Skip to content
Noble Ledger Documentation
Blog

Problem with Traditional Payment Approvals

The Problem with Traditional Payment Approvals: Why NPOs & Condo Boards Need a Change

Introduction

For Canadian non-profits (NPOs) and condominium boards, financial oversight is crucial. Yet, many organizations still rely on outdated, manual payment approval methods—primarily cheques that require dual signatures. While this traditional approach was once a gold standard for financial control, it has become increasingly inefficient, costly, and vulnerable to fraud.

Noble Ledger Inc., utilizing Plaid’s API, is revolutionizing payment approvals by providing a secure, digital, and real-time alternative that maintains the necessary oversight while vastly improving efficiency. This article explores the core problems with traditional cheque-based payment approvals and why a digital transformation is overdue.

The Challenges of Traditional Payment Approvals

1. Slow and Inefficient Processing

  • Delays in obtaining signatures: Coordinating two signatories for every cheque can take days or even weeks if board members are unavailable.
  • Physical presence required: Signers often need to be in the same location, requiring in-person meetings, couriers, or mailing cheques.
  • Time wasted on administrative work: Preparing, printing, signing, and mailing cheques adds unnecessary workload for staff and board members.

2. High Operational Costs

  • Cheque fees: Banks charge for issuing, processing, and reconciling cheques.
  • Courier/mailing expenses: When signatories are not available, courier services or express mail add extra costs.
  • Lost time: Delays in cheque approvals lead to late payments, resulting in potential penalties or strained vendor relationships.

3. Security & Fraud Risks

  • Forgery & alterations: Cheques can be altered, forged, or stolen, leading to unauthorized transactions.
  • Lack of real-time oversight: Boards typically approve payments after they’ve already been issued, increasing the risk of undetected fraud.
  • Duplicate payments: Human error can lead to duplicated transactions, causing unnecessary financial losses.
  • Vulnerability to embezzlement: If internal controls fail, rogue employees or board members can exploit gaps in cheque approvals.

Why NPOs & Condo Boards Need a Change

With the increasing availability of secure financial technology, organizations no longer need to rely on slow, outdated cheque-based approval methods. Canadian NPOs and condo boards must embrace modern digital solutions to:

  • Speed up approvals by enabling remote dual approvals through secure online platforms.
  • Reduce costs by eliminating cheque-related expenses and manual processing.
  • Enhance security through encryption, audit trails, and automated fraud detection.
  • Ensure transparency with real-time tracking and digital documentation of every payment.

How Noble Ledger Inc. & Plaid Provide a Better Solution

Noble Ledger Inc. has integrated Plaid’s API to offer a seamless, digital-first payment approval system tailored for NPOs and condo boards. Here’s how it works:

  • Dual Digital Approvals: Just like traditional dual signatures on cheques, Noble Ledger ensures that two authorized board members must approve every payment before it’s processed.
  • Real-Time Bank Integration: Plaid securely connects to the organization’s bank account, providing instant updates on balances and transactions.
  • Automated Budget Controls: If a payment exceeds a certain threshold or pushes a budget category over its limit, the system automatically flags it for further review or board approval.
  • Vendor Authentication: Organizations can pre-approve vendors to prevent fraudulent payments.
  • Enhanced Security: With end-to-end encryption, multi-factor authentication (MFA), and audit logs, every transaction is tracked, reducing fraud risks significantly.

Conclusion

The days of relying on slow, frustrating, and error-prone cheque-based approvals should be over. Digital payment approvals not only streamline processes but also improve financial oversight and security. Noble Ledger Inc., powered by Plaid’s API, offers a faster, safer, and more transparent solution for NPOs and condominium boards. By modernizing payment approvals, organizations can focus less on administrative bottlenecks and more on their mission.