Fast forward to today, and debit and credit cards are only the tip of the iceberg, as digital payments have become the norm. There has even been talk of cash becoming obsolete. Though certain experts insist this won’t happen for quite some time, an ever-growing number of people are taking it upon themselves to refrain from using cash whenever possible.

What Are the Advantages of Using Digital Payments?

Early in the rise of non-cash payment options, people were somewhat leery of such a concept. Many still are, but the number of people who take advantage of digital payments far outweighs the number who avoid them. With so many advantages for paying bills and purchasing items digitally, the decision between cash or digital payment has increasingly come to favor of the latter.

Speed and Simplicity

Speed and simplicity are two of the most renowned benefits of digital payments. A major issue with cash is simply that it’s tangible, takes up space, and is always at risk of loss or theft. New technology is all about efficiency, for example, smaller devices, sleeker car designs, and wireless technology. Cash is made of paper and ink, subject to the wear and tear, pressing, sliding, folding, and ripping due to constant usage.

Cash can be cumbersome to carry and use. Who wants to carry loose change around in their pockets? Additionally, cash holds physical value. If I drop twenty dollars on the ground at the department store and someone finds it before I do, I’m suddenly down twenty dollars.

Check payments are not convenient. Writing a check in a busy grocery store line is time-consuming and awkward, while check readers are notorious for giving cashiers fits. Individuals also have to balancing their checkbooks, where a minor mistake can cost hours.

Merchants loathe checks, as it can take basic bank transfer days to complete. Check deposits typically won’t be applied to a store’s balance for several days.

Digital payments are as simple as a tap or a swipe, and a transaction takes only a few seconds. Slim cards require minimal space, thus efficient and easy to keep track of. Though they can be lost, canceling and replacing a card usually does not impose losses as with cash. Apps and online accounts eliminate time streamline personal finances and greatly reduce the risk of problematic oversights.

As digital payments are virtually instant, they give merchants near-immediate access to revenue. In turn, they can use it as needed rather than having to wait for it to appear in their accounts.

Digital payments are overall simpler and faster than cash or checks, allowing customers and merchants to enjoy the free-flowing convenience.

Flexibility

Digital payments also offer far more flexibility than cash. It’s no secret that cash has its limits. Many people no longer carry enough cash to make large purchases. Recent studies show that people spend anywhere from 80 to 100 percent more with cards than with cash because they have more purchasing power through digital means.

Online shopping can’t be overlooked, either. Globally, people spent an estimated $4 trillion online during the last year for which information is available. That figure is expected to surge to new heights during the coming years. Establishments that offer their customers a convenient online payment options will certainly benefit from the resulting spending increase. Those that don’t will miss out on not only local revenue but regional and even global sales as well.

Greater Security

Digital payments come with greater security too. No doubt, there’s a great deal of concern over the safety and privacy of online shopping and the use of credit and debit cards. With the use of the right payment platforms, both customers and businesses can enjoy unprecedented security. 

From online payment solutions to in-person point-of-sale terminals, digital payments have become more secure than ever. Numerous levels of encryption have come into play, and a long list of additional security features is now available. From basic PINs to multi-level biometrics, today’s digital payment options offer numerous layers of security.

While it’s certainly true that bank accounts can be hacked and credit/debit cards can be stolen, all the security features in place today help to thwart the dangers. Lost credit or debit cards come with a substantial level of fraud protection, so losses can be mitigated with a mere phone call. Credit/debit cards can also be reported stolen and immediately deactivated.

Exploring the Different Types of Digital Payments

Considering all the advantages of digital payments, it’s clear why they’re becoming the rule rather than the exception. In addition, several types of digital payments now exist. That gives consumers even more freedom during their shopping and bill-paying adventures. It also gives merchants more ways to benefit from the available options.

In short, digital payments encompass any type of transaction that’s completed online or using a card rather than cash or check. Not every establishment will have the full range of digital payment options, but they can select the ones that deliver the most benefit for their clientele. Many of these payment options help merchants elevate revenue by giving patrons more freedom and encouraging them to spend more.

Mobile Points of Sale

On the most basic level, mobile points of sale are gaining a great deal of popularity. They allow merchants to transform their mobile phones, tablets, and other devices into point-of-sale terminals. By simply setting up an mPOS system, merchants can accept digital payments from customers anywhere Internet service is available.

These are often then used as in-store payment systems, but they’re not limited to stationary purposes. Whether you’re operating a food truck or traveling around selling homemade soaps at a crafts fair, a POS can offer significant advantages. They’re convenient, flexible, and secure for both vendors and customers.

Contactless Payment Options

Contactless payments are becoming increasingly common as well. They offer even greater speed and simplicity than their predecessors. If a customer’ card displays the wireless icon, they can simply tap their card on a point-of-sale terminal, and their transaction is complete. With these terminals, consumers can also simply hold their phone next to the reader to pay by NFC, essentially a radio connection known as NFC (near-field communication), which is essentially an exchange by radio.

In summary, contactless terminals essentially tap into the consumer’s card or mobile device to allow purchases or payments without having to touch the card reader itself. That has certainly become a very appealing feature in the post-COVID era.

Making the Most of Digital Payments

Digital payments have now outpaced cash and checks. In view of their speed, convenience, and security, they’ve become the preferred option for both consumers and businesses. A variety of digital payment solutions is now available, and the list will certainly grow as we move forward.

Xpress-pay is here to help clients and their customers take full advantage of the options at their disposal. We offer a range of digital payment solutions to suit the needs of virtually all businesses, organizations, and governments. Our team is proud to provide clients with superior security, unmatched versatility, and affordability, so you can enjoy all the benefits of digital payments no matter what your unique requirements may be.

To learn more about this, and all Xpress-pay can do for your organization, schedule a call with one of our team members at (607)753-6156, email us at sales@xpress-pay.com, or enroll now at https://info.xpress-pay.com/sign-up/

If you are managing properties, you know how critical cash flow is to your business. Without steady revenue provided by online rent payments, you cannot pay your administrative staff, perform necessary maintenance, pay property taxes, or set aside funds for new property acquisition.

In fact, cash flow issues are the number one headache for landlords. If you are a smaller operation where rent payments are vital to meeting mortgage demands, cash flow problems can easily cascade into other areas such as maintenance and foreclosures.

The situation is serious. According to one source, it is possible that tenants currently owe as much as $70 billion in overdue rent payments in the United States. As the COVID-19 pandemic drags on, the situation is only growing more complicated.

Why Paper Transactions Don’t Make the Grade

In the “good old days”, your tenants could pay you by cash or check. In today’s world, this is no longer the best option. Why?

First, when tenants pay by cash, there is no verifiable paper trail. Sure, you can provide tenants with receipts, but what if they get lost? There’s no way to identify those funds once they’re comingled with other cash. Also, the act of issuing one-off paper receipts is time-consuming and harder to manage over time.

Second, accepting cash payments requires you to secure those funds in a safe place until they can be deposited.

Third, accepting paper checks will cause additional delays in cash flow due to the deposit and clearing process.

Finally, given that some checks may be lost or be returned for insufficient funds, accepting checks as a standard form of payment has become far more work than necessary.

How Online Rent Payment Solves Cash Flow Problems

Allowing tenants to pay rent online instead of by cash or paper check will dramatically improve cash flow in several ways, including:

Shifting demographics: Most adults are becoming far more comfortable paying rent online because they are already paying for many other living expenses this way. This shift is even affecting every age group: Money Magazine recently determined that millennials (those born between 1981-1996) pay over 60% of their bills using an online method, while seniors pay over 40% of their bills this way.

Convenience: An online rent payment platform makes it much easier for tenants to pay in a timely manner because you can provide several payment options. Credit card or debit cards can be used though some may prefer to pay by electronic check (eCheck), which allows them to submit bank account information for an ACH transaction.

Tenants can also make online payments any time, from anywhere. They no longer have to wait for your office to be open, nor do they have to be in town to personally deliver cash or a check. Some tenants may also receive financial assistance from out-of-town relatives to pay their rent. Offering a simple way to pay someone else’s rent this way can help secure both their and your interests.

Recurring Revenue: An essential feature of any online rent payment platform is the ability to remain current through an auto-pay schedule to submit a transaction on the same day each month. Their payment information would be securely stored in the ePayment system so that tenants will not have to log in every month to pay.

Help reduce fraud and NSF: With an online payment system, you begin to reduce the risk of the many issues of traditional payment methods. With online credit card payments, transactions are processed immediately. If issues arise, the transaction is declined instantly so the tenant can handle the situation themselves. eChecks are also submitted to the Federal Clearing House instantly. This vastly accelerates clearing time. If an eCheck is returned, you’ll typically be notified by email to handle the situation promptly.

Fingertip management: Because your payment platform can integrate with 3rd Party systems such as QuickBooks Online, you can eventually have access to real-time reporting data. You will know which of your tenants are paying on time, and which need attention.

Receive More Than Just Rent Payments

The really great thing about an online payment solution is that it can do more for you than simply receiving payments from tenants. Here are just a few other ways you can leverage this technology to help secure your interests:

Application fees: If you currently charge a fee for processing rental applications, this type of payment can easily be processed online rather than manually. This is especially helpful when working with prospective tenants that don’t live in the area. When someone wishes to relocate promptly, secure their business by streamlining the process.

Security deposits: When engaging new tenants, you can accept their security deposit and advance rent quickly and easily with an online payment option. As you already know, waiting on these deposits can hold up commitment and possession so the faster the funds clear, the better the experience will be for everyone.

Repairs and maintenance: Over time, repairs are inevitable when renting. Giving renters a faster way to pay for any issues means they will benefit from the work sooner.

Miscellaneous fees and charges: Want to reclaim the costs associated with running credit checks? Does your tenant need additional entrance keys? Are you handling a difficult lockout situation, and tenants need to pay? All these situations may require you to secure additional funds from your tenant. Online payment processing can help you to get the funds you need and remove administrative bottlenecks.

Enhanced Tenant Acquisition & Retention

As an astute property management professional, you realize that it is in your business’ long-term interest to retain quality tenants.

Providing your clients with the most relevant and convenient ways to manage their finances is a simple yet powerful way to both attract renters and keep them longer.

This will inevitably translate into higher occupancy rates, lowered associated costs (advertising, credit references, lease negotiations, etc.), and more stable cash flow. Pretty great, right?

But What About the Payment Processing Fees?

Yes, there are payment processing fees associated with accepting ePayments and they can add up quickly. This is especially true since they are charged against your top-line revenue.

However, there are tools available to help you offset these costs. With Xpress-pay, our payment portal is unique in that we become your 3rd party bill delivery service. This means we can charge tenants a separate, nominal “Site Fee” during payment. This powerful tool has helped our clients across several industries recover a substantial amount of revenue over the years. From single dwelling operations to national franchises, every dollar matters.

In Conclusion

As you can see from the above discussion, the reasons for adopting an online and mobile payment solution in your business are plentiful and there are virtually no drawbacks. It’s time to take that next step. Connect with us to discuss your thoughts on everything above and give us the opportunity to answer any questions you may have.

If you are of a “certain age” (like me!), you might remember what it was like to go with your parents to the gas station (with me, it was usually my dad) and have him say, “A dollar’s worth, Mac.” In those days, people always carried cash and unless the expense was considerable, they always paid for things that way.

That was also true when the family vehicle acted up or there was an accident and a tow was needed. When you got there, you had to figure out how to pay the operator. If you were in your hometown and the tow and service business knew you, you might have the option of paying by check. What if you were out of town? Good luck with that…it was cash-on-the-barrelhead, or you were not getting your vehicle.

Of course, credit cards changed things for the better — at least it was a little better, but not a perfect solution. Think credit card fraud… and those payment processing fees – ugh! And you’re still at risk of getting all those GOA’s. Could there be a better way for independent towing services?

Yes, there is a better way! Plus, if you are like 99% of all people in the U.S., the “solution” is probably in your pocket right now – your smartphone. For others, it might be a tablet you own. Yes, thanks to modern technology, these portable devices make it possible for customers to send payment using either your or their mobile device. Isn’t that amazing?

How Do Mobile Payments Work for Tow Truck Operators?

Let’s take a look:

One approach is to dispatch a driver to the tow site. If the customer doesn’t have a smartphone, then your driver can let them handle the transaction on the driver’s smart device. Since none of the information is stored on either the driver’s device, app, or the website used to make the payment, the customer can rest easy knowing their sensitive information is being properly handled. This also means the payment can be confirmed before the operator ever touches the vehicle.

Going this route means no more driving customers to an ATM, waiting for delayed payments, or worse… bad checks. This is also great for when the customer is still on-site when the tow operator arrives, but it still leaves you open to GOAs. How can you get around that?

Well, another approach works when the customer has a working smartphone or other connected device. Your dispatcher sends a text message or email with a payment link. The customer clicks the link, pays the bill, and you’ll see the transaction process before the truck is even dispatched.

This is a perfect solution since you never actually see their sensitive account numbers, an important factor for customers who are wary of sharing this information. Once the payment is processed, you dispatch a team to handle the call. This is an excellent approach for towing services that have centralized dispatch services. This means you’ll reduce GOAs because you’ve already been paid. Also, when customers complete the payment on own their device, they’re far less likely to charge back the payment later.

Both approaches also reduce how much time it takes to complete the job. This means you can serve more customers in the same amount of time, helping reduce the risk of accidents for you, your drivers, and customer. All good things.

What Are Some Typical Mobile Payment Options?

Handling mobile payments for towing companies provides many options:

There are options for accepting credit and debit cards.

Electronic Checks (eChecks) are another payment option you can offer. They work similar to paper check, but are processed completely online. No paper to manage or bring to the bank to deposit. While all checks take time to clear into your account, eChecks are submitted immediately so the funds typically land in your account much faster, helping improve cash flow. The transaction fees associated with accepting them is usually much lower than credit cards, too.

With the right systems in place, accepting mobile payments also makes it possible to capture transaction information and download it to certain bookkeeping systems, like QuickBooks Online. This eliminates the need to make manual entries. The information is seamlessly integrated into your existing online QuickBooks account to keep your Accounts Receivables current.

In the past, it was difficult for towing services to accept any electronic payments because it required the use of special terminals or card readers either in the dispatch office or by the drivers. These devices were bulky, expensive, and for most, clunky. Phone line-based card readers were notoriously unreliable, and with age, lost their ability to read card stripes on older cards. Typically, there would be monthly charges to rent this equipment from the payment processor. Thankfully, those days are over.

Today’s systems eliminate all that hassle and virtually all the out-of-pocket expenses. Depending on the software provider you select, your driver or customers can now use their card to pay before the truck is dispatched, as soon as it arrives, or after the job is complete.

One of the newest market trends is the QR codes (square bar code) that customers simply scan with their phone to pay. These codes can be customized for each driver to help simplify tracking payments and productivity. They also reduce the amount of time it takes for the customer to pay on-site, reducing overall driver exposure.

What Improvements Can Be Expected?

By switching to a mobile payment solution for tow services, you can expect to enjoy these benefits and more in a relatively short amount of time:

A reduction in write-offs: With a mobile payment solution, you will know right away if your payment is declined. This means fewer write-offs due to fraud or bounced checks, and fewer card disputes from customers who don’t remember the charge.

No card readers: Forget the cost and hassle of renting EFT/POS terminals and card readers because there are none, and you won’t need to bother customers for a signature.

Make it easier for people to pay: Drivers stranded on the side of the road will usually first Google “tow services near me”. If they see on your homepage that you accept online or mobile payments, they’ll be more inclined to choose your services because of the convenience.

Heightened security: Customers are often reluctant to hand over large amounts of cash to someone they don’t know – if they even have much cash on hand at all. They will be more trusting of a service that accepts cashless payments because of the safeguard offered by paying with a card.

Moreover, your drivers can start displaying the fact that they don’t handle cash, reducing the risk of robberies. Payment notifications and receipts can be sent automatically by email or text, which means one less thing for your drivers and dispatchers to manage.

Improved response times: Since payments will be handled much quicker, your office staff and drivers will spend less time taking payment information, which means that they can get the vehicle on the hook faster and handle more calls per day.

Reduction in card processing fees: Did you know that some businesses implementing a mobile solution for tow truck payment processing have seen a drop in fees of as much as 90%? This savings translates into a tremendous increase in the profitability of your towing business without raising prices. One of the leading providers of payment solutions for the towing industry is Xpress-pay. We help our operators streamline their business and be more profitable overnight.

Reduced GOAs: A primary headache in the towing business is GOAs. By offering your customer the option to pay by text or email before the truck is sent, they are much more likely to be there when your driver arrives. Of course if they’re not, then at least you already received payment. Even if you need to refund the payment later, it’ll be easier to justify keeping a portion of the funds as a service fee. This also mean that you wouldn’t have completely wasted your driver’s time and vehicle expenses getting to the site.

Just what are the real-world impacts on a typical towing business? Here is an actual case study from Bald Eagle Towing after switching to accepting mobile payments. In short, they found it improved their operational efficiency, reduced expenses, and improved their bottom-line.

How Does the Payment Process Work?

Let’s say your customer is stranded on the side of the road and has a working phone. Here’s what a typical call would look like when you begin offering a mobile payment option.

Step one: Customer visits your website and connects with dispatch to arrange a tow.

Step two: Your dispatcher sends a text message with a payment link with the negotiated amount. When paying, the customer can also add a gratuity (tip) for the driver who will be handling their job. Tow truck drivers love this feature as it allows them to earn some additional cash with each call. Xpress-pay can also add an additional “Site Fee” to every payment, used to cover your processing fees. The Site Fee is directed to the card service provider, simplifying your accounting.

Step three: When the payment is successful, both you and the customer will receive an email confirmation.

Step four: The truck is dispatched, and the job is completed faster than usual.

Customization: Your payment page can be customized with your business logo and name identifying you to your customers correctly. You can elect to accept cards, eChecks, or both. You can also choose to integrate these payments with systems like Beacon Software, Dented Development’s InTow Manager, QuickBooks Online, and more. This is highly recommended as it will drastically reduce your manual bookkeeping workload.

One Final Word

We understand you have your hands full running your towing business. As an owner, you might even be making service calls yourself. You certainly do not have the time for cumbersome systems that take forever to set up or use.

Not to worry. When you work with the Xpress-pay Team, there’s no need to set up an entire eCommerce website or code web pages. You don’t have to be a high-tech wiz. All in all, it only takes about ten minutes to apply. Our Support Group will help do the rest with you. Honestly, don’t you think you owe it to yourself, your business, employees, and customers to start accepting mobile payments? There’s no risk or cancellation fee so do it now – we’ll make it simple. As so many others have, you’ll be thrilled you did! Check out the video below to see how it works.