One of the biggest challenges faced by online merchants is receiving money days after the transaction takes place. This irregular cash flow can affect the business in several ways. It not only hinders the crucial processes but also results in delays. At this point, instant settlement offers huge relief to online business owners. It not only overcomes the liquidity and cash flow challenges but also keeps your business up and running in the best way possible. In this article, we will discuss some ways in which instant settlements can speed up the performance and growth of business along with several other important pieces of information. Let’s dive right in!
The instant settlement, also known as real-time settlement is a feature, or say a functionality, which involves the transfer of funds from a customer’s to a merchant’s account in a matter of seconds. So, what takes days and weeks, can be done in seconds using the instant settlement feature.
In simple terms, it means, when a customer finishes the checkout process, the amount he transfers immediately get reflected in the merchant’s account. This facility is offered by payment gateways. So, if you want to enjoy the benefits of instant settlement, all you’ll need to do is find an online payment gateway with a robust instant settlement feature.
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Online payment gateways offer merchants an efficient, secure, and cost-effective payment solution, and their consumers a smooth shopping and checkout experience. Instant settlement aids to the growth of business in the following ways :
Immediate access to the earnings allows merchants to take timely actions in response to both challenges and new business opportunities. From purchasing inventory, reinvesting, paying wages to clear pending suppliers’ invoices, and debts promptly, are some of the perks offered by instant settlement. These benefits empower merchants and give them more flexibility as compared to the traditional payment systems which keep a hold on the transaction funds.
By eliminating the need for bank interchange fees, and other charges, instant settlement account-to-account transfers minimize the cost of accepting payments. This allows business owners to increase their savings, and invest more in growth rather than spending huge amounts on payment processing.
More than often, credit and debit card transactions carry a potential risk of chargebacks and other associated charges. Instant settlement via account-to-account transfer eliminates the chargeback mechanism and allow merchants to deal with transaction-related disputes in an easy way. With an instant settlement enabled payment gateway, merchants don’t need to worry about hidden charges imposed by the payment processors.
The instant settlement provides e-commerce business owners with greater flexibility and visibility on the cash flow and certainty of payments. This simplifies time-consuming planning and offers merchants extra time to focus on their growth and betterment.
Although not directly, instant settlement helps in improving your business relationships and reputation among your partners and stakeholders. This is because of the balanced cash flow that allows you to make timely payments and make informed decisions regarding the growth of your business.
Payment gateways are the best options for having an instant settlement facility for your business. The best online payment gateway includes instant settlement as one of its key features. It not only offers you quick access to your earned funds, and reduces the processing cost, but also automates your payment processing and provides a secure and faster transition environment to you and your customers.
So, if payment delays and blocked funds are slowing down your business, it’s time you should upgrade to a reliable payment gateway with an instant settlement feature.