Back in the day people only had a limited number of options when it came to paying for things. A few short decades ago cash was king. Then along came checks and later on credit cards became a popular form of payment. However, the digital age has brought about an entirely new set of electronic payment options.
Payment-based applications such as Venmo, Zelle, and CashApp are just a few of the electronic payment options available to consumers and businesses today. When it comes down to it, no single form of monetary payment should be viewed as superior to another. Businesses should simply cater their payment preferences to the types of transactions they perform.
Payment Types to Consider
If you’re starting a business or are currently running a business – getting paid is a top priority. However, the method your business chooses to use can be dependent upon a number of different factors. Certain industries tend to favor some payment methods over others.
- Cash: cash is less frequently used today, but remains a popular choice for some businesses such as restaurants and certain service-based industries. Some people, such as the elderly, prefer paying with cash as it’s a more familiar form of payment. Smaller businesses may prefer cash since checks may bounce or take a few days to clear. Credit cards are also less cost efficient due to processing fees.
- Credit cards: credit cards can be used by virtually any business ranging from hotels to restaurants to service industries. However, businesses have to pay a percentage-based fee on these types of transactions. Customers enjoy credit cards due to their convenience, as people don’t always have cash on hand. Ecommerce businesses are required to use credit cards as cash and other forms of payment can’t be transferred digitally.
- Electronic payments: PayPal, Zelle, digital transfer (ACH) are common methods businesses use to pay employees and independent contractors. The adoption of these person to person (P2P) payments increased in popularity during Covid due to fear of illness and germ spreading.
- Mobile payment applications: Entrepreneurs and sole proprietors use Venmo and other mobile-based payment methods. These forms of payment can transfer funds between individuals and businesses. Examples of service providers who use Venmo include chiropractors, hair stylists, and other solo business owners.
- Checks: physical checks are becoming increasingly less commonplace with the advent of digital payments. However, business owners use checks to make payments to protect their cash flow. Checks take a few days to clear their bank – allowing them to hold onto their cash longer. Vendors are often paid by check.
Benefits of Different Bill Pay Types
Choose the bill pay option best suited for your needs. What makes sense for one type of business might not be optimal for another.
Here are examples of why customers use Docyt’s different bill pay options.
- Does your company have a vendor that requires next day payment? Sending a check and paying overnight shipping fees can be costly. Docyt offers multiple ACH payment options including standard, 2 day, and next day delivery.
- Do you have vendors whom you have to pay monthly and who only accept checks? Writing checks and addressing and stamping each envelope is tedious and time consuming. Docyt can handle it for you. Within Docyt, you can set up one-time or recurring payments. Docyt will handle processing, printing, and mailing checks to your vendors – saving you valuable time. Also, money will not be withdrawn from your bank until the check is deposited.
- Do you have vendors who need to be paid immediately when they drop off the product or complete the service? Docyt has a self-print option that prints checks on the spot.
- If you prefer to pay outside of Docyt with your own cash, check, or credit cards, Docyt will still handle the accounting for these transactions. Within Docy, simply select the payment type used such as cash, credit card, or check and the accounting ledger is updated automatically.
No matter which way you prefer to pay, Docyt has you covered.
Simplifying Bill Payment
Docyt streamlines the bill payment process using our automated, cloud-based software. Docyt validates and extracts invoice data, automates the bill payment process, and continuously updates these transactions in your accounting ledger.
Whether your company needs to make payments via check, ACH, cash, or credit card – Docyt manages and tracks all documentation including check stubs, invoices, and more. Docyt helps simplify your company’s bill payment process every step of the way. Read more about Docyt bill pay here.
Interested in learning more, schedule a demo.