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What Are EFT Payments and Why Should You Switch?
How do EFT payments work in the alcohol industry? They perform faster and more compliant than traditional methods while still qualifying as COD.
What are EFT payments? If you’re looking for a better way to manage your B2B alcohol payments, Electronic Funds Transfer (EFT) is it.
Countless merchants and distributors use an EFT network for their B2B payment processes. This is because EFT payments provide businesses like yours multiple benefits.
In today’s digital world, EFT payment processing is becoming the way of the future as fewer and fewer businesses use a manual form of payment. Electronic payments add a layer of convenience to your day-to-day operations. And, you don’t need to worry about cash or a physical check or deposit.
What Is an EFT Payment?
An EFT payment is made from one bank to another. The process is done digitally through the Federal Reserve clearing system. Since it is all digital, there is no need for any use of paper documents. As a result, EFT payments replace cash, checks and money orders while still qualifying as COD.
In North America, cash makes up roughly 30% of transactions —showing that EFT payment processing has become a predominant form of payment among many businesses due to its simplicity and accessibility.
How Do EFT Payments Work?
EFT doesn’t change the product ordering and store delivery process –only the way you pay. To start, distributors send invoices right into an automated system. Then, they go through validation procedures to ensure compliance.
Once approved, EFT payment instructions are sent through the Federal Reserve for processing. All payments are made according to state payment regulations. After EFT payment processing, reconciliation files are sent to the retailer for their books.
The Benefits of EFT Payment Processing
EFT payments are vital when it comes to buying alcohol. Many retailers and vendors make use of electronic payments for a number of reasons. After all, they both need a way to send and receive funds in an efficient manner, and EFT payment processing offers them multiple benefits.
An important aspect of EFT payment processing is its ability to save a considerable amount of time. These digital payments can save retailers and vendors about 15 minutes per delivery. You don’t need to worry about wasting time to write and sign a physical check, all you will need to do is provide a signature.
Some places even have money order machines with a money order limit. This means that stores will have to spend time to complete a transaction for larger deliveries. Retailers can get their alcohol beverage merchandise sooner, and distributors can work on the next delivery.
It’s essential for businesses in the alcohol industry to remain in compliance with state and federal regulations. Failure to do so can result in getting blacklisted from buying alcohol. You could also face fines, or risk losing your liquor license.
EFT payment processing makes sure that funds get processed on time, on the appropriate date, so you don’t have to worry about penalties. Make sure to find an EFT payment solution that will ensure you stay in compliance.
Vendors and retailers enjoy EFT payments because they offer security as they are processed through a secure system. No cash or check on delivery means theft is reduced. Employees can feel safe when they do their job. And you don’t run the risk of a lost check or money order.
Data from EFT payment processing also goes through secured channels so your information can remain safe when you make alcohol purchases.
Gain Advanced EFT Payment Processing for the Alcohol Industry
If you’re looking for a way to improve your B2B payment process, consider iControl’s EFT payment solution, which is authorized to meet alcohol regulations in every state in the US. We provide a reliable way for businesses to make and track electronic alcohol payments, with security and convenience top of mind. And, of course, it ensures that 100% of payments get processed on time. To learn more, contact us today.