Listen on SoundCloud
Faster Payments, Counter Service by 7-11, and PayID: How Do These 3 Global Payment Methods Stack Up?
For far too many years, both customers and businesses simply dealt with the downsides of credit cards and other early payment options. Between security risks, failed transactions, and more, those payments left a lot to be desired.
Thankfully, there are more options to choose from these days. Modern payment options such as direct bank transfer systems are opening the door to faster, simpler, more secure transactions.
Of course, with more options comes more need for discernment. How do you know which payment systems will be the right fit for your business to help you reach more customers and receive safer, faster payments? Start by comparing these three popular choices: Faster Payments, Counter Service by 7-Eleven, and PayID.
Faster Payments is a direct bank transfer system based in the UK. It works in a fairly simple way. Your customer instructs their own bank’s mobile or online banking system to send a payment to your business, their bank debits the money from their account, your bank credits the money to your account, and you’re ready to go.
Faster Payments was first introduced in 2008 with the specific goal to minimize transfer times for these types of payments. In many cases, your transfer is complete, and you can access the funds within minutes rather than waiting several days. For a business that has a cash flow to maintain, this is critical.
This payment system has the benefits of speedy transfers as well as security and comfort for your customers. Faster Payments is also easy to access for a large number of the UK’s banking customers, as most major UK banks are directly connected to the network. Finally, this payment system offers a uniquely high transaction limit of £250,000.
Of course, there are disadvantages to consider as well. While transfer times are usually quick, they aren’t guaranteed within a certain amount of time, so you may still find yourself waiting around for transfers to complete. This is particularly true if your bank isn’t a member of the Faster Payments network. Keep in mind that this payment system is also limited to the UK exclusively, so it’s likely to help you reach customers in the UK but not elsewhere.
Counter Service by 7-Eleven
7-Eleven has become more than a simple convenience store or a place to pick up a quick snack for many people. In Thailand, 7-Eleven locations offer a unique payment system called Counter Service.
Counter Service is a way for customers to pay cash for online purchases by using 7-Eleven as an intermediary. First, the customer shops on your e-commerce site and decided to purchase the items in their cart. When they select Counter Service as they check out, you provide them with a specific barcode linked to their transaction.
The customer then takes that barcode to a 7-Eleven location with Counter Service. The clerk scans their code, and the customer pays the specified amount in cash. Counter Service then transfers the funds to your account which is linked to that barcode. In the meantime, the service sends you a confirmation that the payment was made so that you can send the customer their receipt and ship their products.
7-Eleven’s Counter Service expands your customer base to people who prefer to use cash or who do not have bank accounts. If you cater to customers who may not be tech-savvy or who may prefer the privacy of cash payments rather than digital payments, Counter Service is a helpful option to offer.
Keep in mind that there are downsides as well. Most notably, your transaction is stuck in limbo until your customer gets to a 7-Eleven and makes their payment. You can set a short deadline for these transactions, such as 24 hours, but that’s still one extra day compared to digital transactions.
Note that 7-Eleven Counter Service also charges fees to customers who use the service. This could be a deterrent for some customers.
Based in Australia, PayID is a unique and easy way for customers to send payments to their peers and to your business.
You start by registering for PayID and linking up your unique ID code with a specified bank account. Then, you can add PayID as an option on your e-commerce site or however you typically accept payments.
When a customer wants to pay you, all they need is your PayID code. They log into their own mobile banking or online banking portal, click to send a payment with PayID, and type in your PayID code. Their bank will show your business’s name so they can confirm that they’re paying the correct person.
From there, your customer simply fills in the transaction amount and sends it. The money is transferred to your account quickly. Your bank confirms the transfer so that you can send the customer their receipt and process their order.
Ultimately, PayID offers the best of both worlds. It has the safety and efficiency of a direct bank account transfer, but you don’t have the security risk of giving customers your account number. It allows for one-way transactions and makes them simple and safe.
There aren’t many disadvantages to PayID, but there are some. For one, it is only available in Australia currently. In fact, it was created in partnership with the Reserve Bank of Australia. For two, PayID may feel like a lengthy process for some customers because instead of clicking on a single link, they need to log into their online banking portal separately to make the transaction. Still, it typically involves fewer clicks than entering an entire credit card number and it’s more secure as well.
Choosing Your Global Payment Methods
While there are some payment methods that are accessible nearly anywhere on the globe, those are far from your only options. To give your customers secure payment options and to access your money more quickly, read up on the wide range of international payment systems available today.
Faster Payments, 7-Eleven Counter Service, and PayID are helpful options to start with. To learn how you can integrate these or other global payment systems, contact Macropay today.