If there’s one thing I think we can all agree on, even in a world that seems so divided at times, is that we’re in the golden age of the smartphone. My guess is, you’re more likely to forget your wallet, hat, significant other, even your kids before you’d forget your cellphone when walking out the door, right?

We all know that sinking feeling after driving away from the house and landing at your destination only to realize you’ve left the rose gold iPhone sitting next to the kitchen sink. That strange void in your pocket used to hold the greatest tool created in the last half century to help us live our lives.

Now, your phone isn’t with you and all hope is lost. Not really, but it’s always a pain leaving your phone behind, isn’t it?

It makes sense, too. We live our entire lives on our smartphones. It touches every part of our daily lives…

Need to know how much you can spend on your debit card today? Just text “BAL” to your bank and they’ll send you the available balance in seconds.

Need to reserve a table at a busy restaurant for the family dinner tonight? Hop on their website and use a tool like OpenTable to book one online before they run out.

Want to buy a coffee at Starbucks? Fire up their app, let the barista scan your barcode to pay and earn points toward that next free Grande Iced White Mocha With Blonde Espresso & Whip (my wife’s personal favorite when the peppermint is out).

In the last decade our smartphones have become invaluable tools that connect us with the world, are small enough to fit in our pocket, and cost as much as my first car did back in the mid-90’s – a 1992 Pontiac Grand Am LE in Medium Gray. My friends nicknamed it “The DeLorean”. True story.

With the incredible spread of smartphones into nearly everyone’s hands and lives, is it possible to leverage this tool to grow or run your business? Absolutely, and we’re not just talking about having a “mobile-friendly” website customers can get information about your business on.

Smartphones are capable of so much today that there are almost an infinite number of ways they can help you run your business. One of the most effective tools cell phone have though, is also one of the simplest features they all offer, and have for decades now.

Which feature am I talking about? Texting!

Even before the heyday of smartphones, cell phones as early back as the late 1990’s were capable of sending and receiving text messages. Also known as SMS, or Short Messaging Service.

In fact, The first SMS message was sent on December 3, 1992, when Neil Papworth, a test engineer for Sema Group, sent “Merry Christmas” to the Orbitel 901 phone of colleague Richard Jarvis.

Since then, text messages haven’t changed much either. There have really only been 3 main updates to the service in the last 30+ years, including being able to:

• Send multiple SMS messages in one single text thread

• Add media content, such as emojis, GIF videos, and static JPG images

• Embed hyperlinks into messages that direct viewers to websites and other online tools

That last part is where we believe smartphones can have the greatest impact on running your business. By leveraging hyperlinks in SMS messages to customers, you can achieve so much in just a few short lines of text, including getting paid by text!

A few short years ago, we launched a seemingly simple, yet powerful new feature inside of Xpress-pay that we know you can benefit from. That’s probably a bold statement because we have literally thousands of features inside everyone’s account, but not all offer a global reach like this.

What is this handy feature called? Quite simply – Instant Invoices.

Instant Invoices allow you to quickly create an invoice, or bill on-the-fly from inside your Xpress-pay account by keying in the customer’s information, their bill amount, and a few other details as needed, then instantly text a copy of that invoice to them.

The text message the customer receives contains a hyperlink they can tap on and be directed straight into our secure payment portal. From there, your customer can view their bill information, make a payment, and get a receipt all within seconds.

Did you know the average text message is opened and read within 10-seconds of receiving it? This really makes Instant Invoices a game-changer for your business.

This is also why Instant Invoices have become the most popular page on our website, and clients of all kinds are discovering how this simple feature is helping them do so much more in less time than ever.

If you’d like to learn more about how Instant Invoices can enhance your operations and daily life, contact us now at (607) 753-6156; or sales@xpress-pay.com.

We look forward to speaking with you, and hearing all the clever ways this incredible tool will streamline how you get paid every day.

Until next time,

The Xpress-pay Team!

(607) 753-6156 | sales@xpress-pay.com

Making Digital Payments Possible and Practical

As part of the growing shopping and bill-payment trends, digital platforms are becoming increasingly important. Without them, debit and credit card transactions wouldn’t be possible. Dozens of digital payment platforms have become available over the years, but not all are created equally. 

For merchants who wish to give themselves and their customers a unique payment experience, Xpress-pay is rising to the top of the popularity polls. Our online payment solutions offer retailers, service providers, and other businesses substantial freedom in terms of payment options. Xpress-pay also offers a variety of affordable and secure payment solutions to allow merchants to quickly receive payments from a broader range of sources.

Delving into the World of Digital Payments

According to recent reports, more than 82% of transactions are now digital. That is expected to surge during the years to come. Despite the ever-growing prevalence of digital payments, most people don’t fully understand how the process works.

Business owners and shoppers alike simply know they can insert, swipe, tap, or enter their card information into a payment portal or point-of-sale terminal. From there, the transaction is either approved or declined. Approval is good; denial is bad. We’ll take a closer look at transaction declination later in this post. For now, though, let’s delve a bit deeper into the overall process of a successful digital transaction.

Consumers and Merchants

First off, you have the consumer, who is the person making a purchase or paying a bill. Obviously, you, as the merchant, are also part of the process as the person or company accepting payment for products or services. Your business and customers are only part of the process, though.

Payment Gateways and Platforms

Payment platforms and gateways are also integral to the process. They’re the devices or applications that pave the way for digital payments. They convey information between the cardholder, the payment solution, the merchant, and other entities involved. Payment processors further expedite the payment process. They serve as the intermediaries for payment gateways, merchants, and consumers.

Banks

Banks are vital participants as well. Issuing banks provide the actual funds which are routed to the merchant’s bank account. Before doing so, they check the consumer’s card and limit. They chose to accept or decline the transaction.

Card Networks

Beneath it all are the card networks, the companies that provide credit and debit cards. Two of the most well known are Visa and Mastercard though others also exist. Though cards are issued by a variety of financial institutions, virtually all of them contribute to the entire card network. In short, people’s debit and credit cards come from one of the major card brands regardless of which bank issues the card.

How Digital Payment Processing Works

Now that we’ve discussed all the components of a standard digital transaction, we can explore how the entire process works. Basically, the series of events starts with you in marketing products or services to the public. Consumers then visit your business in person or online.

Once their buying experience is complete, they use their credit or debit cards to make a purchase. They enter their card information into your payment gateway whether it be a POS terminal or an online or mobile application. From there, the transaction travels to a payment processor, gets routed through the appropriate card network, and is forwarded to the necessary issuing bank.

Next, the issuing bank authorizes the payment. Authorization is then returned through the card network and payment processor. The payment processor sends the authorization back to your payment gateway. At that point, the money for the transaction is scheduled to be transferred to the merchant’s (your) bank account.

This process sounds rather complicated, doesn’t it? Numerous factors have come together effortlessly to complete the transaction. Keep in mind, all of this occurs in just the amount of time it takes a consumer to initiate the payment, and for your payment gateway to approve or decline. The entire process appears to be instantaneous.

Why Are Some Transactions Declined?

As you’re probably aware, not all payments are successful. Consumers’ transactions are sometimes rejected. While insufficient funds is a common issue, it’s certainly not the only reason a transaction may be declined. Other problems can certainly enter the mix.

For one, a transaction may be flagged as potential fraud. Banks and credit card issuers often monitor cardholders’ activities and establish a baseline for common purchases. They keep track of where consumers most often shop and approximately how much they spend per transaction.

If an accountholder’s card is used at an unusual store or an abnormally large purchase is made, the issuing bank may stop the process and declines the transaction. The issuing bank then contacts the card holder for further investigation. If the cardholder confirms that the purchase is legitimate, he or she may then retry the transaction.

From another perspective, the problem could lie with the technology or intermediaries involved in the process. POS terminals and other payment gateways aren’t infallible. Breakdowns in communication between involved parties could cause a decline notice. There are numerous other reasons why a transaction could fail.

Recognizing the Importance of Reliable Digital Payment Tools

Although digital transactions are gaining momentum, some businesses and consumers remain apprehensive about technologically advanced payment options. This is especially true for those who may have had a bad experience in the past. Having reliable digital payment tools can generate numerous benefits for businesses as well as their customers.

Appealing to More Consumers

Businesses that have reliable digital payment solutions have been proven to attract more customers. After all, if you offer a broad range of payment options, more people are going to shop with you. In the event your system isn’t compatible with the form of payment consumers want to use, they’ll take their business elsewhere.

Boosting Profits

Having the right digital payment tools in place will also boost your profits. Part of this comes from being able to accommodate a broader clientele both in-person and online. Additionally, research has proven that customers spend more money when using digital payments. In fact, they spend an average of 80% more through digital means.

Creating a Better Customer Experience

Two of the reasons so many people choose to use digital payments are convenience and speed. If your payment method presents obstacles at every turn, people aren’t going to purchase from you.

On the other hand, a smooth, seamless payment process will have a beneficial effect. It will encourage shoppers to shop with confidence. It will also provide another reason to become repeat customers. Since people regular speak to others, it will also enhance your reputation. Using a dependable payment platform to improve the customer experience can work wonders for your business.

Reducing Expenses

Several digital payment solutions are available to businesses these days. Each one offers its own advantages, but many are accompanied by lofty fees. Charges can be generated with each phase of the digital payment process. If you’re not careful, those can easily consume your profits. With the right platform, you’ll be spared from excessive fees.

Enhanced Security

While cybercrime is a factor online, the payment industry and its network of certified providers has an impressive arsenal of countermeasures. Although hackers aren’t overly choosy when it comes to their victims, they tend to be attracted to easy targets. Having a secure platform deters would-be thieves. That gives you and your customers greater peace of mind and helps to prevent losses.

Those are some of the key reasons a reliable payment platform can help your business. It’s also important to mention that less dependable solutions can lead to significant downtime. That, alone, could drive away customers and cost your businesses a great deal of money.

Using Digital Payment Processing to Bolster Your Business

Businesses and consumers are going digital these days, and that trend is only going to grow during the coming years. Businesses that are truly prepared for the future have secure digital payment solutions in place to help them enjoy continued success. Numerous solutions are at your disposal, but not all of them are viable and many do not operate at the highest level of industry security certification (PCI DSS Level One). Xpress-pay is dedicated to providing affordable, convenient, secure, and reliable digital payment solutions that cater to the needs of today’s businesses and the expectations of modern consumers.

Benefits of Extending Credit

Offering financing generates numerous benefits for businesses. One of the most prominent is allowing consumers to purchase now instead of later or not at all. With flexible payment options and no money down, customers tend to feel more comfortable when making sizable purchases. At the same time, businesses realize improved sales and elevated income.

Advantages, even on the Downside

While businesses can certainly benefit from offering customers financing options, sometimes consumers go a bit over the edge. If payments can’t be made on time or at all, the issue remains between the consumer and the bank underwriting their card – the merchant remains insulated. By extending the credit to a customer, a merchant is accepting responsibility for tracking down delinquencies if the customer is late in their payment.

Why Do Customers Pay Late?

No one wants to see consumers land in financial trouble. If merchants can easily do something to help, they should do so. So, let’s take a look at why a customers might not pay bills on time. Some make a habit of paying their bills late whereas others do so occasionally and inadvertently. Some of the reasons may be surprising, but easily remedied.

Inadequate Payment Platforms

Many consumers end up paying late because of obstacles in the payment platforms their creditors are using. Some platforms are simply inconvenient, confusing, or lack options that meet the consumers’ needs. That alone can be enough to cause a consumer to abandon the process.  

Other payment platforms send people around in circles. They enter all the required information, click the “submit” button, and get an error message because of some minor detail they overlooked. Then, they must start all over again. Most of the consumers who encounter this issue would gladly make their payments on time if their creditors had a more user-friendly digital payment platform.

As a business owner, it’s important to see all of this from the consumer’s point of view. If you met resistance at every turn, might you delay paying certain bills? People are stressed enough without having to deal with a runaround from an online bill payment system.

Keep in mind, internal problems with some inadequate payment platforms are the reasons certain payments are late. Customers may enter their payment information before the due date or well within the allotted grace period, but the platform delays processing their payments.

That can make payments appear late even though the consumer had honorable intentions. It can also lead to late fees the customer shouldn’t have to pay. Excessive online “convenience” fees discourage consumers as well.

Those are all common reasons almost forty percent of consumers delay or avoid making payments. Why rush to pay on time knowing you’ll still face the consequences of paying it late or be forced to pay lofty fees for making the payment in the first place? All these issues can be avoided with a more user-friendly online payment platform.

Forgetfulness

Forgetfulness is also a leading reason for late payments. People have a lot on their minds these days. Stress has been found to cause memory disruptions, and reports show that people are more stressed now than ever before. Hectic lifestyles play a role here as well. According to a recent article from CNN, even the pandemic has led to surging forgetfulness.

This may not seem like a valid excuse from a creditor’s point of view. Still, it’s becoming more common. Using technology to send friendly reminders can be very helpful here. Texts, emails, non-threatening letters, and other solutions can go a long way toward keeping you at the forefront of customers’ minds, so they’re regularly reminded to pay. Finally, any reminder should always include a button to click or touch for immediate payment.

Financial Difficulties

Countless debtors say they simply don’t have the money to pay certain bills when creditors contact them about late payments. Most of them aren’t making excuses; they’re truly experiencing financial hardships. Job loss, unexpected expenses, and many other issues can leave consumers without enough funds to pay their bills on time.

More than forty-five percent of Americans are facing financial difficulties right now based on a recent report from Prudential. Many are selling, borrowing money, or finding other means to avoid falling further behind. Still, these options only go so far, and they’re not available to everyone. With an ever-growing number of families living from paycheck to paycheck, even a seemingly minor unexpected expense can result in financial duress.  

Lack of Consequences

Most of us are taught from an early age that negative behaviors bring about undesirable outcomes. That encourages us to do the right thing whenever possible. Of course, later in life, we often find the rule might not apply in all scenarios. This can lead some to take full advantage of the situation in which negative behaviors don’t generate equally negative ramifications.

Paying bills also has a set of rules and consequences. Late fees and the potential for losing credit privileges are a few of the reparations of failing to make timely payments. Companies that are lackadaisical in their regulation of late payments will likely get taken advantage of. As such, it’s vital that companies have concrete consequences in place for delinquencies, encouraging debtors to be responsible.

Encouraging Debtors to Pay On Time

Almost half of American consumers will pay bills late at some point. While some will simply forget, others will do so because they dread dealing with problematic payment platforms or because they can’t navigate certain online payments systems at all. They simply give up and mail a check, money order, or completely avoid paying at all.

Implementing a user-friendly payment platform is vital in resolving the problem for many businesses. Those that don’t impose late fees or penalties for late or non-payment should reconsider their methods. In doing so, late payers will hopefully become more responsible and make more of an effort to remember. Financial struggles are inevitable, so having a certain amount of empathy is advised. Still, a line must be drawn to avoid being taken advantage of.

Who Writes Checks Anymore?

Changing payment methods are making checks and similar forms of payment a thing of the past. It’s still possible to write checks, but many places don’t accept them anymore. Instead, debit and credit cards provide far more flexibility for shoppers, and even newer payment methods don’t require a physical card anymore. Instead, they rely on a smartphone. Digital payment options allow for contactless payments, which rose in popularity during the pandemic. Now, pay-by-text means customers have an even easier way to pay for products and services. Pay-by-text provides even more flexibility for customers who don’t want to carry a wallet or want the ability to pay anywhere or at anytime. 

Pay-by-Text, What is It?

Pay-by-text is a form of invoicing and payment processing that involves SMS text messages instead of a terminal to process a credit or debit card. The business sends a text message with the invoice to the customer, and then the customer can click on a link to visit a mobile-friendly payment form and pay for the product or services. Customers can use pay-by-text for online and offline shopping, almost any business can benefit from it, and it is an excellent way to make it simple for customers to purchase products or services. 

How Text Invoicing and Payments Works

Text invoicing and payments are simple, but there are a few steps both the business and customer will go through. The exact method and how it works can change depending on the online payment service and how the company set-up is completed. In general, though, the business and customer will go through the following steps for a pay-by-text payment. 

Initiating the Sale

Either the customer or the business can initiate the sale. The company begins the sale by sending a text to the customer’s phone. If the customer initiates the sale, they will send a text with a unique code to the business. This step connects the company with the customer via text to begin the rest of the process.

Link Sent to Secure Payment Platform

Once the business and customer have connected through texts, the next step is for the invoice. The text message invoicing involves sending a secure link to the customer’s phone. Businesses can set up what the invoice includes, as well as customize pricing and other details to meet their unique needs. 

Customer Completes Form and Pays

When the customer receives the invoice, they can quickly and pay the balance due. In many instances, customers can take advantage of services such as auto fill, so manual completion is not necessary. The form will likely request payment information such as the card number and expiration date, as well as customer’s name and address. It is similar to most other forms for online payments. 

Customers can choose the type of payment preferred. This flexibility means customers can use a credit card that’s at home or pick a form of digital payment to use to complete the sale. Customers often appreciate as many options as possible, making it easier for the customer to find one that meets their needs. 

Business Receives the Payment

Once the customer has paid their invoice, the business will receive the payment. A receipt reflecting the customer’s name and address. These details are vital if the business will be mailing a product or visiting the customer to deliver a service, but they may not be needed to download digital products. 

Customer Receives a Receipt

After the sale, the customer should also receive a receipt. The receipt typically includes any information from the invoice such as return policies, and the total amount paid for the product or service. Customers can then email the receipt to themselves for safe keeping or print it. 

Top Benefits of Text Invoices and Payments

Pay-by-text is easy to set up and use therefore, it offers many benefits for today’s businesses. Some important benefits of using this type of payment processing include:

Customers Likely Have Smartphone

The overwhelming majority of customers will have a smartphone, making it possible to receive invoices through text and view them instantly. As of 2020, 85% of adults own a smartphone. Approximately, 96% of younger adults, aged 18 to 29, do as well. In fact, a very high percentage of people will until they reach the age of 61. The chances of a customer not being able to accept invoices through text or pay by text is very low. 

More Customers Interested in This Option

Research has shown that a large number of consumers are interested in being able to pay by text messaging. In particular, young adults favor this method of payment as it allows them to pay for any product/service anytime and anywhere. For businesses, this provides an excellent opportunity to expand potential payment methods and make it easier for customers to pay. 

Easy Way to Send Invoices

Pay-by-text is a straightforward way to send invoices to customers with pre-made forms for invoicing. Businesses can use these forms to send invoices faster allowing customers to receive and read invoices more easily. The ease of sending invoices makes this a fast way to accept payments from customers, too. 

No Learning Curve for Customers

There’s no need to worry about a learning curve for customers. All they’ll need to do is click on the link to view and pay the invoice. With many payment methods available, they can use one they already know. Since most adults have shopped online before, they are already familiar with filling out online payment forms. 

Completely Contactless

The pandemic brought cleanliness to the forefront of everyone’s mind. Most discontinued using cash opting to use just their debit or credit cards. Today, while this is still true, many consumers prefer contactless payments. Pay-by-text is completely contactless, allowing the customer to make purchases with peace and ease.

Many Payment Types Accepted

Customers have their preferred payment methods. Whether that’s using a credit card, an online service, a digital wallet, or a bank transfer, texting invoices and payments allows the customers to pay using their preferred method since a wider variety of payment methods are accepted. Payment options are available depending on the processor, though most will allow for a wide range of payment types to be accepted. 

No POS Terminal Needed

POS terminals have been around forever, however, there are now mobile options for those who may not have a storefront type set up. Industry changes have made. POS systems are irrelevant as businesses can send invoices by text, allowing customers to pay them instantly. There’s no need for specialized equipment, so sales can be completed anywhere and at any time. 

Easily Provide Payment Reminders

Once the company has sent the invoice, they can simply text payment reminders as needed. Businesses can automate notifications and reminders depending on the payment processor, reminding the customer of an overdue payment. Since customers are more likely to read a text than an email, payments will likely increase thus bringing Accounts Receivable down. 

Is Pay-by-Text Right for Your Business?

Choosing to pay-by-text is a personal decision for each business. It is crucial to review the benefits and potential costs associated with working with another payment processor. Many companies, however, can benefit from offering payments and invoicing through texts. When contactless payments are preferred, when businesses need to be able to send invoices for services quickly, or when having a POS terminal isn’t convenient, pay-by-text might be the perfect option. Business owners can check out the options and personalization available from an online payment service to see if this will benefit their company. 

If you’re looking for alternate payment options pay-by-text is an excellent choice. Though many options are available, pay-by-text offers benefits for companies and customers that aren’t available with other payment methods. Customers have a lot more flexibility, don’t need a check, cash, or cards, and can make the payment any time it’s more convenient for them. Your business can take advantage of this by enrolling in text-based payments and invoicing with an online payment service provider today. 

Today, business owners are exploring a variety of options to speed up the payment process. When payments for goods or services are made promptly, the business is better able to respond to new business needs, pay their suppliers in a timely fashion, and even provide bonuses for employees. Of course, every business has fixed costs that must be paid, and late payments increase the odds of missing payments or being charged late fees. Those charges cut into profits and make it difficult for business owners to take advantage of new opportunities. 

In many instances, business owners are exploring real-time payments as an option to speed up their payment cycles. These systems avoid much of the lag or “float” that’s been commonly experienced for years. Traditional payments are submitted, but the processing times make it impossible for businesses to access the money quickly. In some cases, the delays go on for days. That’s no longer acceptable, and real-time or ePayments are currently the best option if business owners are to see client payments in their accounts quickly.

What Are ePayments and Why Are They Important?

When people think of ePayments, they tend to lump all types of digital payments together. For example, they view credit card payments as real-time payments, but that’s far from the case. In the U.S., it still takes roughly 48 hours for a payment using a credit card to clear and the funds to become available. That same time frame is commonly experienced by businesses accepting other, older forms of payments. Today’s business owners want to receive payments faster.

If ePayment options are utilized, business owners see reduced time lags, which provides a variety of advantages for users. Payment experts predict that nearly 80 percent of business owners expect to see wide adoption of ePayment options in the near future, as those options become more readily available and inexpensive to use.

In order to expand the use of ePayments, business owners will be faced with a few issues. Arguably the most critical one is obtaining the equipment required to use the systems. However, while larger organizations may require significant IT investments, smaller businesses may be able to use tailored services from providers specializing in accelerating the payment process. 

Once a system is in place, it’s simple to invoice customers from a variety of devices and collect payments quickly. It’s also easier to track down customers who need to make payments and allows those clients to use a variety of payment options, including various cards and eChecks. Some service providers also include ways to make bookkeeping easier by integrating third-party systems and QuickBooks. The best way to determine how to take advantage of various options is to contact a payment system provider for more information. 

What Do Experts Say About the Future of ePayments?

The way people make payments is rapidly evolving. The use of cash and checks has declined significantly in recent years as businesses and individuals realize digital payments are far more convenient for everyone. In some places, the use of cash has all but disappeared as digital payments increased.

What spurred the rapid switch to digital payment options? For years, it’s been obvious cash, checks, and traditional charge cards are on the way out. Newer digital payment options are faster, often more secure, and easier for everyone involved to use. While those are important advantages, the past few years and Covid-19 pushed companies and individuals to use ePayment options.

Shopping from home exploded during the pandemic as shoppers moved from visiting retail stores to online options. At the same time, restaurants and service businesses took extra precautions to keep employees and customers safe. To accomplish that goal. Touchless payment options became the norm rather than the exception, which means an increasing number of people quickly adapted to using ePayment options rather than cash or checks. 

Because companies everywhere are accepting ePayments, they’ve become routine, and their use is expected to increase substantially in the coming months and years. Industry experts predict that ePayment use will result in a dramatic decline in the use of traditional credit and debit cards. Globally, nearly 80 percent of banks predict real-time payment options will become far more common in the very near future. 

That doesn’t mean cash, checks, and traditional credit cards will disappear in the immediate future. There are simply too many people who are not yet financially able to take advantage of ePayment options. For the time being, the various options will exist side by side, but expect to see more businesses and their clients using real-time payment options as time goes by. 

What Are the Advantages of ePayments for Businesses?

Obviously, the biggest single advantage will be enjoying faster access to cash, as mentioned earlier. However, businesses of all sizes will be able to take advantage of lower overall costs as the service matures. Anytime a new system saves money, businesses should take note, as a competitive market makes it absolutely crucial for business owners to take advantage of any strategy that enhances their bottom line. 

Using an ePayment system makes it simpler for customers to pay their bills, as there is generally a “Pay Now” button they can use. If you’re concerned about offending a customer by sending late notices, these systems reduce the odds of that happening.

Remember that even though using ePayment systems involve some fees, those fees are likely to be lower, in the long run, than the charges and associated expenses routinely experienced when credit and debit cards are used. In addition, being able to pay suppliers and other invoices faster may make it possible to negotiate discounts. 

Industry experts suggest that E-invoicing is helpful even when dealing with slow-paying customers, as it’s easy to track payments and send reminders quickly when a payment isn’t forthcoming. At the same time, manual processing errors are virtually eliminated when automated invoicing is used.

Another advantage to consider is the reduced chance of fraud, as the systems are expected to be more secure than some cards and will certainly have a lower risk than accepting checks. Digital payment systems make it easier to spot fraud, which means ongoing schemes can be caught immediately to avoid extensive losses.

It’s also important to consider ePayment options when dealing with overseas companies. In the past, payment delays from overseas clients could be lengthy, which made it difficult for some companies to pay their own invoices and recurring bills. Real-time payments reduce delays and, again, reduce the odds of fraud during processing.

Obviously, the biggest single advantage will be enjoying faster access to cash, as mentioned earlier. However, businesses of all sizes will be able to take advantage of lower overall costs as the service matures. Anytime a new system saves money, businesses should take note, as a competitive market makes it absolutely crucial for business owners to take advantage of any strategy that enhances their bottom line. 

Using an ePayment system makes it simpler for customers to pay their bills, as there is generally a “Pay Now” button they can use. If you’re concerned about offending a customer by sending late notices, these systems reduce the odds of that happening.

Remember that even though using ePayment systems involve some fees, those fees are likely to be lower, in the long run, than the charges and associated expenses routinely experienced when credit and debit cards are used. In addition, being able to pay suppliers and other invoices faster may make it possible to negotiate discounts. 

Industry experts suggest that E-invoicing is helpful even when dealing with slow-paying customers, as it’s easy to track payments and send reminders quickly when a payment isn’t forthcoming. At the same time, manual processing errors are virtually eliminated when automated invoicing is used.

Another advantage to consider is the reduced chance of fraud, as the systems are expected to be more secure than some cards and will certainly have a lower risk than accepting checks. Digital payment systems make it easier to spot fraud, which means ongoing schemes can be caught early enough to avoid extensive losses.

It’s also important to consider ePayment options when dealing with overseas companies. In the past, payment delays from overseas clients could be lengthy, which made it difficult for some companies to pay their own invoices and recurring bills. Real-time payments reduce delays and, again, reduce the odds of fraud during processing.

Don’t Forget About the Downside

For the time being, processing ePayments may actually be slightly more expensive for everyone as banks will experience higher processing costs when same-day payment options are used. Those banks will also lose the float advantage they’ve enjoyed for years. Judging from past experience, it’s likely the banks will try to pass on their additional costs to users, but those fees may be reduced as competition increases and initial investments are recovered. It’s hard to tell, at this point, how all the fees will wash out in the future, but business owners are also likely to pass on any temporarily increased fees to their customers.

It’s also going to take time for banks to bring their systems online. That means when more than one bank is involved in processing a payment, delays can still be expected. Of course, even smaller banks will soon feel the pressure to update their systems as more users adopt ePayments. 

Moving to the Future

If you’re concerned about any potential downside to using real-time ePayment systems, it’s a good idea to work with a service provider who has the experience necessary to avoid any pitfalls when adopting a new payment option. 

Companies exploring new and innovative ways to get paid faster are encouraged to contact an expert for advice before making any major decisions. Since ePayment options are still relatively new, expect to see systems evolve as the technology involved improves.

Remember that the primary advantages of ePayment systems include creating and delivering customer invoices quickly and accurately, allowing customers to review and pay those invoices from any smart device, and faster fund transfers to your account. Those advantages alone are well worth the move to an ePayment system.

It’s also important to remember that these systems are designed to meet a variety of company invoicing and payment processing requirements. Top service providers provide company owners private coaching to ensure everyone involved understands the capabilities of their new ePayment system. For an introduction to a customizable payment processing experience, contact a service provider for more information now.

There is no denying that business owners and consumers alike are happy to have the worst of the pandemic restrictions behind them. However, there was at least one silver lining for businesses. The credit card networks Visa and MasterCard were planning to increase their interchange fees in April 2020, but since it was clear that businesses were already struggling, the two networks opted to delay the change until April 2022. The time eventually came for merchants to find ways to make up for higher processing fees. Both networks went through with their delayed increases in interchange fees in April 2022, so business owners need to find ways to generate more revenue with every transaction to offset the additional costs.

What Are Interchange Fees?

Since not all entrepreneurs and newcomers to business ownership are well-versed in credit card processing practices, let’s start at the beginning with a brief introduction to interchange fees and how they work. In simple terms, interchange fees are paid to banks by merchants to cover the costs associated with specific categories of credit and debit card transactions.
Each category has a different interchange rate associated with it, but what they all have in common is that these rates are non-negotiable. The interchange rates associated with some categories of transactions are less than 1%, while others can exceed 3%. Both Visa and MasterCard publish interchange fee tables to clarify the rates for each category, but things can still get complicated.

How Do Interchange Fees Work?

All credit or debit cards are backed by an issuing bank. When a merchant accepts a card payment, the bank routes the funds to the merchant and the bill to the consumer. Simply stated, the card networks (Visa, MasterCard, etc.), the bank, and other participants in the process charge “Interchange Fees” and possibly other related fees for their services. The merchant receives a monthly bill for the fees accrued during the prior month.

The sum of all merchant service fees tend to be near 3% of gross sales. It’s important to note though, that if you operate on a 10% margin, 3% in fees reduces your net profit by 30%! Example: For $100,000 in sales by card, you’ll pay about 3% in fees ($3,000) and your 10% margin will yield $10,000 in net profit. Eliminating the $3,000 in fees increases your net profit to $13,000, a remarkable 30% increase!

Interchange fees will significantly affect your bottom line. This is why solutions such as the Xpress-pay Site Fee Program have become wildly popular.

Factors That Determine Interchange Rates

There are dozens of interchange rates, and they vary based on the category of the transaction being performed as well as other factors. In general terms, interchange fees are determined by the level of risk assumed by the acquiring bank. If a transaction carries a higher risk of fraud, the interchange rate associated with it will be higher. Factors that influence interchange rates for Visa and MasterCard include:

Type of Card

Debit cards have much lower interchange fees than credit cards, which makes sense. Debit card transactions are only approved if the buyer has enough money in the associated account. Both Visa and MasterCard debit cards have much lower rates than the two financial service behemoths’ credit cards.

Credit Card Rewards

Premium cards that offer rewards almost invariably have the highest interchange fees. The reasoning behind the difference in rates associated with standard vs. rewards cards is that the interchange fees can be used in part to cover the cost of offering rewards. The same applies to corporate credit cards.

Transaction Location

In-person transactions generally have lower interchange fees than online payments. Again, the risk of fraud is lower when people pay in person rather than using credit cards to make online payments because it’s more difficult to use stolen cards.

Type of Business

Every merchant who processes credit card payments receives a merchant category code based on his or her industry. Each comes with a different interchange rate. The rates for each category code also varies by the acquiring bank.

What Changed in 2022?

All of the basics remain the same. Fees however, have increased for specific merchants and categories of transactions. Both the Visa and MasterCard fee increases apply primarily to online purchases made with consumer credit cards. MasterCard however, plans to increase its fees on over a dozen different in-store purchase categories.

Some businesses will be harder hit by the fee increases than others. Small to mid-sized supermarkets, for example, will wind up paying higher interchange fees on MasterCard-network rewards cards, as will general retailers with brick-and-mortar establishments. MasterCard plans to generate an additional $330 in interchange fees in the coming year compared to the year preceding the fee hike.

Though much of the focus in the financial world has been on industries and types of businesses that will suffer as a result of increased interchange fees, there is a silver lining for some retailers. MasterCard plans on lowering the fees charged to merchants with transactions below $5. Daycare facilities, casual restaurants, hotels, and some of the other businesses that were hardest hit during the pandemic will also see lower costs.

Visa is following suit to lower fees for small merchants that process $250,000 or less in consumer credit card transactions each year. The credit card processor also plans to exempt some categories, which will include grocery stores, convenience stores, gas stations, and restaurants, from the increase in interchange fees. Overall, the planned changes should lower fees by around 10% for about 90% of businesses.

How Can Others Avoid the Fee Hike?

While it’s true that not every business will wind up paying more as a result of the upcoming fee increases, many will. Though the interchange fees charged by credit card processors are non-negotiable, there are some ways to reduce or even eliminate them. The following methods are useful in keeping interchange and other credit card processing fees low.

Switch to a Solution that Uses a Site Fee Model

If you own a business that accepts Visa and MasterCard payments, it’s best not to rely on exemptions cited by the company’s spokespeople. There is an easier and more reliable way to make sure the business’s bottom line won’t suffer as a result of future rate hikes. Xpress-pay has achieved an impressive $0 impact, so its business clients will not see any increase in their interchange fees this year.

The reason Xpress-pay can keep its fees so low while offering free accounts to both new and existing clients is that they utilize a site fee model. Xpress-pay charges this nominal fee for the use of its services, with most clients passing this fee on to customers to offset the cost of processing transactions. Unlike major credit card companies’ interchange fees, the site fee will not change in April. It will remain low for everyone and can still be passed on to customers.

Use Address Verification Systems

Brick-and-mortar retailers don’t always have the luxury of simply switching to a new payment processor and refusing Visa or MasterCard payments, but they can still keep fees low. Implementing an address verification system is a good way to prevent fraud, and both Visa and MasterCard will lower exchange rates for businesses that use these tools.

Don’t Wait to Settle

Settling batches every day can help to keep interchange rates low. Waiting to settle will have the opposite effect. You’ll be downgraded and can wind up paying up to 0.50% more in interchange rates. The reasoning is simple: when retailers wait for days to settle, their customers are more likely to get confused and contest charges on their statements.

Avoid Manual Entries

The manually keyed-in entry of credit card information comes with the highest possible processing rate. Again, it’s an issue of fraud prevention. It’s harder to prevent fraud when card numbers are keyed in by employees instead of being swiped. If a customer’s card isn’t working, you should ask for another payment method instead of keying in the number.

Surviving the Upcoming Fee Increase

Now that merchants have an idea of how online and in-person interchange fees work, it’s time to decide how to move forward. Most brick-and-mortar retailers won’t be able to refuse MasterCard and Visa payments entirely, but they can keep associated fees low by following the advice offered above. Online merchants can switch to Xpress-pay to maximize their savings without worry of paying ever-increasing interchange fees or having to refuse customers who want to pay with credit cards.

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 own a small business and are still dealing in cash, it’s past time to consider options for processing digital payments. Get started by reading on to find out what business owners need to know about digital payment fees and online payment gateways.

Types of Digital Payment Fees

The types of fees you will face when you start accepting online payments varies based on what Digital Payment partner you choose. Though each has a different cost structure, there are a few standard charges that come up regardless of what platform business owners choose. They include:

Transaction Fees

Many digital payment gateways charge transaction fees to businesses that use their apps. Some charge flat fees, while others take a percentage of each purchase or use a combination of both strategies to maximize their own profits at the expense of their customers.

Monthly Fees

Some payment gateways charge their customers monthly subscription fees instead of transaction fees. The monthly charge usually varies based on how many payments the company needs to have processed or how many bank accounts are set up to accept payments. Usually, payment processors charge either monthly subscription fees or transaction fees, not both.

Setup Fees

Setup fees are costs associated with creating a payment gateway account. You’ll only need to pay them once. They vary by the service provider so ask about them before signing up.

Early Termination Fees

If the payment processor requires business owners to sign a contract committing the company to use the service for a set period, chances are, there will be early termination fees to pay should you decide to take your business elsewhere. Payment processors that let customers use pay-as-you-go style plans shouldn’t charge early termination fees. When in doubt, check the terms of use or the contract for clauses that indicate that this issue might come up later.

A Better Alternative

Although it’s quite rare, some payment processors offer select customers no-fee plans. The zero-cost processing plan from Xpress-pay, for example, eliminates both monthly subscription fees and transaction fees, giving small business owners the freedom to accept digital payments without having to worry about losing a ton of revenue. 

Not all business owners will be eligible to sign up for this zero-cost plan, but you can find out if you qualify for free payment processing online. Just fill out an application, tell the company a little bit about how your business accepts payments and what kinds of profit margins you’re working with, and get on the road to free or low-cost payment processing ASAP.

Factors to Consider When Choosing a Payment Processor

In addition to the fees discussed above, there are three main factors you should consider before choosing a payment processor. They vary by the service provider, so making a chart to compare all four can help you find one that meets your business’s unique needs without breaking its budget.

1. Card Types

Before signing up for a payment gateway, find out what types of debit cards and credit cards they accept and whether your customers will have to link to their bank accounts instead of entering their card information. Some payment processors are more restrictive than others, so choose one that will accept all common forms of payment without requiring users to provide sensitive financial data like bank account and routing numbers. Using a payment gateway that can process all kinds of digital payments will allow you to expand your customer base online and in person.

2. On-Form Payments

Some online businesses use pre-built forms to collect funds from customers or clients. Some payment processors will collect users’ payments on the form while others will require them to perform a second step and direct them to another page for purchase completion. Simplifying the checkout process is one of the keys to increasing customer conversion rates and driving sales, so it’s best to work with a payment processor that allows on-form payments.

3. Recurring Billing

Not all companies need recurring billing. Only if you run a subscription-based company or a non-profit with repeat donors. If that sounds like you, make a point of asking whether the payment processor supports repeat billing and how the process works before signing up for services.

Business Owners Shouldn’t Be Afraid to Accept Digital Payments

While it’s true that some payment processors charge exorbitant fees, sometimes cutting into a company’s profit margins by as much as 30%, that doesn’t mean cash-only is the way to go. In the post-pandemic world, cash-only businesses will have a hard time staying above water, let alone growing and thriving. The reality is, digital payments are the future, and companies that refuse to accept this new standard will soon be left behind.

Not convinced that it’s worth making the necessary changes or paying the fees required to accommodate today’s more digitally literate consumers? There are many benefits to consider. Accepting digital payments:

• Saves time

• Is more efficient than accepting only cash
• Reduces security risks associated with handling cash
• Generates more revenue
• Is easier to administer
• Offers a certainty of payment
• Reduces participating companies’ carbon footprints
• Allows companies to expand into new consumer demographics
• Creates a competitive advantage

Many consumers who used to be hesitant about embracing digital payments have done so recently as a means of protecting themselves from unnecessary health and hygiene risks. Even if they preferred cash before the pandemic, they’ve gotten used to the convenience, speed, and security of ordering goods online and using digital payment methods in stores.

How to Tell Digital Payment Processing Is Secure

There are a ton of different payment processing solutions out there, but not all service providers take data security as seriously as they should. Since these companies are handling sensitive financial information, they should have measures in place to safeguard that data both in transit and at rest. Here are a few things to look for that will tell a merchant that a payment processor is taking its responsibilities to protect financial data:

SSL Protocol

The SSL protocol encrypts information to protect card details and other sensitive data. You can tell if a website uses the SSL protocol by checking the URL. If the web address starts with HTTPS instead of HTTP and there’s a padlock icon in the corner, the payment provider has an SSL certificate.

PCI Compliance

PCI DSS regulations provide guidance to merchants that tell them how to secure sensitive data during payment processing. The thing is, merchants shouldn’t have to worry about PCI DSS compliance. If they choose a reputable payment processor, they can leave compliance issues up to the company.

Tokenization

Tokenization is a method for protecting data while it is in transit. It involves replacing card numbers with randomly generated strings of characters. This token is used as a substitute for card data on all of the customer’s transactions to minimize the risk of payment fraud and data breaches.

3D Secure Authentication

Three Domain Secure (3D Secure) is a messaging protocol whose name is derived from the fact that it involves three domains: the customer’s bank, the payment processing technology, and the issuing bank. It’s considered an added level of security for online transactions in which a physical card is not required and limits merchants’ liability.

Frequently Asked Questions About Digital Payment Processing Fees

Still have questions? Check out the answers to your peers’ most frequently asked questions about digital payment processing below.

How Much Does Digital Payment Processing Cost?

The cost of digital payment processing varies significantly depending on which payment gateway you use. Some can cause merchants to lose up to 30% off the top of their profit margins, while others are completely cost-free. Do your research to make sure you’ve chosen the one that offers the best value for your money.

When Will the Funds Be Transferred?

Several factors influence how fast merchants can expect to see digitally processed payments hit their bank accounts, but in most cases, you can expect to get access to the money in a matter of days. The timeline for transferring funds varies depending on which payment processing service provider you use, the frequency with which you send authorized transactions for settlement, and what bank you use for your merchant account.

What Happens if a Company Terminates Its Contract Early?

You should check the contract for an early termination clause before signing up for a particular service. Some payment processors charge fees for early termination, while others do not.

Embrace the Future

No matter how merchants feel about digital payments, there’s no denying that they represent the future of consumer transactions. If you haven’t yet set up an account with a digital payment service provider, now is the time to make the change. Get in touch with Xpress-pay for more information today.

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/

A few use cases that may benefit from instant payments include:

• Person-to-person transactions between family and friends
•  Instant deposit to secure a commitment (apartment, appointment, limo, etc.)
• Emergency rent and bill payments
• Business-to-individual payments like wages for temporary workers or insurance claim funding
• Payments for just-in-time suppliers

Safe, ubiquitous, and fast payment systems bring long-term benefits by providing a safe payment framework, promoting global interoperability and competitiveness, and improving system efficiency. In this guide, readers will learn about the benefits of faster payments such as those done through Xpress-pay.

Availability and Speed

As businesses and consumers receive and send payments more quickly, they’ll find cash flow management, investing, spending, and saving easier. Fast verification of funds reduces the chance of unintentional overdrafts and minimizes the need for expensive short-term financing. 

If a faster payment solution can process payments at any time of the day, users will have the ability to monitor accounts and complete transactions anytime. Additionally, if these solutions are used instead of checks, underbanked consumers and small business owners may be eligible to receive funds sooner. With time, business processes and models may change significantly based on the faster availability of funds.

Efficient Payment Systems

When fast, always-on digital payment solutions reduce operating costs without losing the infrastructure needed for paper transactions, it benefits the entire society. Studies from Singapore, the UK, and other countries show that the adoption of fast payments hasn’t led to a significant reduction in card-based transactions, but it has reduced the use of cash, checks, and other, less efficient methods.

Several countries have seen an increase in digital payment volumes and a downturn in bank visits following the implementation of fast payment systems. If the US follows suit, digital payments will bring long-term cost savings and other benefits.

Overcoming Limitations

Within the world’s banking systems, payments are executed efficiently—but that simplicity does not extend to the processes surrounding the payment. Integrated, comprehensive information has always been a challenge, simply because communication only moves in one direction (from the payer to the payee).

To communicate bidirectionally, parties must go outside the payment system, and delays often make communication issues worse. Insufficient information on the availability and whereabouts of funds may inhibit workflow, especially when these matters are urgent. With these challenges, a business’ cash positioning, liquidity, risk management, and financial forecasting are affected. Many companies have created workarounds that bring fragmented processes together. With real-time payments, invoices, purchase orders, check scanning and rekeying, systems mapping, and automation are integrated—and a major pain point is addressed. 

Security, Safety, and Risk Management

Fast payment systems mitigate many existing risks by reducing the delay between payment submission and settlement. Quick confirmation of funds availability benefits financial institutions and their customers.

While digital payment solutions bring new operational risks because of their stricter processing rules, there are numerous potential benefits if these solutions meet the highest standards of security, safety, and risk management. 

When building a new system or integrating these capabilities into existing systems, users have opportunities to strengthen safety standards even though they’re not directly related to payment speed. And, if a fast payment solution uses advanced technologies and security features, it will likely increase the public’s confidence in the system itself.

Worldwide Interoperability and Competition

Another benefit of fast payments is an increase in worldwide competition and the long-term possibility of easier, faster transactions. For companies with offices in several countries, banks that make cross-border payments, or those who send money abroad, fast payment solutions with interoperable standards will facilitate faster, more open, and more affordable transactions.

How Fast Payments Benefit End Users and Service Providers

As with other technological shifts, payment providers face benefits and costs when they upgrade to a new and fast infrastructure. Buy-in by providers and widespread adoption by users depends on the benefits these groups will gain. Everyone involved in sending and receiving digital payments will encounter unique pros and cons when moving to a fast payment system.

Consumers may benefit from use cases that aren’t well served by existing options—for instance, instant bill payments and user-to-user payment methods that don’t require both parties to create an account before sending or receiving a payment. Fast payment solutions may be adopted more widely if they can reach those for whom conventional options don’t work.

Underbanked and unbanked consumers can benefit from safer, faster payment products that include faster funds access, timely payment notifications, and other features that make cash flow management easier.

Business users around the world are looking for ways to receive payments sooner. Not only will these systems help payments settle and clear quicker, but they will also lead to the creation of services and products that allow for greater differentiation among competing companies. Small companies that don’t accept digital payments may benefit by moving from written checks to real-time payments.

Government agencies may face significant expense in upgrading back-end processes and systems to send and receive real-time payments, but they will also have an easier time with the processing of large payment volumes with greater transparency and more timely notifications. State and federal disaster aid payments would benefit from instant processing.

Financial institutions of all sizes will have to make substantial investments when upgrading their systems to post, clear, process, and settle transactions faster, especially if the system’s rules require 24/7 availability. Although there are risks associated with the early adoption of digital payment solutions, there are also opportunities in providing these services. The long-term benefits of digital payments include stronger customer relationships and the ability to offer innovative products that competitors can’t access.

Users include a range of companies involved in payment processing—from large financial institutions to small tech firms. These providers can speed up their product development cycles, enhancing existing offerings and creating new ones. 

Providers often face substantial costs in the development and upgrading of payment solutions, as many are forced to divert resources from other areas. However, switching to an instant payment environment comes with numerous payoffs—including the ability to develop solutions and products for underserved and unserved markets.

Instant Payments Bring a Better Customer Experience

While consumers are searching for fast, easy payment options, instant payments offer benefits other than the ability to move money immediately. Real-time payments give consumers a chance to secure commitments immediately, lighten their wallets, make the switch to mobile, and readily monitor their finances. Almost 80% of merchants agree that real-time payments offer a better, more seamless customer experience.

Real-time payment infrastructure significantly improves the experience of disbursements and refunds. It was formerly a troublesome area for merchants and consumers alike, with refunds taking several days to process, clear, and be credited to a customer’s original form of payment. It’s not surprising that retail and telecommunications businesses both areas where refunds are costly and time-sensitive—are adopting real-time payments on a larger scale.

A Major Cost-Cutting Opportunity

The ability to send and receive payments in real time has benefits in several areas, one of which is an improved reverse logistics process. Real-time payments are more cost-efficient allowing merchants to save money and time. Additionally, sellers can cut card acceptance costs by reducing risk of chargebacks and fraud. Sellers can cut card acceptance costs by removing the middleman, and because chargebacks and fraud are less likely, they can reduce risks as well.

Why Adopt Real-Time Payments Now?

The pandemic and its economic effects have shown us the benefits of real-time payments. With these systems, governments and companies can work more closely with institutions, accelerating the disbursement of aid funds. In the United States, Xpress-pay is setting the standard for simplicity and creating higher expectations among customers.

While payment volumes were affected by global lockdowns, e-commerce helped the world’s economies to recover. Research shows that grocery shoppers have shifted toward online buying, and the trend will likely lead to closer collaboration between the billing and merchant sectors.

Regulators and governments around the world are still working on mandates and initiatives that will spur development in the real-time payments space. As evolving financial regulations and standards are adopted around the world, connected institutions will be able to access more robust payments data while enjoying increased security and additional opportunities to create value-adding services.

What May Lie Ahead

For the next few years, real-time payments will run alongside existing systems as financial technology companies find new ways to profit. While it’s unlikely that instant payments will replace models that serve specific functions, such as payroll payments via direct deposit, businesses may opt to use real-time payment technology to pay for the delivery of goods and services. 

Along with debit and credit cards, wire transfers, digital wallets, prepaid cards, and person-to-person apps, real-time payment tech will keep evolving—and it’s up to consumers and business users to generate the data these companies need to refine their offerings.

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/

Looking Back to the Beginning

Most people believe digital payments are a fairly recent development. In reality, electronic funds transfers date back more than 150 years thanks to Western Union. They weren’t widely accepted at first. Then, in 1994, digital payments started becoming a bit more common due to the rise of the internet, online shopping, and virtual bill payments.

Today, virtually everyone uses digital payment options most of the time. Only a handful of stores and vendors across the planet still hold fast to cash and have yet to adopt, at the very least, point-of-sale terminals. There’s no denying that the digital payment revolution is upon us, and it’s here to stay.

Ways Digital Payments Have Changed the World

Digital payments have definitely changed the world. One of the most obvious ways is by reducing or even eliminating the need for people to keep cash on hand. This revolution has also decreased the amounts of cash businesses need to keep in their tills. It’s a simple matter of convenience. That barely scratches the surface.

Security and Peace of Mind

There are numerous benefits of digital payments to businesses, but safety and security are among the most noteworthy. Reports indicate a notable increase in business robberies during the 1980s and early 1990s. Since that time, the numbers have steadily dropped. In fact, some accounts show they’re at their lowest point since the mid-1900s.

Many analysts insist this decline can be attributed in part to the ongoing rise in digital payments. Wrongdoers simply feel that since there’s not as much money in cash registers or safes, there’s little point in risking a robbery in many establishments. Though still too frequent, robberies are on a noticeable downward trend.

From Consumers’ Perspectives

Peace of mind is also increasing from the perspective of consumers. If a wallet full of cash falls out of your pocket or wallet or someone happens to swipe it, there’s no way to recover the missing money. It’s not even possible to prove how much was taken. Those who have lost their wallets or purses or had them stolen with a great deal of cash in tow were simply out of luck.

No one is denying that bank accounts and credit and debit cards can be hacked. As long as money makes the world go around, there will still be people out there trying to take what isn’t theirs. Still, digital payment security is increasing, and electronic payments leave behind a virtual paper trail that can be traced back to the point of fraud. From there, funds can be recovered.

Online Bill Payments

Businesses can also enjoy a range of benefits from digital bill payments. They no longer have to keep up with stack after stack of paper invoices. They don’t have to write countless checks to cover their suppliers, utility companies, mortgage lenders, employees, and other accounts payable. There’s no worry over checks or money orders getting delayed in the mail. Fewer bills are inadvertently being overlooked because of paperwork getting lost in the shuffle.

Since businesses can now make all their outgoing payments online or through other digital means, they have a higher level of convenience and simplicity than ever before. In many cases, they have fewer late fees and credit issues thanks to the factors mentioned above. Human error isn’t quite as problematic as it once was, either.

Incoming Payments

On another note, businesses can get their money from customers much faster. By accepting various forms of digital payments, today’s companies don’t have to wait for checks from customers to arrive in the mail. They don’t necessarily even have to wait for clients to visit their stores in person to make payments. 

Not very long ago, depositing payments into a bank account meant businesses had to rush to get to the bank before it closed. A trusted employee was sent to the bank with a bag of cash and checks to deposit the day’s funds. If he or she didn’t make it to the bank in time, the bag had to be placed in the night deposit box. 

Either way, companies often ended up waiting several days before the money actually showed up in their accounts. Today, deposits often happen instantly or within a few hours from the time a transaction occurs. Waiting is a thing of the past, so businesses get their money much faster.

Simpler Bookkeeping

Keeping track of incoming and outgoing payments internally was yet another problem. Employees largely had to enter payments and expenditures into spreadsheets or other types of logs. That took a great deal of time and effort, and entry errors were certainly a possibility. Today, digital payments can be linked to bookkeeping software, so those incoming and outgoing funds are adjusted automatically and accurately.

Higher Profits for Businesses

In addition to those other benefits, quite a few companies are seeing higher profits now that the digital payment revolution has taken over. Reports from the financial sector show that consumers make an average of 20 percent more purchases with credit and debit cards and mobile payment solutions than with cash. They often spend about twice as much with digital payments as well. In some cases, that figure surges even higher. 

Paying customers appear to be far less stingy and careful with their finances when they’re not counting out cash for a transaction. That means they’re willing to spend more. As such, businesses that offer a variety of digital payment options stand to enjoy higher profits both online and in person.

Greater Customer Reach

Before digital payments came to pass, consumers primarily shopped at stores in their local areas. They often had little other choice because many stores wouldn’t accept out-of-town checks and carrying stacks of cash was risky and nerve-wracking. Some people ventured out of town for shopping excursions, but those outings were generally few and far between. 

In those days, businesses mainly had to rely on local customers within their target audiences for sales. That meant their potential clientele was limited even in larger cities. Today, all that has completely changed. E-commerce has given businesses almost unlimited customer reach with the right marketing strategies in place. Furthermore, digital payment solutions have allowed customers to shop from virtually anywhere. 

All that has given consumers unprecedented selections of the products and services they’re looking for. They can research features and compare prices until they find the items that best meet their needs. In turn, companies that offer different types of digital payments can take advantage of the broader reach to generate far more income.

Numerous Digital Payment Solutions to Choose from

In the early days of digital payments, businesses didn’t have many options to choose from. Point-of-sale terminals and credit card processors were extremely limited. Some came with exorbitant fees as well. That left businesses struggling to see measurable gains from adopting those payment methods. Again, times have changed.

Numerous options are now available to companies looking to offer their customers digital payment methods. On the most basic level, businesses can choose from a vast lineup of point-of-sale terminals with various features. They can upgrade to contactless payment options, allowing customers to tap their cards or wave their phones over their POS terminals. Even biometric payment verification solutions and mobile POSs are available. 

Additionally, businesses can adopt a long list of online payment platforms for their customers to take advantage of. That further ramps up their reach and potential for higher profits. Companies can allow customers to pay from their social media sites and other sources outside of their dedicated websites. As such, customers are more inclined to make purchases.

On top of all that, businesses now have the capacity to compare the features of different digital payment solutions. That gives them the power to find the ones that best meet their unique needs rather than having to settle for a cookie-cutter option. 

Having more digital payment platforms to choose from also allows companies to find the ones that accommodate their budgets. It’s no secret that digital payment solutions come in an array of price ranges with different types of fees involved. Considering the widespread options now available, companies don’t have to choose those with lofty processing fees and other high costs.

Changing the Way Companies and Customers Do Business

Digital payments have definitely changed the world; there’s no arguing that point. They have given both businesses and consumers far more freedom than ever before. Customers can now take advantage of an entire world of products and services. Businesses can also enjoy virtually unlimited markets to draw from. 

With the digital payment revolution comes a long list of other benefits for businesses. Companies have numerous digital payment platforms and solutions to choose from, so they can find one that suits their needs. With the right platform, they don’t have to worry about debilitating fees. They can also bring in far higher profits and get paid much faster than in the past. 

Convenience can’t be overlooked, either. All the hassles of bank deposits, manual payment entries, and human error have largely become things of the past. When you factor in the advanced security of modern digital payment methods, the benefits increase by considerable margins. Digital payments are expected to evolve even more during the years to come, further ramping up their advantages. 

Xpress-pay is your number one digital-payment partner, making sure your business is alleviated from fees and receives 100% of the money due. Our many digital payment tools help you earn more revenue with every transaction and elevate each customer experience. As digital payments advance, so too will Xpress-pay, making sure your company’s capabilities are current and your bottom line is growing.

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/