Digital payments have become very popular and are accepted at a greater rate by merchants worldwide. Merchants have come to realize that when they offer a service that is faster and better, more people will choose them over the other options available. Digital payments can be used for sales on the internet, for real time payments such as PayPal, and can even be used in place of checks. If you have an existing business but are looking to increase your sales, you may want to look into accepting digital payments. This way you can continue to expand while having better control of your finances. Why are digital payments better than checks?
Checks allow for complete anonymity. A person that makes a purchase using a check and pays with a credit card will not reveal their full identity until the check has cleared. This is not possible when a person makes a purchase online or over the phone. This type of payment allows for human error and the chance that the person who issued the check has not authorized their charges, allowing for fraudulent activity.
Checks cannot be negotiable. A person can not buy or sell something that is not approved by a check and this includes any online transaction. When a check is used instead of a credit card, it is impossible to do any kind of transaction online. The buyer must go through the payment gate, which can take hours, and complete the transaction.
Checks cannot be pre-paid. This is important if the merchant is expecting large volumes of online transactions. Any time a customer makes a purchase, the merchant has to receive money from the customer in order to process the transaction. If a pre-payment has been made, the merchant has to wait for the customer’s check to clear before being able to process the sale. This waiting time can cause a lot of problems for merchants and consumers alike. Why are digital payment transactions better than checks?
Digital payments are often fast. It only takes a second for the consumer to complete a payment online. This is much faster than what it takes for a check to get to its recipient. This is also ideal for smaller businesses that may be subject to slower computer networks. When a check travels through a slow network, chances are that it will need to be processed sooner than what is needed by a digital payment. Why are digital payments better than checks?
A paper check is paper. A paper check can get lost, misplaced or destroyed. When electronic check processing is done, there is no need for the check to be shredded or destroyed because it is digitally signed. The customer can always get a proof of payment if they need to, which eliminates the need for the check to be delivered physically.
If there is a discrepancy between the amount of money that was charged and the amount that was received, it can be easily reconciled using an electronic check instead of a paper check. When a customer swipes their debit card to make a purchase, they can make sure that the amount of money charged is exactly what has been debited from their account. With a paper check, if the amount does not add up, it is a hassle to go to a local bank to get verification of the transaction. When an electronic check is made, the customer can view the transaction immediately and try to reconcile the difference themselves.
The reasons that people use digital payment services are many. Most use them for online purchases and for things such as gift cards. Since electronic checks are more secure than paper checks, they are preferred over paper checks all around the world. If you want convenience and speed, try a digital payment service for all of your financial transactions!