Retailers and distributor who use alcohol payments need to be more aware of electronic payment options – they're changing the industry for the better.
What Are EFT Payments and Why Should You Switch?
What are EFT payments? They are digital payments that replace traditional methods while still qualifying as COD, only faster, more compliant, and secure.
What are EFT payments? If you’re looking for a better way to manage your 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 is becoming the way of the future as fewer and fewer people and 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 Are EFT Payments?
EFT are payments made from one bank to another. The process is done digitally through the use of 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. EFT 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 accuracy.
Once approved, EFT payment instructions are sent through the Federal Reserve for processing. And all payments are made according to state payment regulations. After processing, reconciliation files are sent to the retailer for their books.
The Benefits of EFT Payments
EFT is 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 payments offer them multiple benefits.
An important aspect of EFT is its ability to save a considerable amount of time. These digital payments can save retailers and vendors about 15 minutes per delivery. You do not 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 is essential for businesses in the food and beverage 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 payments make sure that funds get processed on time on the appropriate date so you don’t have to worry about the 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 payments also go through secured channels so your information can remain safe when you make alcohol purchases.
iControl Can Help You
If you are looking for a way to improve your payment process, consider a solution from iControl. You can improve your company's operations with the help of our B2B payment solution. We provide a reliable way for businesses to make electronic alcohol payments and helpful information like how to track eft payments.
EFTDirect offers the convenience and security you need for alcohol payments. Our EFT payment solution is authorized in every state. And it ensures that 100% of payments get processed on time. To learn more, contact us today.