Faster Payments: What it is and how it works
When you take payments as a business, it’s always been the case that you’ll usually have to wait a few days before the money gets to your business’ bank account.
This is because when a customer makes a card or online payment, the money will sit in your Merchant Account until it’s cleared into your business account.
You’ll always get the money. It’s just been part of the process that the money sits in this other account (usually between 3-5 business days) before landing in your business account.
With faster payments, this process is quicker, and you can usually receive your funds the next banking day.
Faster payments have been around for a while, and they work for any payment you can take as a business. Whether it’s through card, online or a payment over the phone.
How faster payments work
Faster payments work precisely the same as any other transaction you’ll complete in your business.
When the customer pays using their card, a check will be made that they have the funds available, and if the funds are there, the money will be transferred to your merchant account and then to your business account.
The only difference is the speed at which faster payments work.
Instead of waiting a few business days, you get your money quicker, which can be a huge help when it comes to cash flow in your business.
And if you take payments on a Friday, or over the weekend, the money will be in your business account the following Monday.
What types of payments work with Faster Payments?
Essentially all the payments you’ll take in your business will be able to use faster payments to get you your money sooner.
The types of payments include:
Single payments - These are the one-off payments a customer will make either in-person, online or over the phone. They usually cover a single transaction that’s processed at the time of the purchase.
Direct debits - If you accept regular monthly payments or charge a subscription for your services, you can use faster payments with your direct debit payments. The money will be taken from your customer on the designated date and deposited into your business account the next banking day.
Do all banks accept faster payments?
Yes, almost every major UK bank can receive and process faster payments, so you’ll likely be able to access them without looking for a new business bank account provider.
If you aren’t already accepting faster payments, you should talk to your bank to ensure they accept them.
Get money into your business quicker with faster payments
While you might not think waiting 3-5 business days is a long time for your business to get paid, it can seem an age to wait when you need to build a reliable cash flow.
With faster payments, you can get money into your business quicker and ensure your cash flow is working smoothly and efficiently to secure your business’ future.
And it’s never bad to get your money faster, right?
If you want to know more about the faster payments options offered by Handepay, get in touch
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