ZZ Top said it best and it continues to be a major theme in business. If you provide goods and/or services, you need to be paid for them.
These days there are more ways to be paid beyond cash and checks. Peer-to-peer payment apps and systems are taking over this space. What is available, and which one should you use?
First, let’s make a list. Here are a few of the top systems out there:
- Facebook Messenger
ACH or automated clearing house, is a network that coordinates electronic payments and automated money transfers. Use it to move money between banks. There may be a fee.
CashApp is just that: an app on your phone. It is a service offered by credit card processor Square. It has a maximum transfer amount of US$7,500.
Facebook Messenger is new to the payment space and relies on its users having a Facebook profile. However, it may take up to five business days to receive payment.
Google Pay is popular because of the search engine and its accessibility. Integrates well with Gmail but can take up to 24 hours to receive payment.
PayPal is the original payment system. Once acquired and then sold by eBay, it allows for fee-free transfers (between PayPal accounts) to family members. However, if you have a business account, expect fees up to 3.5%.
While owned by PayPal, Venmo is a separate platform. It is best for reimbursing your friends after a shared dinner or as a way to get cash to someone quickly. No fees if you can wait more than a day. But you can only send money via the app.
Offered by the big banks including Wells Fargo and Chase, Zelle is a way to send cash from account to account on the same day without a fee. You can use either your desktop or smartphone.
Are you responsible for payables at your company or just want to be paid as an individual or contractor? Consider one of these options. As with any service, product or offering, there is no one-size fits all: check out demos, read up and consider a trial before buying or downloading.
For more on how to manage your finances, call or write to us. TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the boardroom.
*photos courtesy of Unsplash (Nathan Dumlao and David Dvoracek, photographers)