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What are Push Payments?
As the payment industry continues to become more complex, the term payment itself has evolved. In this new landscape of the payment industry, push payments (aka buyer-initiated payments or straight-through processing) have started to gain popularity over their more well-known friend, pull payments.
But what exactly is a push payment?
With push payments, the buyer receives and approves the invoice and submits the payment just as with a pull payment. However, with a push payment the transaction processes automatically and the funds are pushed directly into the vender’s account. ACH, wire payments and direct deposit are examples of push payments. Because there are lower transaction fees and an easier reconciliation process, push payments are often leveraged to convince suppliers to accept credit card payments.
Don’t get too excited, there are still plenty of advantages to using pull payments. And in order to make educated decisions on which payment method to use and when to use it, you need to fully understand the differences, advantages and disadvantages to each.
Luckily, we have a white paper on that very topic that details the ins and outs of push payments, what the advantages are and when to use them. Download our white paper, The Ins and Outs of Push Payments now!