EFT payments are secure, less expensive, and more efficient than manual transactions. An EFT transaction costs you about 10 times less. They are also environmentally friendly!
Why Use EFT Payments for Alcohol?
Alcohol is a multi-billion dollar business in the United States, and one of the few businesses that are expressly addressed in the constitution. Each state is bound by its own regulations. Utilizing electronic funds transfers (EFT) for your alcohol payments can save you time, money, and help keep you in compliance with state laws. So what is an EFT payment? An EFT payment is an Electronic Funds Transfer, or an internet-based transfer of funds from one bank to another using the Federal Reserve clearing system. EFT replaces checks, money orders, or cash.
SEE ALSO: A History of Electronic Funds Transfer
How do EFT payments save time?
When deliveries are made, both the retailer and the vendor want to get the drivers and the massive trucks in and out quickly. On average, an EFT payment will save 15 minutes per delivery, as the driver will not need to wait on a check to be written and signed, or the money order machine to generate money orders (a $3,000 delivery to a store with a $500 money order limit would equal 6(!) money orders.)
With EFT payments, only a signature is required at the time of delivery. Furthermore, with EFT there is no longer a need to go back to the store when an authorized check signer was not available during the first delivery attempt. It eliminates lost checks or money orders. The risk of theft is reduced by eliminating the driver carrying cash. It reduces the risk of assault or robbery of the driver.
How do EFT payments save money?
With EFT, you no longer need to prepare a deposit slip and make a trip to the bank. After delivery, drivers return to their home base, where the invoices are submitted to iControl for payment using a “job” such as an EDI feed, or an FTP. If you are a distributor, you simply submit your invoice for payment and the funds will be deposited into your account. Funds are deposited on your specified due date. This gives you cash in hand on settlement day and keeps you in compliance with the heavily regulated alcohol category.
Reconciliation has been simplified by electronic invoice processing and it is possible to post data directly to your accounting system. You no longer have to worry about mis-keyed information and time wasted on correction.
By making sure your payments are processed on the appropriate due date, you are always sure to stay in compliance with state and Federal regulations. Failure to keep compliance can result in being black listed from alcohol purchases, fines and penalties, or even a loss of your liquor license. We’re here to help you make sure that doesn’t happen.
iControl’s electronic payments solution for Beer, Wine & Spirits utilizes our industry-leading technology to provide Retailers and Distributors with a payment alternative that is convenient, compliant and secure - at a fair price. iControl is currently available in all 50 states and processing Beer, Wine & Spirits payments in 46 states... and we’re still growing!