If you are wondering how to modernize your business, look no further than electronic payments. They bring your enterprise from the redundant traditional paper-based system to modern standards. Furthermore, they save you time, money, and other resources.
People everywhere have already embraced electronic payments services like Global Private Payments. Now, it is time for companies to adopt and add them to their lists of services. However, before moving forward, they should understand better all the different types of e-payments. Below are the most common ones!
What Are Electronic Payments?
Electronic payments are financial transactions between two entities taking place digitally. They are the next step in economic evolution, and businesses everywhere are rushing to adopt them. Some of their most prominent benefits include:
- Low transaction time
- Cost-effective money transfers
- High-security protocols
- Minimal room for human error
- Low risk of fraud or money-laundering
Additionally, e-payments decrease the risk of payment processing errors. Money mishandling is a common factor leading to significant financial losses. So, businesses accepting electronic payments exclusively safeguard their financial future. The same goes for customers who prefer them over cash or check payments.
What Are The Most Common Types of Electronic Payments?
One of the best parts about electronic payments is their versatility. For instance, they come in many forms and involve different financial instruments. Therefore, businesses looking to adopt e-payments can pick the ones that best suit their activities.
Here are the most common types of e-payments:
Card Payments
The first card payments occurred almost 70 years ago. However, back then, people couldn’t imagine how far this paying system would go. Similarly, we cannot fathom where card payments will be a century from now. However, we can imagine they will still be highly profitable for both businesses and customers.
Credit and debit cards are very familiar worldwide. They owe their popularity to the convenience of paying cash-free for products and services. However, people also like them because they support fast and secure payments with little or no human interaction.
Bank Transfer Payments
This type of payment used to be physical only. For instance, if you wanted to make a bank transfer, you had to go to the bank, fill a form, and send it. The receiver would have to do the same to access the funds you sent.
Nowadays, bank transfers happen almost instantly through electronic payments. Nor do you or the receivers have to travel to a bank and fill in forms. Instead, you can do it with a touch of a button from the comfort of your home.
Virtual Card Payments
These cards only have a digital representation. However, they provide you with the same advantages as physical debit and credit cards. Usually, they contain a randomly generated 16-digit number. Every transaction has to include this number, also known as a token. And, the best part about it is its high level of security.
Cross-Border/FX Payments
FX payments enable companies to send and receive money internationally. They can do so through wire transfers or cross-currency transactions. Alternatively, they can employ forward contracts. Lastly, they have the benefit of helping businesses pay their overseas suppliers and collaborators.