Advancements in payment technologies and processes continually push consumers into using cashless transactions. Why? Primarily because digital payments are far more convenient than cash. And convenient payment processing should be one of the top priorities for any small business today.
What are digital payments?
Digital payments (aka electronic payments) are cashless payment methods that involve the transfer of funds from one account to another typically over a wired Internet or mobile connection. The payment sender must have a bank account as well as a device (credit card, debit card, mobile phone, etc) that allows them to access their account and transfer funds. Likewise, the party receiving the funds must have an account into which the funds may transfer, and the means to accept any particular payment type.
A number of different types of digital payment options are available, including:
In-store. The most common type of payment is still done using credit or debit cards. The consumer either inserts/swipes their card, waves over, or taps the card on the vendor’s point of sale device.
Mobile payments. Using mobile “digital wallet” apps like Apple Pay, Google Pay, et al, consumers can set up their credit or debit cards to be used with their mobile device.
Online payments. Online payment solutions may include accepting credit card payments on your website, accepting eChecks or direct transfers, click-to-pay email invoicing, and automatic bill pay.
How digital payments are more convenient than cash
The primary reason to use digital payments instead of cash – both for consumers AND for business owners – is their sheer convenience. Anyone who’s used some of the more modern methods of digital payments knows that the ease of the transaction can be such a delight. They are fast and seamless.
With digital payments tool, there’s no need for the consumer to plan in advance to have cash on hand nor to risk losing it. They can even store some gift cards or loyalty cards using a mobile app, which again reduces the risk of loss. With a simple swipe or tap, the transaction is complete.
Making payments online either through a bill-pay process (manually putting through each transaction) or by scheduling automatic payments can make a consumer’s life so much easier. It also assures a faster, more secure payment to the business owner.
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Most people are not prepared to make high dollar sales for services or products (like home appliances) using cash. While writing a check may be an option, checkbooks tend to be clumsy to carry. Checks can also bounce, creating a whole other set of issues for the business owner. With digital payments, there’s no need for a business to perform a credit check. Debit or credit cards, or even mobile wallets, are MUCH easier and a more secure way for all involved to process a purchase and Bitcoin News.
Set Up a Mobile Payment System
More and more small businesses are implementing digital payment processing systems because of the ease of acceptance as well as the convenience both for themselves and for their customers.
Of course, businesses are wise to be cautious when selecting a digital payment processing partner. First, it’s critical to understand all costs and fees involved. A good partner will make their fee structures both simple and transparent. Second, in this day and age of fraud, hacking, and system outages, a good payment processor must also be able to confirm details and statistics regarding their system capabilities and network reliability.
Position your business as an early adopter of these newer technologies. It will demonstrate that you are on the cutting edge of new trends. Find a payment processing company you can trust to learn about ways to accept digital payments immediately.
Hello, My name is Shari & I am a writer for the ‘Outlook AppIns’ blog. I’m a CSIT graduate & I’ve been working in the IT industry for 3 years.