For business owners, a transaction with a customer is a touchpoint normally involving a sale that generates revenue. Successful business owners look beyond this revenue to the method of payment and what other benefits it may bring them. Modern digital payment systems allow businesses to get paid faster, more securely, with greater flexibility, and with lower operational costs.
What is a Modern Payment System?
While consumers have quickly stepped into the digital age using apps and online platforms for money transfers, many businesses still find themselves using clunky, old payment methods. Transactions are often highly manual and paper-based rather than digital. So, what is a modern payment system? Basically, it’s an electronic system that allows businesses to digitally connect their point of sale to a payment ecosystem. A business seeking to set up a digital payment system begins by establishing a merchant account through a payment processing vendor (aka merchant services provider).
The merchant services provider allows a business to accept payments by credit card or debit card. A good payment processor will help a business owner determine which solutions are right for them. This may include software and hardware solutions required to accept and process credit or debit card payments for both in-store and online sales.
Benefits of a Modern Payment System
Beyond the simplicity of the sale and increases in customers who use digital payment methods, business owners will find many other benefits of a modern payment system.
- Payment flexibility. A growing number of customers expect to be able to make payments electronically. Having the ability to accept all forms of payment is no longer a nice-to-have, competitive advantage. It is in fact a requirement of doing business. This includes credit cards and debit cards as well as contactless transactions like Samsung Pay and Apple Pay.
- Faster payments. Electronic transactions are much faster than cash or check-based payment systems with respect to collecting payments and reconciling accounts. In some cases, payment processors even allow businesses the option for same-day or next-day funding.
- Secure and accurate payments. Modern integrated payment systems are both more secure and accurate than non-integrated systems, which require a business to manually enter transactions.
- Operational cost savings. Some integrated payment systems offer businesses the ability to communicate simultaneously with multiple payment devices and workstations. In addition, these systems automatically update invoices when a payment is made, ensuring accuracy in accounting and saving time in reconciling accounts.
When a business changes over from a cash-based system to a modern payment system, the time associated with the day-to-day activities of running the business reduces dramatically. The result is often huge increases in inefficiencies and significant cost savings. It also provides an exceptional customer experience, which increases the likelihood of their regular return.
Finding a payment processing partner with transparent pricing, 24/7 customer service, and a variety of solutions will ensure your quick and easy success.