Today there are numerous ways for businesses to accept payments online. Whether it is a credit card, eCash, ACH, or an eCheck, companies have multiple options to choose how they want to receive payments. To the average user, the go-to option for payment is usually a credit card or using a bank account via ACH. However, most users overlook two important differentiators between all four of these payment options: speed and cost. Taking a deeper look into each option can help your company make better, smarter decisions.
What is the difference between all four payment options
Credit cards, eCash, ACH, and eCheck are all methods users can pay with PayStand, but of course, each method has its benefits and disadvantages. While credit cards and ACH are currently preferred, this is only due to lack of knowledge in what payment options are accessible. ACH tends to require long wait times before you receive your money. Credit cards dig into your company’s profits due to the high processing fees involved. eCash requires use of a cyber-currency, which hasn’t become mainstream yet. However, eCheck is a growing option that provides businesses the power to take control of their AR – and to get instant fund verification, adding a layer of security to the core of anyones business - payments.
What is eCheck?
eCheck is simply the digital evolution of the classic paper check. With paper checks, the payee is protected with their signature, and the person receiving the check can easily deposit it into their bank account, often instantly. eCheck has brought the paper check up to date with the ability to securely transfer payments between two-bank accounts instantly over the internet. Users login directly to their bank account to transfer the payment to yours - with one of the lowest processing fees out there. With PayStand, customers have access to over 18,000+ banks across the country, so now it’s easier than ever to use eCheck. The benefits of eCheck include lower fees, faster transfer time, and the security you expect when handling financial transactions.
How can eCheck lower processing fees?
With eCheck, customers can securely make payments over the Internet from their bank accounts with low fees (especially for high-value payments), fast transfer time, and the security you and your customers expect when handling financial transactions. This is often why eCheck is becoming the preferred payment method for businesses. Because eCheck requires the payee to use their bank login before transferring money, the payment rail comes with instant fund verification, preventing the funds from bouncing back.
How does eCheck save time?
The eCheck system was built entirely separate from the credit card and ACH financial systems. With credit card systems, it often takes 1-2 days for businesses to be paid by the credit card companies. With ACH, it is often at least 12-24 hours since ACH applies the batches of transactions often at the end of the workday. eCheck, however, is instant, and saves companies an enormous amount of time. Finance departments in companies can save tremendous time on accounts receivables with eCheck. By being able to quickly be paid, instantly access the money owed, and save time often spent on tracking the status of your outstanding invoices, eCheck is changing the game. Plus, with eCheck and PayStand, your money is instantly transferred and invoices are automatically updated due to PayStand’s integration with popular accounting software. That can help increase office efficiency, along with customer happiness due to the convenience eCheck offers all parties involved.
How secure is eCheck
Has a customer’s check bounced or a credit card failed to swipe? Fraud is rampant in the financial industry and causes headaches for all parties involved. But eCheck can help! With multiple layers of security built in, plus the security behind PayStand, eCheck helps prevent fraud and ensure companies can be paid on time. While you can pay with your bank account via ACH, eCheck adds an additional layer of security when logging in to pay with your bank. eCheck also instantly verifies the balance of the account, to make sure there are enough funds for the invoice, and then instantly transfers them. Since customers are logging in and verifying the transaction before it proceeds, it makes it harder for customers to claim fraud, since they approved the transaction. In addition, PayStand’s use of the blockchain technology adds an additional layer to prevent fraud by preventing modifications, making eCheck the safest way to pay online.
Why is eCheck the future?
As more and more people and companies continue to push for more transparency in the payment industry, a value we at PayStand support, the choice of payment methods is starting to change. More and more companies have begun to pass on credit card fees to customers or set earlier due dates to customers paying via ACH to be more transparent about how much items and services really cost. Thus, the choice is clearer than ever: eCheck is the future of payments and is becoming the preferred payment method for business-to-business payments. eCheck saves businesses money, time, and instills confidence that payments are accurate. As they often say, “time is money” and what better way to save time and money than with eCheck? Plus, with the additional layers of security and convenience available with PayStand, it’s possible for companies start to look out for not just themselves, but also their customers.
If you’re interested in learning more about eCheck and other features offered via PayStand, don’t hesitate to contact us today.