Bank transfers is one of the most commonly available types of Alternative Payments. In fact it is one of the oldest bank-based payment methods - it's been in use long before eCommerce appeared. Generally speaking, there are two ways of moving funds between two bank accounts nowadays: wire transfers (also referred to as SWIFT payments), and transfers using local clearing systems (sometimes also called iACH).
Wire (SWIFT) transfers are the most popular approach for international bank transfers. They are usually fast (several hours), reliable and expensive. For a mid-size company, price of a single bank transfer is in the range of $15-$40. The fees can be charged to sender's or beneficiary's bank account. In addition to that, banks charge currency conversion fee of 2-3% if sender's and recepient's accounts are in different currencies. Due to their high costs, wire transfers are rarely used for low-value transfers.
Local Clearing Systems
Local clearing system transfers are conducted using the means of interbank clearing infrastructure within certain country. Majority of countries have developed such clearing system in the recent years. These systems serve for domestic payments. They are usually cheap, fit for low-value settlements, and are performed by banks in batches once or few times per day. Examples of local clearing systems are ACH, or Automated Clearing House (USA), BACS (UK), EFT (Canada) etc. Many banks and financial or payment institutions are members of SWIFT and can initiate bank transfers. This service is considered commodity while providers compete through their pricing, technology (reports, interfaces, accessibility of the service). The local clearing systems are only available to domestic institutions. There is a very limited number of global payment providers with local presense in many countries which offer initiation and acceptance of payments conducted via local clearing systems. These vendors usually offer a wider range of services which include not only SWIFT and local clearing system bank transfers, but also global payouts via paper checks, eWallets etc.
Bank Transfers in eCommerce
For eCommerce merchants, acceptance of bank transfers can make much difference for the sales bottom line in geographies where card payments are unpopular or for high-risk industries traditionally not served by credit card processors. Two types of bank transfers are usually available through online payment pages - online and offline transfers. For online payment shoppers are redirected to their bank website for payment completion. In this case the payment is performed immediately after an order is placed and so the goods/services can be dispatched right away. For completion of an offline payment, shopper needs to go to the bank account in his own or needs to go physically his bank location. These payments take much longer and have much lower completion ratio than online payments. For this reason merchants usually prefer online bank transfers when banks allow that.
It is common knowledge, that Payment method №1 in the world is credit cards: everyone has at least one credit card, most of the people keep them at hand, to close the deal right away the client just needs to fulfill CC details. Besides, if a card is not available for some reason, you offer them to address Payment Method №2 - E wallet: portable as accessible on any mobile device and PC, credit card details are closed and secure. These payment methods are universally recognized and habitual. Looks like no problems could occur here.
However, sometimes these ways do not work for the client, and the reasons vary:
-the card is not at hand at the moment;
-the card is blocked or expired;
-the client distrusts online wallets and prefers to settle in cash;
Most PSPs do not have a solution to such problems and a notion that they may arise. Fortunately for you, we totally understand common users and the challenges our merchants face to close the deal with them. That is why in such cases we have a unique opportunity for you to satisfy such customers by meeting their payment preferences.
In case credit card and e-wallet payment is out of question, you can suggest bank transfer. Bank transfer payment with Payboutique works the following way.
You as merchant create an invoice for your customer to pay and give us all the bank details and sales reference number. We process the details and you send your customer a fulfilled receipt in Russian. The customer contacts his bank online and requests to transfer his money to the specified merchant bank account or he prints the receipt and addresses the bank, which provides him services or any other bank, then the money is transferred instantly and easily.
What is the most important point here, the client ALWAYS makes a bank transfer within Russia, so no additional fees and worries on his part, and if necessary the bank acquierer in Russia transfers the funds overseas to your account.
Implementing bank transfers with Payboutique is beneficial, because you:
- don`t need to worry about inter-bank communication and wether it will work out
- are sure that the transfer system is immaculately aligned and works as clockwork
-get your money timely, deliver the service to the client and get no complaints
- get swift consolidated reporting on the issue
We do our best to ensure our merchants utilize every possible payment method in order to:
- satisfy clients needs making the payment process most accessible and convenient to them
-deliver the clients goods and services as quickly as possible
-increase conversion rates
-build-up the number of happy satisfied clients
- increase revenue