The days of receiving payments in cash or by check only are long gone. Many people rely on the ability to make electronic payments in some form. This is true whether they are shopping online, visiting a local restaurant, or paying the utility bills. All types of electronic payments require the use of one of the different payment gateways. Here are some things the typical consumer needs to know about these approaches and why they do make a difference.
Instant Receipt of Payment
The nice thing about gateways is that they allow the buyer to tender payment to the seller in a real-time fashion. Thanks to the fact that the gateway is set up to confirm the funds are found in the account backing the payment, there are no worries about delays in the processing. The result is that the seller can provide the buyer with the goods or services immediately.
Consider the example of shopping on an online bidding site. Upon winning the bid, the buyer notices that it is possible to remit the payment using one of the more popular payment gateways. With a couple of clicks, the payment is on the way to the seller immediately. In most cases, a confirmation email will be sent to the buyer and serve as proof that the payment was received by the seller. Owing to the quick payment, the seller will prepare the purchased item for shipment the following business day. That means the buyer has to wait less time for the item to arrive.
Setting Up Recurring Payments
Not all forms of gateways are limited to one-time transactions. It’s possible to supply the payment information and authorize the automatic deduction of recurring payments. For example, an individual may pledge to make a monthly payment to a non-profit organization. Instead of having to remember to access the site and manually generate the payment each month, the system is set up to trigger that transaction on the same date of the month until the individual cancels the process.
The same general approach can be used to schedule utility payments, mortgage payments, and any other monthly obligations. In terms of avoiding late fees, it’s hard to beat this process.
Tracking Payments Received and Sent
Business owners can use payment gateways to track debits and credits made through the system. Typically, this is done by logging into the gateway account, specifying a report type, and then choosing a date range. The result is a breakdown of every transaction handled through the gateway. This provides a wonderful way to ensure the accounting records are kept up to date and are fully accurate. Even individuals who used to balance their checkbooks when the monthly statement came along can now generate reports several times a month and perform the reconciliation if they like.
There is no doubt that the concept of the payment gateway has changed the way people do business. Company owners provide their clientele with a simple and easy way to remit payments and have proof those payments are completed. Business owners can track receipts as well as payments to their vendors with ease. In terms of simplifying the process of managing transactions, using a gateway is hard to beat.