Digitizing Merchant Payments: Why and How
The continuous technological advancements are slowly replacing the traditional way of payment, cash, with more advanced digital payment options starting with credit cards to the new player on the block, digital wallets. If you are observant, you might have noticed that many of your friends are no longer carrying money around.
How Digital Payment Works?
Simply put, the process of payment will involve two parties, the sellerand the customer. For the transaction to take place the business owner must possess a merchant account. This account is connected to a virtual terminal or an online portal, the portal is the center of all the action.
The customer’s payment, whether it was contactless, swiped, or keyed in, will be processed through the portal and sent to the payment issuer, e.g., the bank. If the customer’s funds can cover the purchase the transaction will be directly approved. At the end of the day, all transactions are batched to make the final deposit into the merchant bank account.
Why to Consider Digital Payments?
If you are a business owner, and you are still not convinced to incorporate digital payment methods into your business, here are the incredible things you are missing out on:
Quick Payment
This will appeal to your customers. People nowadays are no longer interested in visiting their banks to withdraw money in order to pay for things. They are looking for convenience. They want something that will enable them to make payments instantly and without wasting any of their time.
So, shops providing digital means of payment will definitely be one of their top options since they know what their customers are looking forand they make sure they tend to their customers’ needs. And if you look at it from another angle, you don’t have to deal with the math of cash and giving back change.
Security
You might have heard some of your old-fashioned merchant fellows saying that they don’t think these new payment methods are safe and that they would prefer dealing with real money that they can actually see and touch. Of course, that is a good way to approach things, and people have different preferences. But we need to correct this misconception about digital payments lacking the element of security.
Digital payment methods offer many security options including, tokenization, encryption, and SSL. And it is actually safer for you as a business owner since there is no risk of fraud, customers using counterfeit money, or being robbed. Think about these points next time someone says, “cash is king.”
Better Money Management
When using digital payments, you will have better insights into your cash flow, and you will get detailed statements on your income without risking any human errors when calculating profit and expenditures.
Reach a Larger Audience
With digital payments, you can set up an online platform and reach customers willing to purchase your services and products but have the barrier of physical distance.
Digital payment methods give you a golden opportunity to increase your sales and keep up with these modern times dominated by digital solutions. Choose wisely, there are a lot of banks like ADCB that offer great digital solutions designed specifically to satisfy your business needs as a merchant.
