then there’s the risk of being left behind. As more MSPs shift to modern billing platforms, clients start to expect a seamless, digital experience. If your peers are offering one-click payments and self-service portals while you’re still mailing invoices, the contrast isn’t subtle. It’s a signal to the client that your business might be behind the curve.
You also lose the chance to improve your strategic visibility. Forecasting, budgeting, and hiring all become more difficult when cash flow is opaque or erratic. And the longer you tolerate guesswork in your financials, the more reactive your leadership becomes—unable to plan with confidence or invest at the right time.
Inaction feels safe because it’s familiar. But sticking with the status quo is still a choice—and it’s one that comes with hidden costs. Every day you wait, those costs quietly accumulate. And the longer you wait, the harder they are to untangle.
The good news? Making the switch doesn’t require a massive overhaul or a high-stakes gamble. With the right approach, you can transition away from checks gradually—without losing client goodwill or creating operational headaches.
How to Move Off Checks Without Disrupting Clients
Moving away from paper checks doesn’t have to mean forcing every client to change overnight. In fact, the most successful MSPs take a phased, thoughtful approach—one that meets clients where they are and gives them time to adapt.
Start by offering digital payment options alongside checks. The key is visibility: include secure payment links in your invoices, mention autopay availability in onboarding documents, and make digital the path of least resistance. Clients who are ready will naturally shift.
Use branded invoices and emails to guide behavior. A clean, easy-to-understand invoice with a prominent “Pay Online” button helps reframe expectations. It shows clients that paying digitally isn’t just possible—it’s preferred.
Segment your client communication. Long-standing clients may need personal outreach and reassurance that the new process won’t complicate things. Newer clients, especially those already accustomed to digital experiences, may require nothing more than a nudge.
And don’t underestimate the power of the portal itself. When clients can see their invoice history, manage payment methods, and toggle autopay in one place, they’re far more likely to adopt the system organically. The easier you make it, the faster they’ll follow.
And once you’ve built a payment experience that’s seamless and intuitive, the benefits extend well beyond collections. In fact, the way you handle payments can become one of your strongest differentiators in a competitive MSP landscape.
It’s Not Just About Getting Paid—It’s About Staying Competitive
Checks might feel familiar, but they’re slowing you down. They complicate your finances, create unnecessary delays, and frustrate the clients you work hard to serve. And because they’ve been around so long, many MSPs don’t even realize how deeply those issues run.
When you rely on checks, you’re dealing with unknowns: Will the check arrive? Is it filled out correctly? When will it clear? These are questions you shouldn’t have to ask in a modern business. Every one of them introduces hesitation into your workflow and anxiety into your team.
For many MSPs, paper checks also introduce a hidden operational tax. Someone has to open the mail, enter payment data, physically go to the bank—or scan and upload documents. That’s not just a time issue. It creates inconsistency, increases the risk of human error, and adds stress to month-end reconciliation. It’s not scalable, and it certainly isn’t sustainable as your client base grows.
Then there’s the brand risk. Writing a check and dropping it in the mail isn’t just inconvenient—it’s outdated. More and more, clients expect digital, self-service options. When you force them into a legacy process, you don’t just inconvenience them—you plant a seed of doubt about whether your MSP is really keeping up in other areas too.
Holding on to checks is often less about process and more about habit. But habits have a cost. They quietly shape how you operate, how you’re perceived, and how fast you can move.
Modern MSPs need better tools—not just to get paid faster, but to make every part of their operation run more smoothly. Rethinking how you accept payments isn’t just a financial decision—it’s a strategic one. It’s about protecting your time, strengthening your reputation, and freeing your team to focus on the work that actually grows the business.
Maybe it’s time to stop waiting on the mail and start building a system that works as hard as you do. The same clients who expect instant responses and seamless support don’t want to deal with envelopes, stamps, and uncertainty. When every other part of your business is optimized and cloud-native, holding onto paper checks sends the wrong signal—not just about your processes, but about your priorities.
Because ultimately, payment isn’t just a transaction—it’s a reflection of how you run your business. When the experience is smooth, modern, and efficient, it builds confidence in every part of your relationship with the client. And when it’s clunky or outdated, it creates doubt.
MSPs who modernize their payment processes don’t just save time—they gain momentum. They eliminate guesswork, elevate their brand, and free their teams to focus on what matters most. You don’t need another patch or workaround. You need a better foundation—one that matches the standard of service you promise and deliver every day.
If you’re still relying on paper checks, now’s the time to take a closer look at your accounts receivable process. A few small changes could unlock major gains in visibility, trust, and cash flow.
