In Part 1 of this three-part series, we did our best to convince you that paper checks are quickly out of date. Many companies see wisdom in moving to digital payment methods for B2C (business-to-business) and B2C (business-to-consumer) payments. In Part 2, we will explore alternatives to paper checks.
ALTERNATIVE PAYMENT METHODOLOGY
Customers want alternative ways to make payments. Companies want to make the entire payment process easier, more attractive to their customers and more efficient for their employees.
For many companies, the pandemic has finally been the catalyst for them to transform their augmented reality operations to make it easier for customers to pay digitally. As the use of the check decreases, the digital
EFT and ACH
Electronic Funds Transfer (EFT) is a process of electronically transferring money from one bank account to another. These transfers can be made through multiple financial institutions. Wire transfer transactions are done online and do not require the assistance of bank employees.
An Automated Payment Clearinghouse (ACH) is a type of electronic money transfer that moves funds between banks in the United States. These transactions are operated by the National Automated Clearing House Association (NACHA), a nonprofit organization operating under the Federal Reserve.
Automated clearinghouse (ACH) transactions can be balances (money credited to a bank account) or debits (money deducted from a bank account). Transactions are collected and processed in batches, usually three times each business day. ACH transactions may take one to three business days to complete, but same-day processing is a goal for credit transactions.
Credit cards and debit cards
It costs more to process credit and debit cards than it does to complete automated clearinghouse transactions. But the card processing time is almost instant. Also, with credit/debit transactions, there is no risk to the merchant due to insufficient funds, which is a possibility with ACH transactions.
Suppliers may be reluctant to accept large volumes of credit card payments due to processing costs. However, there are ways to offset the fees. They can partner with an integrated payment processor offering
Virtual Credit Cards
A virtual card is a completely virtual copy of a credit card. No need for plastic. Virtual card issuers provide a temporary card number that buyers can use to make online purchases and pay bills. These virtual cards provide an additional level of security because they do not provide the user’s personal information or bank account details. In the event of a data breach, there are no sensitive materials in the file.
Digital wallets – or e-wallets – are online services or software applications that allow buyers to securely store their payment information. With digital wallets, customers can keep money on hand (virtually) for future purchases, make transactions, and track payment history.
Online payment services like Paypal that offer digital wallet feature can make
Simplified payment processing designed to scale.
As you can see, various digital payment methods are available. But which one will work best for your clients and your business? This is where the experience and expertise of a digital technology partner comes in.
The right payment processing software can speed up and automate payments, reduce manual processes, speed up cash flow, increase revenue, and enable your critical employees to perform more impactful activities, all while saving you money..
Our Versapay experts transform augmented reality departments to increase efficiency and cash flow by connecting you to your customers via the cloud. We are committed to making billing and payment easy for buyers and sellers.
In Part 3 of this series, we’ll make some suggestions for moving B2B (Business to Business) customers to digital payment methods while still accommodating customers who prefer check payment.
Do you have questions for our payment processing experts? At Versapay, we are committed to helping you find answers.
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By Versapay, www.versapay.com