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Have you ever wondered why instant payments are catching on so quickly in the USA? As a business owner, you’re probably always on the lookout for ways to streamline your operations, save money, and keep your cash flow steady. Instant payment systems like FedNow® Service and RTP Network® are changing the norm, offering a much faster and more efficient alternative to traditional domestic money wire transfers. It’s no wonder that 86% of businesses reported using faster payments in 2023!
The hassle of domestic wire transfers
Traditional wire transfers have long been a staple for business transactions, but they come with their own set of challenges. One of the biggest drawbacks of traditional wire transfers is the slow processing time. It can take several hours, or even days, for a transaction to be completed. This delay can hinder your ability to manage cash flow effectively and make timely payments to suppliers and employees.
Another significant issue is the high fees associated with money wire transfers. Banks love to slap on hefty charges for sending and receiving wires. Businesses can shell out anywhere from $14 to $50 per transfer, sometimes even more! With businesses making an average of 19 wire transfers a month, those fees add up quicker than you can say “budget buster.” While wire transfers have been a staple, they’re also a drain on both time and money.
How faster payments move
FedNow and the RTP (Real-Time Payments) Network are instant payment systems designed to address the shortcomings of traditional wire transfers. Let’s break down how these systems work and their key features.
FedNow is a new instant payment service developed by the Federal Reserve. It allows businesses and individuals to send and receive payments in real-time, 24/7, 365 days a year. Transactions are processed almost instantly, providing you with immediate access to funds. As of early February 2024, about 470 banks and credit unions have joined the FedNow network, showing just how popular it’s becoming!
RTP, operated by The Clearing House, is another real-time payment network that facilitates instant payments. Like FedNow, it offers 24/7 availability and processes transactions within seconds, ensuring quick and efficient transfers. The Clearing House RTP Network even started off 2024 with a huge 76 million transactions.
How instant domestic payments fuel businesses
Say goodbye to waiting
Delayed payments can be a real headache, right? Sending money via money wire transfer often feels like watching paint dry – you send it off and then spend the next few days anxiously checking your account, hoping the funds will finally show up. It’s frustrating, to say the least, especially when you need the money to go through quickly.
But, with faster payments, that wait time could become a thing of the past. You’re getting paid instantly for your hard work instead of twiddling your thumbs for weeks. For businesses, prompt payments mean better cash flow management, fewer headaches chasing down overdue payments, and ultimately, a healthier bottom line. So, here’s to leaving late payments in the rearview mirror and embracing a future where waiting around for money is a thing of the past.
Your ticket to lower transaction costs
If you’re tired of getting hit with those sky-high fees every time you send a wire transfer, instant payments might just be your saving grace. Compared to the often steep costs associated with traditional money wire transfers, instant payments come with significantly lower fees, making them an attractive option for businesses of all sizes.
When it comes to domestic wire transfers, the costs can still add up pretty quickly. Even though they’re not crossing borders, you’re still looking at fees ranging from $14 to $50 per transaction, depending on factors like your bank and the specifics of the transfer.
Forwardly, with its competitive pricing model offering instant payments for just 1% of the transaction amount, capped at $10 per transaction. This transparent fee structure provides your business clarity and predictability, allowing you to accurately budget for their payment processing expenses without the fear of hidden fees.
Build solid partnerships
What if you never have to stress about late payments causing tension with your suppliers again? Sounds amazing, right? With instant payments, you can say goodbye to those frustrating delays that come with domestic wire transfers. Instead, you’re in control, making payments instantly and keeping your vendor relationships strong with timely transactions.
Late payments strain relationships for businesses – but with instant payments, you’re setting yourself apart as a reliable partner. Plus, the seamless integration with your accounting systems makes everything so much easier, saving you time and hassle while ensuring accuracy. It’s a significant shift for vendor relationship management.
Say hello to healthy cash flow
Instant payments offer a lifeline for cash flow management, unlike the uncertainties of domestic money wire transfers. With instant access to funds, you’re empowered to make critical financial decisions on the fly, ensuring your business stays agile and responsive to opportunities and challenges.
Businesses using modern payment methods improve cash flow visibility and forecasting accuracy. This real-time insight allows for better financial planning, reducing the risk of cash flow bottlenecks and late payments to vendors. On the other hand, traditional money wire transfers can be slow and unpredictable, causing headaches and missed opportunities. With instant payments, you’re not just managing cash flow – you’re making sure your business stays on track and ready for whatever comes its way.
The best of both: Instant payments + wire transfers
Consider how your business can leverage both instant payments for domestic transactions and money wire transfers for international payments. Instant payments offer the speed, efficiency, and cost-effectiveness needed for domestic operations, while money wire transfers remain a solid option for handling international transactions. This dual approach allows you to get the best of both worlds and manage your money more efficiently.
Ready to experience the future of faster business payments? Try Forwardly and enjoy instant payments through the FedNow and RTP Network. Pay bills for free and get paid at just 1%, capped at $10 per transaction. With lightning-fast speed, get your payments processed in 60 seconds, anytime and anywhere. But that’s not all – with Forwardly, you can import and export your bills and invoices directly from your accounting software, saving you up to 5 hours on manual reconciliation.
There’s no monthly subscription, and you don’t need to pre-fund wallets or open a new bank account. Make running your business easier and more efficient with Forwardly. Sign up today to experience the seamless world of instant payments!
