Last 2018, a Federal Reserve study found that automated clearing house (ACH) payments surpassed check payments–making it the first time in history. As time passes, cash and checks are becoming less popular, so it might be wise to bid our goodbyes to these payment methods for good.
Nowadays, businesses risk losing clients and falling behind if they do not accept electronic payments. After all, we’re living in a modern, fast-paced environment filled with digital innovations all over the globe. If your competition is offering electronic payments as their payment method and you’re not, you’re risking losing that precious sale.
If you’re thinking about using electronic payments for your business, here’s what you need to know:
Understanding Electronic Payments
E-payments and electronic financial transfers are payment methods that are digital money transfers that replace the usage of cash and checks. This is becoming more popular among e-commerce businesses that require online payment from their clients. At the same time, businesses are still open to accepting debit and credit card purchases in person.
The Types of Electronic Payments
Take a look at electronic payments on a larger scale. These payments are frequently categorized into two types:
One-time or one-off payments are used when a consumer uses a credit card to purchase food, clothing, or other products in just a single transaction. If they want to purchase another product, they need to repeat the process.
Recurring payments are made available for customers who are, let’s say, subscribed to a monthly streaming platform. The payment is made automatically on a predetermined day, whether monthly, quarterly, or annually.
During checkout, payment information is manually input, or a physical card is processed through a point-of-sale system. This benefits both businesses and consumers by offering:
Enhanced Comfort and Efficiency
Customers prefer electronic payments because they are more convenient. This is critical since consumers are increasingly looking for convenience in this fast-paced, busy world. And as a business, electronic payments are sent immediately to your POS system, saving you time and money.
Accepting electronic payments incurs processing fees, which might be intimidating. Regardless of the added cost, having many payment options can help your company’s bottom line.
Improved Customer Relationships
Customers nowadays want diversity. This holds true for payment methods as well. Requiring customers to utilize a specific payment method may result in a negative customer experience. Because of this, it’s crucial to give your customers the variety they want, on top of more options. This can help you close more sales and maintain the trust of your loyal fans.
Technically, all of the electronic payment options work in the same way: through electronic funds transfer (EFT). This is becoming the universal transactional language for almost all businesses in the world today, meaning you must keep up with it now. With varied payment options, you open your business to a wider audience and cater to more people’s needs, all while making more profit!
Are you in need of a better payments system? ProSource is a Wisconsin-based firm with expertise in ATMs, payment processing, and corporate finance. Our wide experience in several industries sets us apart. With us, collaboration is key to ensuring businesses make the best business decisions given their unique personal and professional circumstances. Call us today for more information!