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Payment Industry Gets a Nudge with Push Payments

Payment providers embrace push payments as two companies announce new disbursement services

Atlanta-based Repay and San Antonio, Texas-based Payment Data Systems Inc. announced this month that push payments, also referred to as buyer-initiated payments or instant funding are among their new service offerings. The companies say push payments are giving consumers the instant funding options they crave.

How Push Payments Work

With push payments, the buyer receives and approves the invoice and submits the credit card number to cover the payment. However, the supplier never sees the credit card number. The supplier receives the payment into its business checking account. The reconciliation of the payment is automatically balanced for the buyer and supplier because it is done in real time, completing the transaction. Wire payments, ACH transfers, and direct deposits are examples of push payments.

Push Payments vs. Pull Payments

Most organizations use the more traditional pull pay model. Under this model, a buyer receives an invoice from a seller or supplier, approves the invoice and then provides his/her credit card number to the seller for payment. The seller processes the payment, and then you settle the payment amount with the invoice amount.

The Beauty of Push Payments

With push payments, the buyer maintains complete control of the transaction. Since your card number is never shared with sellers, you cut down on your risks of fraud and identity theft. Other benefits include:

  • There’s no waiting for payment reconciliation because its automatic
  • Payments are completed faster and more efficiently
  • The buyer ensures that the amount charged matches the amount paid

More About Repay and Payment Data Systems Inc.’s Services

Repay’s instant funding service allows organizations to send transactions directly eligible Visa Inc. debit and prepaid cards via Visa Direct, which the card network’s real-time debit service. With this service, lending clients can use instant funding instead of using a check or submitting an ACH transfer. Repay believes customers will not only champion the service because it provides funds instantly, but it will make transactions more efficient and enhance the customer experience.

Push payments is just one part of Payment Data Systems’ new money-disbursement platform, which offers automated clearing house payments, push to debit cards, as well as virtual and physical card issuance. Additionally, its platform, which is part of a customizable card-issuance service, also enables disbursement to e-wallets, Apple Pay, Google Pay, and Samsung Pay. Under this platform, Payment Data Systems is giving businesses the opportunity to offer its employees, contractors, and other payment recipients the chance to choose how they want to be paid. They have these options:

  • Prepaid debit MasterCard
  • Real-time deposits to checking accounts
  • Traditional ACH or direct deposit
  • Paper checks

Payment Data Systems says its push payments are giving consumers access to an account that can retrieve real-time disbursements. This also will no longer force businesses tasked with making these payments have to partner with multiple providers or integrate with multiple systems to disburse funds.

A Few Last Words

Repay and Payment Data Systems’ moves to include push payments is giving consumers and businesses more of what they want – more options and satisfying their needs for instant payments. The public demand for having things now is not going to wane. Payment providers that recognize this and follow suit will reign supreme among the others that ignore it.

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