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Many people think of credit cards when discussing an electronic payment solution. However, there are other reliable options available. All offer varying benefits. Thanks to advancements in technology, businesses now offer their clients fast and convenient payment services. Standard payment options favored by companies include paper checks, ACH payments, and credit and debit card acceptance. Let’s take a brief look at all solutions and learn which pays your business fast.
Slow and inefficient is the way of the paper check. However, they are still a mainstay in the payment world if you are looking to appease all your clients. Reasons this solution is losing favor with business owners include:
- If mailed, paper checks need at least 3-5 days to arrive before the payment even starts to be processed.
- Paper checks are cumbersome. They require manual endorsement and posting and must be hand-delivered to your banking institution for processing.
- Many people don’t take the time to comprehend the cost of accepting paper checks. From start to finish, including mailing and person-hours spent, the average paper check costs your business between $4-$20.
The exact time checks take to clear varies depending on the financial institution. Different banks have varying policies for their services. When it comes to clearing the paper check, two banks are involved – the customer’s bank and your business bank. As such, the process takes much longer.
Compared to paper checks, ACH payments are an effective electronic payment solution. The platform is constantly evolving to offer more convenience. For example, same and next day funding on ACH payments is routinely offered nowadays. Speedy funding means businesses get paid fast, and cash flow is more consistent.
Additional reasons ACH payment are climbing the rankings of electronic payment solution ladder include:
- ACH transfers are incredibly low-cost when taking into account the card processing fees or paper check processing times.
- Due to the low cost and automatic nature, ACH payments are preferred for recurring payment transactions.
- Significant time savings are realized with ACH – there is no need for the payment to be mailed or manually entered.
Card payments generally reflect a business’ bank account within 24-48 hours after closing the batch. As such, this electronic payment solution is consistently quickly than ACH payments and paper checks. There are even instances where funds are available within seconds after a transaction is approved. This eliminates the waiting period associated with other electronic payment solutions. Additionally, most individuals have access to a debit or credit card these days. The convenience means you’ll pay a higher processing fee for the ability to accept card payments, but the benefits often far outweigh the costs. These benefits include:
- Eliminates the NSF check payment. You will know immediately if the transaction is approved or declined.
- Consumers today expect to pay via credit or debit card. Adding the platform legitimizes your business and can increase future sales.
- Card payments are secure, and the risk of fraud is minimal.
In conclusion, businesses must provide a wide array of payment options to satisfy their client base. However, each electronic payment solution has benefits and disadvantages. It’s essential to know your customers and offer the payment options they require. If you’re looking to get paid quickly and need assistance creating the perfect payment for your business, give Payment Savvy a ring. Since 2010, our knowledgeable team has developed fast, secure, and custom electronic payment solutions for businesses across the country. We look forward to providing you with a custom payment solution to fit your immediate needs and future goals!