Mobile payments are moving past the hype and becoming a reality. Retailers are increasingly turning to mobile payments to speed up the checkout process and improve the customer experience. At the same time, consumers are also increasingly comfortable paying via their smartphones, and the growing popularity of contactless payment makes these transactions even more convenient.
Businesses that offer their customers the ability to pay via their mobile devices will enjoy a competitive advantage over their competition. Conversely, companies that stick with outdated payment methods are in danger of being left behind as the payment industry evolves. The market is changing, and the good news is that even small businesses can employ this in their operations. In time, it will create a wealth of opportunities for startups and established companies looking to stay competitive.
In this article, we will discuss the different payment options available. Read on below to learn more.
Cashless Transactions: The Future of Payments
Today, there are four primary categories of digital payment options. These are:
Point-of-Sale (POS) System
Most POS systems use a single software solution for all hardware solutions, so the hardware may be changed without changing the software. Additionally, most POS systems have a backup server system in case of hardware failure or a Dropbox-like feature that allows the system to be accessed in case of internet or power loss.
Many cash registers also have built-in printers to print receipts for the customer and contain a magnetic card reader that allows the record to securely and conveniently process payment from credit or debit cards.
Have you ever given your credit card number to a business over the phone when you order delivery or takeout? If so, you’ve used virtual terminal technology. Virtual terminals are ideal because no one has to be physically present for payment.
While a retailer could also use it to accept remote payments, they may also require additional methods of verifying a charge, especially if a remote payment amount is higher than usual. These verification methods usually involve the three-digit CVV (card verification value) number on the back of a credit card.
Online Payment Gateway
Online payment gateways are a form of online payment processor. They are often cloud-based, so the service can connect directly to your website or digital product. The service transfers money securely, via the internet, with minimal involvement from you or your staff. The purchase of digital products can, in some cases, be automated.
Online payment gateways ease the financial burden for you, the person or business selling the digital product. They are an affordable choice for many online vendors. They also remove the need to have a merchant account, which can be expensive and time-consuming.
Automated Clearing House
ACH payments are an automated payment method, which means that you can use them alongside your credit card payments. The payment is instantly processed and transferred to your bank account, so you don’t have to wait around for the customer to pay you.
The payment details then go to your bank account. In essence, ACH payments are similar to wire transfers, so you should see a large deposit in your account, and the funds should clear within a few days. You can then use the money as you would have done with a credit card payment.
Digital payments are the future of commerce, which is why you should implement them as soon as possible if you’re a business owner. Since there are different kinds of digital payments that you can integrate into your business, you can take the time to compare which among them suits your needs best.
ProSource provides top-quality services for setting up payment processing systems for small businesses. We understand that you have many things to worry about in managing your business, so our process is very simple because all it takes is an application. Contact us today to learn more!