Guide to Bulk Payments & The Convenience of Payment Aggregation
Nowadays businesses are involved in financial transactions with several banks and financial institutions. There are a number of responsibilities such as optimizing cash, maintaining liquidity, securing finance, controlling risk, and even managing bank relationships.
If you want to expand your business or your business is still growing, and you want to minimize such responsibilities to keep the entire focus on your business then a payment aggregator is the best option.
Payment aggregators are third-party providers that enable businesses to process e-commerce or mobile payments without being associated with the bank. Payment aggregators are involved in bulk payment solutions. A bulk payment solution is really convenient for payment aggregators.
Let’s dive straight into it
What is a Bulk Payment?
A bulk payment is a banking system where a payer can make payments to groups of individuals such as salary payment, dividends, and direct debits in real-time at the click of a button.
The transaction will appear on your bank statement as a one-time debit for the total amount of the payment. For a bulk payment, there are different ways through which one can send money:
- Bank transfers (ACH)
- Paypal or other financial institutions
- Credit & debit card payments (mostly for refunds)
To initiate a bulk transfer, you will need a tool that enables you to send a large number of payments at once. This can be accomplished using software such as an API, file importer, or file exchange gateway. The majority of banks provide these platforms. But this can be difficult to obtain and many devices have limitations. Alternatively, you may enter into a partnership with a company that specializes in bulk payments.
You can initiate with a PayPal account as they provide a bulk payments service with their own API and file importer to make the process easier.
Discrepancy Between a Bulk List and a Bulk Payment
A bulk list is a predefined list of payees or credit accounts that you want to pay from a single debit account. Bulk payments can not be done without a bulk list.
Bulk payment is created from a bulk list. It is a payment to several payees from a single debit account. This allows you to make multiple individual sales against a single entity in real-time and enables retailers to pay off a customer’s balance in bulk. There are two kinds of the bulk list and bulk payment:
Standard Domestic Bulk Payment
In such a type of transaction, merchants can make standard domestic payments to multiple recipients from a single debit account. There are different types of standard domestic bulk payments:
- Immediate Bulk Payments (IBULK)
- Next-Day Bulk Payments (NBULK)
- Future Dated Bulk Payments (FBULK)
Bulk Inter Account Transfer (IAT)
Through this type of transaction you can transfer funds from a single debit account to multiple credit accounts. It is used for transferring funds in foreign currency between the accounts you have registered. This method is not only faster but more reliable and secure than other methods. It is handy for financial activities as salary payment, dividends, contractors, freelancers, direct debuts, and contests.
Advantages of A Bulk Payment
Bulk payments are the fast & reliable way to send money to multiple people. Payments happen at the push of a button after putting in the bank details of individuals.
Costs increase when you are processing items one by one, but bulk payments will cost you less than individual payments. It also cost less when payment is done in batches. This makes it worthwhile because you will pay your employees the same amount at the same time each month.
Companies can schedule payments on a specific date and time. After approval of payment, it will be released to the recipients on the due date.
Sophisticated security protocols are vital for advanced bulk payment solutions. It includes Secured Sockets Layer (SSL) technology which ensures that data is encrypted as soon as it is submitted.
Moreover, consistency itself is a key factor in security. Paying the same amount to the same people makes it easier to catch mistakes and discrepancies. This is an excellent way to detect fraud. As well during this pandemic period it assures of contactless payment solutions to prevent from getting infected.
Bulk payment software saves hours of individual sales calculations which simplify operations and streamlines finances. Bulk payments can save money, time, energy, and unnecessary worries.
Such mobile payment solutions offer better ease of use and aids in the administration of your business which allows you to focus on real day-to-day business. Besides, Employees also benefit because they are assured that their payments are based on effective and secure protocols therefore they focus on what they are passionate about while helping the organization grow.
The Future of Bulk Financial Services
The evaluation of the market and technology put this payment method at the forefront of the business. Payment requirements for large-scale businesses are complex because they require large amounts of money to be collected and remitted.
For example, Uber and Airbnb collect money from thousands of people every day and then they have to send it to the host. Bulk payment software is the best solution that resolves such issues. With the advancement of technology, money can be sent to the payers instantly which in turn affected payees’ expectations to get paid as quickly as possible.
An increasing number of people are working as independent contractors who require more frequent payments therefore more and more businesses and payment aggregators need to increase bulk payments. A bulk payment solution is a viable option for the same. This is a convenient and best solution that works for your company.