As innovation in digital payment methods increases, cash is losing popularity. Card payments like debit and credit cards, digital wallets, and buy now pay later options are fast becoming the preferred way for customers to make purchases online. Other popular methods include direct deposit and bank transfers (such as domestic ACH). These are particularly important for businesses that need to schedule recurring payments, such as salary payments or subscription-based fees. They are also popular for companies with multiple employees or suppliers who need to receive their funds quickly and without unnecessary fees.
E-wallets are another popular option for online transactions. These are a great choice for platforms that accept payments from customers and then distribute them to sellers or service providers. Whether you need to collect payments on behalf of a software platform or on-demand marketplace, or you simply want to offer your customers a more secure way to send money, a reputable e-wallet can help.
Debit Cards
A debit card, also known as a bank or check card, looks like a credit card but works differently. It draws money from a checking account, meaning you can’t spend more than what’s in your bank account (unless you have overdraft protection).
Debit cards are safer than cash because transactions appear on monthly statements, and you can report lost or stolen cards to the issuer. They can be used at ATMs, gas stations, restaurants and online and are usually accompanied by PINs. Some people prefer them because they’re easy to carry, widely accepted and offer varying levels of fraud protection. However, they generally have fewer perks than credit cards.
E-wallets
E-wallets, or digital wallets, are a mobile payment solution that allows users to pay quickly and securely. They are able to store credit card, debit card and banking information. They also connect to payment platforms like PayPal, allowing consumers to purchase goods and services at physical locations without having to fetch their wallet and cards.
Though they might seem like a new development, e-wallet technology has actually been around for a long time. According to Tucker, e-wallet systems were established as early as 1998, with the founding of PayPal. They’re able to help make global payments faster and more efficient. They also offer a higher level of security by only showing merchants a tokenized account number rather than the actual card details.
Bank Transfers
Whether you’re transferring money to friends and family or paying for goods or services, bank transfers (also known as wire transfers) are a secure way to get the job done. However, there are a few things to keep in mind when using this payment method.
These payments can be domestic, with funds transferred between accounts at the same bank, or international, involving transfers between banks in different countries. They can also be free or cost more than a cash deposit or withdrawal.
Choosing the right bank transfer method depends on speed, fees and where your money is going. Whether it’s a traditional money wire or an app like Zelle, Popmoney or Venmo, you’ll need to decide which is best for your needs.
A bank transfer can be either internal, meaning that it’s between your own bank accounts or external, with funds moved from one account to another bank. In both cases, you’ll need to provide account information and possibly a routing number and the name of your recipient.
The most common type of internal transfer is an ACH, or automated clearinghouse, transfer. This is the fastest option, but it can also be expensive if you’re sending a large amount of money.