In the auto transport industry, COMCHEKS are extremely popular in how auto transport brokers pay carriers. However, most of the general public may not be aware of what COMCHEKs actually are, as well as the benefits that they can offer. The following guide will provide a nice overview:
How Do They Work?
A COMCHEK is a type of payment that is used by auto transport brokers (or any type of freight broker) to pay carriers. They can be thought of as being similar to standard checks, yet with some very important differences. In addition to paying contract carriers, COMCHEKs can be used to:
- Purchase fuel
- Pay key vendors
- Provide advances
- Act as emergency payments
The company that provides COMCHEKs is COMDATA. They provide COMCHEKs in the form of an Express Code for a set amount. They are usually between 14 to 18 numbers and can be redeemed by those who receive them in the following ways:
- Cashed at truck stops
- Deposited into a bank
In order to redeem a COMCHEK, the person must have a physical COMCHEK blank, which looks just like a regular check, that he or she has to fill out. At a truck stop, the location has to accept COMCHEKs and may charge a processing fee.
At a bank, the person who wants to cash the COMCHEK has to call a number provided by COMDATA to get a special authorization number. Otherwise, the check will bounce, meaning that you will have to pay fees.
You can visit //www.gocomchek.com/gocomchek/assets/app/index.html for information about locations that accept it, as well as call: (800) 266-3282 to obtain an authorization number.
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Besides using COMCHEKs, a trucking company would be able to open an account with COMDATA so that they can issue their own personalized COMCHEKs directly to their employees. These can be the form of actual physical cards that would just like a debit or ATM card.
Positives and Negatives of COMCHEKs
As with anything, there are both positives and negatives, and COMCHEKs are no different. Some of the positives to using COMCHEKs are:
- Truck operators do not have to carry large amounts of cash or credit cards on them, which can improve their own safety and prevent any loss of money from occurring;
- Allows truck operators to receive their payment at a much faster rate, as well as helps their cash flow while on their route;
- Allows truck operators to have their own personal COMDATA accounts that they can deposit their COMCHEKs directly into.
There are three main negatives to COMCHEKs, though, which are:
- Not at all places currently accepts them;
- They do have processing fees that increase the higher the payment amounts are;
- It can be cumbersome to call to receive the special authorization number in order to deposit them into a bank.
There's a reason why COMCHEKs are extremely popular. Remember to visit:
http://www.comdata.com to learn more.