Everyone likes getting paid. When your business uses electronic systems to send money directly into bank accounts, it says a lot.
I once had a client tell me; ‘When I send money electronically, it makes my business look more professional, as if we are bigger than we are.’
As some of you may know, Telpay’s system gives businesses the ability to send money anywhere, with just a few clicks of the mouse. That’s very powerful.
Understanding how paying electronically impacts the receiving party is important. Here’s a look at how the people and businesses you pay feel about getting paid by direct deposit to their bank accounts.
Paying employees by direct deposit is Telpay’s most popular service. In short, employees LOVE getting paid directly to their bank account, and what’s not to love? Before most employees get out of bed, their pays are deposited directly into their bank accounts. That’s a pretty nice way to start the day!
Many employees appreciate that their funds are available upon deposit, as banks have been known to place ‘holds’ on cheque deposits. Most importantly, payroll by direct deposit saves employees the aggravation of having to go to banks to cash their cheques.
I’ve spoken with hundreds of CFO, accountants and business owners and it’s not surprising that most of them agreed that direct deposits from Telpay are the best way to get paid. Why? First off, it’s free! When compared to costly credit card fees, free is nice.
Direct deposit means the money is in the bank account, giving suppliers quicker access to their money and improving cash flow. There is one other reason suppliers prefer direct deposits from Telay: a little something known as ‘payment consolidation’. Consolidation means that all payments made to a supplier’s bank account are rolled up into a single deposit each day, making for simple reconciliation. Fast payment + easy reconciliation = happy supplier.
International Suppliers, Contractors or Employees
Most international suppliers prefer direct deposit to rather than international cheques. American suppliers have complained that their banks place holds on cheques (2-4 weeks), charge fees as high as $35, and will charge exorbitant exchange rates. Sending USD cheques is better but snail mail is slow no matter what the currency.
The bottom line is simple. The best way to ensure your business is successful is to pay attention (no pun intended) every aspect of your business. Paying suppliers and employees in a way that makes them feel important will nurture trust and respect with everyone in your payment ecosystem.