Apparently it’s money that makes the world go around, the world go around, the world go around (presumably via instant money transfer) and it’s funny to be in a rich man’s world.
Whilst you may or may not agree that it is money that makes the world go around (whether by instant payment or not), I doubt there are many business leaders who are finding running a business in today’s world funny.
You and/or your staff may be working all night and all day to pay the bills you have to pay, which is sad and, to continue to misquote Abba, there never may seem to be a single penny left for you, but thankfully, it’s not just that it’s too bad. In fact, there are ways for you to retain more of your revenue in these challenging times, it’s about getting secure instant payments, via acount to account payments, into your bank account instantly, automtically reconciled, and without huge fee deductions and hidden charges.
In this blog we’ll go through:
1. What are account to account payments and are they secure instant payments?
2. Account payments – how do they work?
3. Account payments – advantages compared to card payments
4. Account payments – advantages compared to bank transfers
1. What are account to account payments and are they secure instant payments?
Account to account payments are the result of new technology, that is backed by government, called Open Banking. Account to account payments are an alternative to taking card payments, and a more secure method of receiving instant payment via bank transfer. As compared to both cards and bank transfers, account payments mean secure instant payments in your bank account at lower cost, meaning you get to retain more of your revenue without any extra work – if that’s not the dream plan to make you a wealthy man or woman enabling you to have a ball (more Abba), I don’t know what is.
2. Account payments – how do they work?
FinTechs, like Ordo, who are regualted by the Financial Conduct Authority (FCA) are connected, via APIs, to the banks. When a business or organisation wants to request and collect payment, they use an Open Banking provider, like Ordo, to facilitate the collection of secure instant payments from their customers.
Using the secure Open Banking provider, let’s say Ordo, the business sends a request to their customer for payment. The customer receives a secure message which is in the businesses own branding asking them to pay and detailing how much and what for etc. The customer recieves this message via text, email, post or WhatsApp, and either clicks the secure one time use link or ‘pay now’ button, or scans the QR code included in the request. This takes them into their online bank or mobile bank app where they will be presented with the instant payment that has already been set up for them. All they do, if they recognise the account payment request and are happy to pay, is click confirm, and an instant money transfer is facilitated, directly from their bank account to your bank account. The instant money transfer lands in your desired account, automatically and correctly referenced, and Ordo notifies you that you’ve been paid. There are no fees deducted, no hidden charges, just instant payment, in full, evey time.
3. Account payments – advantages compared to card payments
Let’s compare receiving secure instant payments via account to account payments with collecting bills via card.
Here’s where you’re really going to be able to start planning that ball, as account to account payments mean you’ll be keeping more of your hard-earned revenue yourself, rather than paying a lot of middle men and women along the way.
Card fees are around 1.5% to 4.5% of each transation value, there is normally a minimum payment in addition, possibly monthly subscription fees and the cost of buying and maintaining card reading hardware. This all adds up. The reason all these fees are payable is there are a lot of parties in the process to be paid: your bank, the payer’s bank, card schemes, and merchant and card acquirers. That’s a lot of mouths to feed in fees, when essentially, all a business wants is a customer account to account payment into their own account.
By using account payments to get your instant money transfer from your customers, you’re not only gaining a cash flow boost, you’ll be saving all the fees, so you get to keep all your income, not have every Tom, Dick and Henerietta taking a cut.
Account to account payments are charged for by way of a simple flat fee on a per transaction basis. It will never be more than 20p to use Ordo, and if you’re processing larger volumes, you’ll qualify for a volume discount, meaning you’ll be paying around 80% less to collect your secure instant payments via account payments than if you collect card payments.
4. Account payments – advantages compared to bank transfers
If your business collections model is to email your clients an invoice containing your bank account payments details to which your client makes a bank transfer, you’re firstly making your business extremely vulnerable to fraud and losing money, and secondly, you’re leaving a lot for your client to do in hoping they remember to make the bank transfer instant payment.
If you enable the receipt of instant money transfer via account to account payments, you’re giving great customer payment options: the account to account payment is presented to the customer via a secure link, ‘pay now’ button or QR code in a text, WhatsApp, email or post, it requires minimal effort for the customer to make that instant payment. With a bank transfer, your customer would have to proactively remember to initiate the payment, look up amounts and references, and manually type in your account number and sort code – any of this could be forgotten or mistaken and would lead to your business not receiving the instant payment.
With account to account payments, there are no account or card numbers to input, the customer receives a real time notification of your payment request which, within a couple of taps on their phone, they can make secure instant payments to satsify, with minimal fuss – great customer payment options at minimal cost, meaning you can save whilst improving your customer service in receiving instant payment.
Stop funding card schemes and middle people from your business and retain all of your revenue – adopt account to account payments and get secure instant payments into your account every time. Talk to Ordo to find out how you can integrate to receive instant payment within weeks and make your revenue collection always sunny (yep, more Abba)
Retain revenue by adopting account to account payments to ensure your business receives secure instant payments every time. Advantages of account payments compared to bank transfers and cards