Electronic Funds Transfers (EFT payments) have been a game changer in the business world, providing a secure and convenient payment solution for transactions of all sizes. Is VoPay's EFT payment solution faster and more secure than cheques & wire transfers? Absolutely.
USD 103.2 Billion, is the number that the global EFT payment market will hit by 2028. Electronic Funds Transfer has become incredibly popular in Canada, increasing 49% over the past five years.
However, despite its many benefits, the traditional EFT payment process is plagued by inefficiencies making it slow and cumbersome for businesses. Here are ten reasons you should consider VoPay's innovative EFT payment solution as an option for your business.
What Does Electronic Funds Transfer Mean In Canada?
Electronic fund transfers are a convenient way to transfer money between bank accounts in Canada. They allow individuals to pay bills and make other payments quickly and easily. These transfers include:
• eChecks (an electronic version of the paper check)
• Direct debits ( money is withdrawn automatically from an account)
• Direct deposits (deposits directly into an account, i.e. payroll)
• Credit and debit transfers using a linked credit or debit card
The Friction Around Traditional EFT Payment Processing
Finance is an industry with many pain points; all payments are highly complex, including EFT payment processing.
As EFT usage continues to grow exponentially for businesses, traditional EFT processing poses a threat to organizations looking to scale. EFT payment processing services through banks and credit unions are offered via an online banking or file processing system.
Those familiar with either of these methods will immediately understand the challenges around processing EFTs. With five common record types in play and all requiring specific formatting inclusions, finance departments everywhere deal with the operational inefficiencies of manual EFT file formatting. The behind-the-scenes processing of EFT payment transactions is time-consuming, manual, and riddled with the possibility of human error from the get-go.
To demonstrate further, each file format must include the following:
• File Header Record
• Batch Header Record
• Entry Detail Record
• Batch Control Record
• File Control Record
Power Up with EFT Payments API Integration
The disconnect between money's movement and the time it takes to manage accounts receivable and payable presents a significant problem for businesses. The long, drawn-out process inhibits any visibility into cash flow. This is the crux of the issue we solve.
Access the fastest payment rails to send payouts to your vendors and suppliers and collect funds from clients. You'll have complete visibility over the entire process from one platform with a single API.
VoPay Standard EFT Payment Processing Time
Access faster processing in T+3 days over the traditional T+5 days with VoPay's direct bank payment service. Push or pull funds directly from the client's bank account using our developer-friendly API.
VoPay's Intelligent EFT (iQ11) Faster Processing Time
Offers same-day EFT and ACH processing. Gain complete visibility into each transaction's lifecycle and advanced bank account verification and reconciliations. Moreover, by adding a layer of data intelligence to our Standard EFT transactions, they become instant, like a credit card but with much lower transaction fees.
VoPay's EFT Payments Are Ideal For Businesses That:
• Need to make payments quickly
• Have a lot of recurring bills
• Regularly deal with the same vendors and clients
For example, rent collection, membership fees, loan disbursements, insurance payouts and payments for regular shipments from the same supplier. All these payments can be streamlined through a simple API connection.
1. Control and Visibility
Replace traditional payment methods for a more efficient payables and receivables experience. One of the major disadvantages of current payment methods is the lack of control and the waiting. Waiting for checks in the mail or waiting for customers to review invoices. By contrast, electronic funds transfers allow businesses to initiate customer payments and decide when withdrawals are made. Companies can track and view each transaction from initiation to confirmation, and they have access to full reporting for easy reconciliation.
2. EFT Are Cheaper To Process
Most online credit card processors charge 3% on every payment. Providing more ways for your customers to pay is beneficial, but at what cost? VoPay charges a fixed fee per transaction, saving businesses thousands of dollars monthly.
The reality is the cost of accepting credit card payments has far-reaching effects that most businesses don't even consider.
These include:
• Credit card expiry dates
• Credit card transaction limits
• Credit card fraud
• Credit card charge disputes
3. Flexible, Customer-Friendly Payment Options
Setting up recurring EFT payments and deposits is quick and easy. Your customers will enjoy the convenience of making EFT payments, especially when part of a recurring payments plan. The customer only has to provide their bank account information once. Plus, future payments can be fully automated.
4. Eliminate Manual Processing with EFT
Companies are pressured to do more with less while providing exceptional customer service. And while there's a bottom-line cost to every inefficient process we can find in an organization, the stakes are high regarding accounts receivable and the back-end handling of payment processing. Accounting departments spend too many valuable resources manually processing payment data and chasing up payments. Every time a credit card expires or a payment is missed, staff resources are allocated to these tasks. These payment processing inefficiencies may take hours, days or weeks to resolve.
With automatic EFT payments, transactions are scheduled in advance and automated to relieve these burdens. Using VoPay, businesses can integrate our payment processing API with their ERP and accounting system so transactions are reconciled automatically.
5. Prevent Human Error
Manual processing is required when using cash or cheques or traditional EFT, which has a higher risk of error. There's a risk of human error in counting, risk of fraudulent bills and extra expense and effort for an employee to manage the money or cheque from transaction to processing to in-person deposit at the bank. VoPay's EFT payments have less chance of human error.
6. High-Level Security
EFT payments are sent from one bank account to another and sit at bank-level security. By moving money electronically, businesses reduce the risk of paper cheques being lost or stolen and mitigate the risks associated with cheque fraud and forgery. Our advanced technology allows clients to efficiently verify their customer's financial accounts and transaction history and leverage advanced data analytics to assess risk, income, fraud, and more.
7. Improve Cash Flow
Having complete control over payables and receivables helps businesses with reliable, predictable cash flow—making planning and forecasting more efficient. Cash flow is a critical factor that can make or break your success. VoPay eliminates the need for businesses to wait days or even weeks to collect payments from customers, ensuring a constant and steady flow of funds. Well-organized payments and receivables at planned times throughout the month mean businesses can focus on what they do best--creating products and services.
8. Reporting and Notifications
One of the most convenient benefits of using an EFT payment system is instantly receiving notifications regarding payments sent, received or rejected. Additionally, businesses have access to advanced reporting capabilities to reconcile payments with ease.
9. Scale Faster
Saving costs associated with manual processing and operating expenses can significantly impact a growing business's bottom line. Automation and payment systems are critical to scalable growth.
10. Speedy Access to Funds
Funds are usually transferred in as little as 24 hours. Most traditional credit card funding options take up to one day.
It's clear that the one place you don't want to be—is left behind. EFT payments are the payment system of the future. With VoPay's EFT solution, businesses can enjoy the benefits of instant transactions, just like with credit card payments, but with much lower transaction fees.
