A jump in postal rates is causing banks to think outside the box.
Venders contracted by at least two financial institutions are no longer sending personal and business checks in boxes. Instead, the banks are shipping the items as flat mail that require customers to assemble the containers themselves.
Cleveland-based National City Bank recently switched to using the expandable boxes.
The change makes economical sense in light of increased postal rates that went into effect last spring, said Kelly Wagner Amen, a spokesman for the bank.
"We have had no complaints. The system maintains a consistent customer convenience and experience," she said.
The shipment includes check booklets, flattened box, and step-by-step instructions with illustrations on putting the box together.The trickiest part of the process might be filing the checks in sequential order to have the lowest check number on top.
Deluxe Corp., the provider of personal and business checks that contracts with Fifth Third Bank, is using the expandable box for bank customers.
Laura Bruce, of the online bank monitoring firm bankrate.com, was unaware that banks have began using flat mail in lieu of the traditional box form to send checks. But, she said measures to reduce costs in transactions are often adopted in the banking industry.
"This will probably result in less costs to the banks. It is just another way to save some money," she said.
The firm contracted by Toledo Area Community Credit Union, which operates five branches in the area, is still sending checks to customers in boxes.
Julie Linch, senior vice president of member services, said the more economical flat mail system would be attractive because shipping costs are paid by the financial institution.
"We might see those changes happen," she said.
Maureen Brown, spokesman for Huntington National Bank, said checks are being sent to customers in boxes.
Contact Mark Reiter at:
markreiter@theblade.com
or 419-724-6096.
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