Gone are the days of paper-based payments and slow bank transfers that come with waiting for payment providers to issue funds. In 2020, the United States was projected to transact almost $900 billion in faster payments according to the Mercator Advisory Group.
Instant payouts also referred to as faster payments, offer a convenient and efficient way to send and receive money. Faster payments are becoming increasingly popular with the rise of on-demand access because real-time payments offer many benefits for businesses and individuals alike. In this blog post, we will explore the benefits of instant payments in more detail, specifically for heavy duty repair and tow operations, and how faster payments can help to improve cash flow and keep business operations running smoothly.
What is meant by instant payment?
Instant payments are electronic payment solutions that are processed and settled in real-time. This means that you can receive your funds immediately, without having to wait for the payment to clear. Instant payments are becoming increasingly popular, as they offer a convenient and efficient way to send and receive money.
How do instant payouts work?
Instant payments are digital payments made using an electronic network, which allows for the real-time processing of payments. When offering instant payouts, the sender will typically use an online platform to initiate the transfer. The payment will then be sent through the electronic network to your bank account via debit card or ACH. Once the payment processing is complete and the bank transfer occurs, you will typically receive your funds immediately, without having to wait for receiving payment. This means that you can access the funds as soon as the payment is processed, which can be beneficial for businesses that need cash flow flexibility.
In addition, by using an instant payout service, businesses may incur a small fee for the service, but depending on how the payment is processed, it may help the business avoid other types of fees charged by banks and other financial institutions.
What are the benefits of instant payments?
Instant payments are one of many innovative payment solutions offering businesses real-time payments and access to funds while expanding preferred payment methods. Instant payments offer businesses a number of benefits. For starters, real-time payments leverage technology used within mobile apps or online applications meaning requests can occur without physical interaction, or making a special trip.
Instant Pay Benefits for Heavy Duty Repair and Tow Providers
Perhaps, for heavy duty repair and tow services, the most obvious benefit is that it allows these businesses to receive payments more quickly.
Access to same-day funds
Access to same-day instant funds means faster payments for businesses and what they can do with that cash. A key benefit of instant payments is that funds are typically available within seconds versus a traditional transfer, which can take up to one to two business days, depending on service level agreements, for the transfer to the recipient’s account to be complete.
Faster payments can be especially important when there is a rush to get a job done, as the business can then quickly access the money it needs to pay for parts, labor, and other associated costs.
Cashflow Improvement
Another benefit is that they can help businesses manage their cash flow more effectively. When payments are received slowly over time, it can be difficult to predict how much money will be available at any given time.
Instant payouts ensure that businesses have access to money when they need it, which can help avoid cash flow crunches.
Furthermore, businesses are able to receive payments before going into the weekend if looking to reimburse staff and or place orders for the coming week.
Expense Reduction
Finally, instant payouts can also help businesses reduce their expenses. This is because businesses no longer need to wait for payments to clear in order to cover their costs. Instant payments can help businesses avoid late payment penalties and improve their credit score saving businesses money in the long run.
Instant payouts increase your heavy duty repair and tow operation’s cash flow, so you can:
- Stock necessary parts
- Order specialty parts
- Easily cover labor costs
- Quickly reimburse mobile repair-related expenses—i.e. fuel, mileage, etc.
- Keep bills paid up and on-time
- Purchase specialty equipment, or cover machine repairs
What is the average industry costs for instant payout type services?
While there are many benefits associated with instant payouts, there are also some costs involved. The average industry costs for instant payout-type services are relatively low considering the time it takes for instant payments to reflect, which is typically very short.
The average industry cost for an instant payout service is typically around 1-2%. This means that businesses will need to factor in these costs when using instant payouts.
What is the average time it takes for instant payments to reflect?
Once an instant payment has been made, the funds usually appear within 30-minutes to the designated account, but typically they will be available within seconds to minutes, meaning businesses can access their money right away.
Now Offering Instant Payouts in RoadSync Checkout!
We now offer instant payouts for heavy duty repair and tow customers using RoadSync Checkout.
Improve your cash flow flexibility and access cash from same-day transactions ensuring you have access to funds when needed, so you can keep your business running smoothly.
How to use Instant Payout in Remote Checkout
With instant payouts, you’ll be able to transfer a portion of your daily income into your bank account.
Similar to other cash access apps, a small fee of 2% will be charged with each instant payout transaction. This fee will be deducted from the remaining balance to be paid out per your regular payment schedule.
To get started, click on the admin tab and select Instant Payouts. Simply add an eligible card, a debit card to be exact, to set up direct deposit into your bank account. Once a card is added, you’re ready to start requesting funds.
If you need help activating or setting up this new technology feature, contact your Customer Success Manager at success@roadsync.com.
Who can use Instant Payouts in RoadSync Checkout
Access to instant payouts is subject to approval and pre-qualification. As with any instant payout service, new customers will undergo a waiting period before qualifying to activate the payment method.
When and how much can I transfer on a daily basis?
Daily limits are in place and vary depending on a variety of factors, but you can make as many transfers daily, even on weekends and holidays without having to wait for your regular payout as long as you stay within your company’s allotted daily limit.
For more questions and to get started with RoadSync Checkout Instant Payouts, contact your Customer Success at success@roadsync.com.
In Summary—Instant Payouts for the Win!
With the likes of Venmo, Paypal and other payment platforms, instant pay services have expanded recipients’ preferred payment methods, and in a world of on-demand access, faster payments haven’t just become increasingly popular but are a necessity for many consumers and businesses alike.
At RoadSync, we know heavy duty repair and tow providers need cash flow flexibility to keep their business up and running. That’s why the main benefit of our instant payouts solution was designed to help ease the cash flow crunch and ensure cash is available when our customers need it.
