Electronic Payments Benefits

Electronic payments can benefit your business by extending your customer base; boosting cash flow; reducing costs; enhancing customer service and improving your competitive advantage.

Five reasons why Electronic payments improve customer service – the five ‘Cs’

1. Choice – like your competitors, you can offer a wide range of payment options
2. Convenience – they remove the need for invoices, cheques, cash and BACs
3. Credit – they may allow purchases that would otherwise be delayed
4. Concessions – small discounts to encourage online purchases improve the perception of value
5. Competitive Edge - if you don’t offer the full range of payment options but your competitors do, what does this say about your business?

Five reasons why Electronic payments increase profitability

1. Convenience – removing administrative resources required by invoices, cheques and cash
2. Immediacy – credit cards enable instant purchasing (without delay)
3. Improved cash flow – payment at the time of purchase reduces the pressures caused by 30-day invoicing
4. Growth – open additional payment channels via the phone, mail order and Internet and increase your customer base. More customers mean more revenue.
5. Competitive advantage – match and beat the services of your competitors and gain the edge

The following sections explain the processes, costs and risks behind electronic payment systems. The Glossary option will help you to understand any technical jargon as you go along.

Next Section > Ecommerce and Electronic Payment Fundamentals