Accept digital payments during COVID-19 in QuickBooks
An individual instructs, authorises, or orders a bank to debit or credit an account maintained with that bank through electronic means known as a digital payment.
Advantages of Accepting Digital Payments
When you accept payments online, you get:
- Buyers don’t need cash because they can pay with debit cards, mobile wallets, and other methods directly from their bank accounts.
- When they don’t have enough money in their bank accounts, they can use credit cards and get loan limits to make purchases.
- Buyers are enticed to make transactions through incentives such as cashback and loyalty points given on digital payments.
Cash Management and Taxes:
- Small business owners should keep digital records of sales or invoices, which are required for GST payment.
- Customers’ payments can be collected remotely.
- Fear of counterfeit money, cash loss, or robbery is no longer a problem.
- Credit card companies provide 45-day interest-free credit to business owners to pay vendors with credit cards.
Access to Credit and Other Services on Demand:
- Banks and financial institutions will be able to see your transaction history and, as a result, will be able to give you loans based on it.
- mPOS (mobile Point of Sale) providers may provide businesses with value-added services such as inventory tracking, electronic receipts, and more.
What is the Best Way to Accept Digital Payments?
The digital payment systems mentioned below can be used during the COVID-19 pandemic.
RTGS: Real-Time Gross Settlement is a system that allows for the continuous and real-time settlement of fund transactions on a transaction-by-transaction basis. The term “real-time” refers to the processing of instructions as soon as they are obtained.
The gross settlement, on the other hand, means that each of these fund transfer instructions is settled separately, one at a time. This method of payment is mainly used for transactions with a high dollar value. As a result, the minimum amount sent via RTGS is Rs. 2,00,000, with no maximum limit. The only disadvantage of using the RTGS facility is that it is not open 24 hours a day, seven days a week, and consumers can only conduct transactions from 7 a.m. to 6 p.m. on working days. Furthermore, as of July 1, 2019, the RBI will no longer charge processing fees for RTGS transactions.
NEFT: National Electronic Funds Transfer is a centralised electronic fund transfer system that allows you to send money from one bank account to another securely and conveniently. NEFT currently operates in half-hourly intervals during the day in batches. Furthermore, the RBI does not place any limits on funds transfers through NEFT. Banks, on the other hand, might set limits based on their risk perception.
Furthermore, the recipient bank does not charge any fees for inward transactions while using NEFT facilities. Outward transactions, on the other hand, are charged fees based on the amount transacted. The only disadvantage of NEFT is that settlement occurs in batches, and the device is not accessible 24 hours a day.
IMPS: Immediate Payment Services is a cutting-edge, real-time payment service provided by NPCI 24 hours a day, seven days a week. Customers can move money instantly across India using banks and RBI-approved Prepaid Payment Instruments (PPIs). Furthermore, this service is available through various networks, including telephone, phone, ATM, SMS, and branch. Individual member banks and PPIs decide the charges for remittance via IMPS. As a result, you can double-check with them.
UPI: The United Payment Interface (UPI) is a real-time payment system created by the National Payments Corporation of India (NPCI) that allows different banks to connect and transfer funds in real-time. A single mobile application from any participating bank can be used to access multiple bank accounts and move funds. Consequently, a system like this incorporates different banking features, facilitates seamless fund transfers, and allows retailers to accept payments through a single application. This system allows instant money transfers via mobile devices 24 hours a day, seven days a week, 365 days a year. The aim of implementing UPI was to enable account holders with multiple bank accounts to send and receive money using their Aadhaar Unique Identity number, mobile number, or virtual payment address instead of providing bank details such as account number, account form, bank name, and IFSC code.
To conclude, QuickBooks Desktop software helps you managing accounting and bankings. In this current situation, you will know how you can accept the digital payment, so please read the whole blog carefully. I hope that this blog was helpful and was worth a read.