Online payments have altered the norms of transactions over the years. Online payment is fast, convenient, and appropriate to the conditions worldwide. In the United States, a person spends an average of 5 to 6 hours on their phones daily. It stands to reason that online payment processing isn’t much of a hassle for them and is way more convenient than manual payments.
Manual payments has been around since the beginning of time. The physical transaction—taking goods or services in terms of monetary exchange, is how humans have processed over centuries. This procedure may be termed outdated or too conventional in the current world, but it’s still considered the safest form of transaction.
Naturally, one of these payment procedures substitutes the other, but both have their sets of advantages and disadvantages.
So, what are the manual and online procedures of payment?
Online Payments:
Online payments is a transaction made over the internet. It allows customers to make cashless payments using their credit cards, online banking, and third-party payment applications. According to a study by IEEE, about 70% of the people of the United States believe that mobile payments will completely takeover manual payments by the year 2030.
People’s trust in this form of payment is understandable considering the benefits it provides. It presents the advantage of saving time and costs, increased sales for businesses, and reduced transaction issues. But these transactions are vulnerable and are often under the threat of internet fraud.
The Advantages and Disadvantages
Pros
- Online payments are efficient and can be carried out remotely, from anywhere.
- Shoppers don’t have to stand in queues to make payments.
- Virtual Payment Processing Solutions reduce the security issues of carrying hard cash.
- Giving the option of one-tap payment to the customers helps businesses with more traffic and conversion.
Cons
- There’s a significant security concern as the online flow of cash can be targeted by scammers.
- There’s a need to protect the credentials for your e-wallet, which is extra work and worry.
- It may come with hidden charges that you’re not aware of.
Manual Payments
Manual payment is the transaction you make in-person that involves physical cash or other process of payments. About 22% of the people in the US distrust online transactions. This is where businesses use a physical form of payments. For instance, if a customer refuses to pay online, the business owner would send an invoice with the amount and due date.
Pros
- It’s safe, and everything is documented.
- Minimum chance of fraud and payment theft.
Cons
- It requires physical effort and a lot of footwork.
- Requires physical connection with other people
Get Secure Payment Processing Services
From simple online payment processing solutions to a full fledged POS system, you can make sure that the business transactions in your business are always efficient and secure. Contact us today to find out how you can save on your credit card processing fees and received next day funding!
