Pay cashless: what are the options?Florence Earle Coates - November 24, 2022
In many countries it is already common practice – cashless payment with a credit card, a bank card or via an app on the smartphone. What cashless payment options are available and what to watch out for.
What is a cashless payment?
If payments are transferred directly from one account to another, this is referred to as cashless payment transactions . Coins and bills stay in your wallet. Instead, cashless payment options are used.
In the case of cashless payment, the account of the payer is debited with the amount owed. The amount owed will be credited to the payee’s account accordingly. How long it takes for the money to reach the payee depends on the type of payment method used https://www.homebuyingguys.com/texas-dallas/
How does cashless payment work?
With cashless payment, credit cards, debit cards or Girocards are inserted into a card terminal. To confirm a payment, the PIN is entered or the payment is authorized with a signature. The amount is then either debited directly from the checking account or charged to a credit card account.
Cards equipped with a so-called NFC chip also enable contactless payment . NFC stands for Near Field Communication and designates an international standard for the secure transmission of data by radio over short distances. To pay, the card is simply held in front of the card terminal. Contactless cashless payment is also possible with the help of smartphone apps in which the payment cards have been stored.
What are the options for cashless payment?
In addition to credit and debit cards, Girocards and smartphone apps, there are other options such as direct debit, bank transfers or checks for cashless payment.
The direct debit procedure
With direct debit , the bank automatically debits the amount to be paid from the payer’s account. This procedure is usually used to settle recurring payments such as rent, insurance premiums or electricity or telephone bills.
Before collecting a payment by direct debit, the payee is obliged to obtain a direct debit mandate from private individuals or a company direct debit mandate from companies. With the basic direct debit procedure, it takes at least three bank working days for the amount to be credited to the recipient’s account. With the company direct debit procedure, it is at least two bank working days.
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