Can Faster Payments Expedite Contractor Work?
If you have been working in home improvement or contracting, then you already are well-aware of the delays that can happen. Whether it’s a problem with zoning or just an issue with getting your workers on board, there are always delays happening around every twist and turn. With the faster ACH payments that businesses are now capable of doing, many people are beginning to see new ways to handle red tape – or at least shorten waiting times. Here’s how it’s affecting businesses of all kinds, according to PYMNTS.
The most important thing that people are beginning to realize is that the new Same Day ACH payment charges are very popular. In fact, the new technology accounts for 13 million different transactions, all totaling $17 billion in sales during the last 3-month period. 32% of all those transactions came from business-to-business transactions.
For groups like retail and contracting companies, faster ACH payments means that they will be less likely to struggle at the end of the day. These rapid payments will allow them to get the financial cushioning they need without having to worry about having to plan for “goof ups” in the system. With faster payment, scheduling becomes easier and less likely to require guesswork. Simply put, it makes everyone’s life a lot easier.
Moreover, in the contracting world, getting faster payments may mean that you also get access to funding for materials. For example, a plumber who gets money upfront via a Same Day ACH payment may be able to restock on his piping, thereby actually improving his ability to provide good customer care. Meanwhile, an artist may be able to get art supplies that would allow him to finish a commissioned piece faster.
However, all is not good in the financial neighborhood. There is one industry that has seen its struggles increase due to the new same day payments. The financial tech industry has been having a lot of problems actually keeping security and speed up to the current standards. Because payments clear much faster than usual, algorithms and other veracity checks are getting crunched for time. As a result, there’s a slightly higher chance of fraudulent payments going through.
Thankfully, the Fintech industry is doing a great job of making sure that everything is in order and that things will be smoothed out. Are you looking into Same Day ACH payments, or other forms of fast pay methods for your company? If so, call Red Payments for help. Our qualified professionals can link you with the best payment solutions for your company’s needs.