Technology has played a major role in streamlining the success of so many business endeavors over the years. The latest tech solution that has been gaining popularity is the integration of electronic payment systems. But, many people are not aware that the foundation for electronic payments was established when the first ATM was invented. Electronic messaging was created by the banking industry to facilitate the use of automated teller machines. It was also vital to have a network for the payment system, as credit cards became a popular payment instrument.
Streamline financial processes
The first and most relevant key advantage of having electronic payments for a business is that it allows a company to streamline its financial processes thus saving everyone involved some valuable time. The use of electronic payment services allows for faster fund transfer transactions as well as easier access to financial accounts. The payment system and each step of the payment cycle is dependent on the payment transaction messages. These electronic messages are typically encrypted to keep the information safe.
Another key advantage is the costs you’ll be saving when your business transitions on online payments. It is already a significant saving when your entire financial system goes paperless. Add on to this the less need of manpower to stay on top of your accounting and you are already increasing your ROI. Also, with more choices of providers to purchase an electronic payment system from, their rates to open an account for one are steadily dropping to stay ahead of the competition.
The next advantage is the ease of access one has to all the company’s financial transaction history all collated into a manageable account you can access through multiple devices at any time. Each electronic payment transaction also gets recorded without having to input each one manually every time it happens. This means that you get more accurate tracking of funds. If a business still deals using paper-based payment such as issuing checks for payables, the actual process of getting those checks accounted and readied for sending can cause delays due to so many openings for human errors even before they are mailed out.
Another key advantage of using electronic payments as a primary choice over cash, checks, or credit cards is the higher level of security you will get against fraudulent activity. This is because digital money transactions are much easier to track and can be monitored as it happens. It is also much harder to forge these types of transactions as it is for company checks or even credit cards. Nearly all payment systems have integrated security measures. A couple of these security measures include the necessity to use a password to login to the account and having a two-step verification process. In the payment cycle, there are also security measures that are in place like that of a bank transfer requiring confirmation with the use of a code before it is completed. The most integral advantage of a business having an electronic payment system is the most commonly known benefit – the ability to expand and reach a larger customer base online.