Bank transfer is a payment method that allows consumers to transfer money to bank accounts around the world. Usually when making a bank transfer, consumers are given a unique reference number and details of the bank account where they can make payments. Then consumers will complete the transaction the way they want to pay. These payments can be made by phone, mail, or through their online banking application.
Bank transfer is also a very safe and secure payment method, because both account holders must have a proven identity and there is no possibility of rejection when payment is made as long as the required funds are sufficient. Therefore, both people and businesses often use the bank transfer method for their transaction needs.
Bank transfer benefits for your business
Most businesses that use bank transfers to collect payments do so for two main reasons:
Less transaction fees on smaller payments (larger amounts may require CHAPS transfers, which include fees). The lack of transaction fees other than large payments is a huge reduction in fees. Credit card transactions, on the other hand, can cost up to 3% of the total payment. Huge potential for comparative long-term savings
Low payment failure rate. The low failure rate is also a clear incentive. Each failed payment is lost revenue and additional admin fees when repairing, which is very annoying for businesses that operate with good profit margins.
Benefits of Bank Transfer for Sellers
The following are the benefits of using bank transfer for sellers such as:
- Safe and secure transactions.
- There is no possibility of a payment reversal.
- Transactions are not subject to a chargeback.
- Fully electronic payments.
- This payment method is customer friendly.
Common problems that often happened for bank transfer
The biggest problem with bank transfers is the ‘push’ payment method, which means each payment is initiated by the payer. This requires processing payments from the hands of the business that collects the payments. In addition, there are general problems that often occur, such as potential delays in the payment settlement process. Based on this it is known that payments such as bank transfers can lead to higher debtor days and longer debt, because customers inevitably forget or sometimes choose not to pay and cash flow problems that arise due to missed payments.
As you can see, despite some of the benefits, bank transfer limits can cause a bottleneck or bottleneck for your business. As is the case once a payment is made, if a customer sends their payment to the wrong account, they have no way of guaranteeing that the payment will be returned. For this reason, other solutions are needed in transaction activities other than the bank transfer method. Cardless is considered as a solution that facilitates transaction activities, especially in today’s digital era where everything is done on a mobile basis. With the Cardless method you will be facilitated in terms of transactions such as cash withdrawals without cards and cash deposits without cards.