It’s probably safe to say that everyone prefers to get paid sooner rather than later. In an ideal world, wouldn’t you want – and I’m picking a totally hypothetical example off the top of my head, here – to be paid in 30 minutes or less? Of course you would. In this article, Liron shares some of the many benefits of fast payments with debit cards, for both merchants and consumers.
Cheques, wire transfers, and ACH can take days (or even over a week) before funds clear. That’s a long wait in anyone’s book. It also relies on the payer having the payee’s bank account details. Most people carry their cards around with them everywhere, either in their wallet or digitally on their phone, but you’d struggle to find someone who could spout their bank account details off the top of their head.
This is where push-to-card payments come in, enabling any merchant that collects card details to send funds at any time. A push-to-card payment is pretty much exactly what it says on the tin – it’s a way to push funds to a debit or credit card instead of into a bank account (as opposed to pull payments, where money is taken out of a bank account to pay for something – but that’s another story for another blog).
There are two major benefits to push-to-card payments. One is speed – most payments to debit cards are approved in real time and funds reach the recipient in 30 minutes or less, all day, every day – even nights and weekends. The second benefit is that push-to-card payments are super easy to execute; if you have someone’s card number, you can send them money.
What do push-to-card payments look like in action?
There are endless use cases for push-to-card payments. Take an Uber driver, for example: payments for all their rides are collected through the Uber app, and the driver gets their fares for the day more or less instantly through a push-to-card payment.
Another example would be insurance claims. Let’s say you buy travel insurance online for a holiday to Thailand (lucky you!) and you pay for it using your card. But, while you’re out there, you have an accident (unlucky you). You can make a claim and, once it’s approved, get your insurance money instantly; because the insurer already has your card number from when you bought the policy, it can send the money to you straight away, instead of having to get your bank account details and carry out a bank transfer.
The same is true in gambling, lending or any business that needs to pay a supplier, freelancer or employee at a moment’s notice. It can even by used to disburse emergency funds, loans or pay outs to workers and small businesses in times when people desperately need the money – like we’re seeing now due to the COVID-19 crisis. You could use a wire transfer or give them a cheque, and a few days later your recipient will get paid; or you can initiate a push-to-card payment and they’ll get their money in the time it takes to watch an episode of their favourite TV show. It’s quick, frictionless, and easier for both the sender and the recipient.
Get up and running, fast
Of course, if the major benefit of a payment solution is speed, you don’t want to spend a long time putting it in place. At Credorax, we can help you rapidly deploy push-to-card payment solutions from the two main card schemes – Visa Direct and Mastercard MoneySend. In just a matter of days, you can offer quick, easy payments to literally billions of cards worldwide. We also support multi-currency pay outs, so it’s a truly global option. What’s more, we can indicate to you in real time, which issuers support fast funds, so it’s super easy to get money to your customers.
Are you ready to take the leap towards push-to-card payments? Contact us today to find out how Credorax can help you implement push-to-card payments in your business.
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