Thursday, February 27th, 2020
The modern lending environment can make excessive use of push payments. Let’s move forward to see how lenders can benefit from the push payment technology.
Push vs. Pull Payments
Do you know the difference between pull and push payments?
- Pull Payments or Debit Transfers: after the borrower has submitted the required data and the payment is authorized, the lender pulls the funds from the borrower’s account.
- Push Payments or Credit Transfers: the borrower transfers the funds right to the merchant one time or on a recurring basis. The funds can also be sent to the borrower’s prepaid/debit card.
What payment services are you using for your online transactions? Do you need help with reliable and low-cost payment processing services in the U.S? Well, this can’t be an issue if you turn to a respectable payment processor comparison expert like Best Payment Providers U.S. that guarantees the most honest reviews on processors.
With a true merchant services comparison specialist like BestPaymentProviders.com, you can find the safest and cheapest merchant processing services and the best help with push payments. Make sure the comparison company gives special attention to terms, complaints, and integration.
Reasons Why Push Payments Are Important
Faster payments are growing in their importance for both customers and merchants, as well as for governments. They’re paving a path towards safer and more convenient transactions. Let’s discover the benefits offered by this type of payments:
- Great for payroll direct deposits, mobile P2P services or wire transfers.
- Lenders can push money to borrowers’ debit/prepaid cards for real-time funds disbursements.
- When push payments get initiated, the payer’s bank reviews the transaction, and in case there’s a lack of funds, the transaction will be declined right off the bat.
- Almost instant.
- Aren’t associated with risks for both merchants and payers, unlike pull payments.
- Usually irreversible, thus being away from chargebacks.
- Their simplicity streamlines reconciliation for B2B.
- Ideal for targeting the millennial group: U.S. millennials are interested in speed, ease, efficiency, and convenience in all their transactions more than any other group.
- B2C push payments guarantee faster payments for consumers.
- Employers can transfer funds immediately to debit/prepaid cards, and employees can use them without delay.
Push payments are gaining more traction all over the world. It’s no surprise since they make funds become available faster.