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Is Electronic Funds Transfer right for my business?
Home » Investing » Electronic Funds Transfer » Is Electronic Funds Transfer right for my business?There are an extraordinary number of EFT options available for businesses of all shapes and sizes, so it’s difficult to state with any certainty whether any or all of those options offer your particular business an advantage over traditional cash payment. If, for example, you own a restaurant, the expense of installing and maintaining a point of sale system would likely be more than offset by the added convenience for your guests and employees. Regardless of the size of your business, your financial institution should be able to help you determine whether EFT is right for you and, if so, which EFT options fit your needs. Additionally, you might consider the following factors:
• Technological expense and competence: Even the most straightforward forms of EFT, such as direct deposit for employee earnings, will prove less difficult for you to administer if your business owns a computer and maintains internet access. On the other hand, if you’re looking at EFT options because you’d like to allow your customers to purchase your products online, the technological requirements immediately increase. Consequently, you’ll want to consider whether you’re willing to spend the money necessary for EFT administration.
• Employee/customer/vendor happiness: Potentially, at least, there is a lessening of human contact between various parties if you choose to employ some sort of EFT system within your business. Assuming that you are willing to forgo that contact, it’s important that you consider the other parties in your transactions. Despite the added convenience for all parties, certain vendors or customers may wish to retain the option for face-to-face contact when making or receiving payments.
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- Is Electronic Funds Transfer right for my business?