Online and mobile payments are a growing trend that will only continue to increase as customers get more comfortable with technology. Increasingly, customers are relying on their smartphones to pay their bills, pay for services, and pay for products. One of the biggest reasons is convenience.
According to eMarketer, it is projected that mobile payments will increase to $130.3 billion in 2020. What is fueling this growth is consumer acceptance, the “continued growth of digital natives” (or those who have grown up with technology), and technology infrastructure.
Another digital payment method that is also gaining momentum is the e-Check. An e-Check or digital check is a digital version of a paper check but without all the inconveniences and costs associated with a traditional paper check. Let’s take a look at why incorporating this digital payment method could benefit your business.
The Advantages Of Accepting Digital Checks
More businesses are seeing the benefits of incorporating digital checks as part of their payment method offerings. More payment offerings mean widening their customer base, encouraging customer loyalty. This is another great alternative for customers that would rather not use their credit or debit cards online. Here are more benefits to accepting digital checks for e-Commerce businesses:
1. Time Saver
Paper checks require a lot of hands-on processes. They take time to clear the bank. It takes time to track them. Of course, it requires time to get the check to the bank in the first place. Then there’s the time and expense it takes to order and pay for more checks when you run out.
On the contrary, digital checks don’t require tracking. You only need to verify that the recipient’s account details are correct. That is it. Plus, digital checks are instantaneous. You don’t need to go to the bank or order more checks.
2. More Secure
The money is secured digitally since digital checks utilize the same security system as direct deposits and payments. Digital checks are also secured by encryption that tracks the amount of money in the check and the account number.
This guarantees that the check is accurate. You also have the option of requesting your own, secure link, allowing you to make and receive payments efficiently.
3. Money Saver
When running a business, having a consistent cash flow is essential. By using e-Checks, you are allowing payments to process faster than paper checks. This ensures you receive your payments quickly.
Plus, you don’t have to worry about paying fees for bounced checks. If the customer does not have sufficient funds in their account, the bank simply doesn’t process the transaction. Also, as mentioned before, you no longer have to waste money buying paper checks.
4. Use Them Anywhere
Customers want a quick and efficient way to pay at checkout. Digital checks certainly deliver on this. Since checks are universal, there is more familiarity with their use by customers.
The lower the barriers to making payments, the more sales a merchant makes. If you operate an online store or any international business, you can make and receive digital checks from around the world.
5. Compatible With Most Accounting Software
Digital checks also have the advantage of integrating seamlessly with just about any accounting software. Accounting software transactions normally do not require a double entry.
Therefore, you can continue writing checks with your current accounting software without requiring extra software updates.
Digital Checks Are Beneficial For Your Business
As our world becomes more digital with the current advancements in technology, it only makes sense that businesses get on board with offering more digital ways to pay. The benefits of accepting digital checks can not be denied.
By adopting another payment method such as digital checks in our payment method toolbox, we are gaining the opportunity to save money, time, and most importantly, win the loyalty of our customers.