Check printing charges definition
/What are Check Printing Charges?
Check printing charges are the fee imposed by a bank when an account holder orders additional check stock. The fee is typically run through the account holder's bank account, and appears on the monthly bank statement as a deduction.
The amount charged as check printing charges vary, depending on a mix of the following factors:
Customization. The inclusion of logos, special fonts, or unique designs often increases costs. Enhanced security measures like watermarks, holograms, or heat-sensitive inks can also add to the expense.
Volume. Ordering checks in bulk usually reduces the per-check cost compared to smaller orders.
The provider. Banks often partner with check printing companies and may charge a premium for convenience. Conversely, independent providers, such as online printing services, can be less expensive but may lack certain custom features.
Type of check. Basic checks are less costly than those designed for specialized accounting software or those formatted for multi-copy use (e.g., carbonless duplicates).
Shipping and handling. Delivery fees can add to the total cost, especially for expedited or international shipping.
Frequency of reorders. Businesses that order checks regularly may negotiate lower rates with the provider.
Accounting for Check Printing Charges
The account holder charges this amount to expense as incurred. The expense is classified as an administrative expense, since it is not related to the cost of goods sold. Check printing charges are not capitalized, even though the related check stock may not be completely used for an extended period of time; the reason is that this expenditure is too minor to be classified as an asset.