Digital commerce has made transacting quicker for both buyers and merchants. While customers can shop for products, make payments and even get refunds within minutes, merchants are able to update inventories, track sales and ensure speedy checkouts on their website/app.
However, several businesses do not realise that just like digital payments, settlements can be quicker too. Not having to wait for money to reflect in their bank can significantly solve the cash flow issues of many merchants.
While settlements usually have a defined timeline, many payment gateways invariably delay them due to bank holidays or weekends. Paytm Payment Gateway offers a standard T+1 (T is the day of transaction) settlement which means that the amount debited from the buyer’s account is credited to the merchant on the next day without any exception.
However, if merchants are looking for faster and uninterrupted funds, Paytm Payment Gateway’s same-day settlements can be extremely helpful. This article explores the importance and benefits of a same-day settlement payment gateway.
What is a settlement period
The settlement period is the time taken for the payment which is debited from the buyer’s account to reflect in the merchant’s account upon a successful online transaction. It is a significant determiner of the availability of cash flow and capital for merchants.
Even though transactions happen in real-time, settlements often take longer and in some cases, merchants may have to wait for days to receive their money. Most merchants depend on timely settlements for running their business efficiently.
There are several steps and complexities involved in the process of transactions in addition to dependency on external channels. However, a reliable payment gateway offers the choice for a faster settlement period and helps businesses resolve their liquidity issues.
Types of settlements offered by Paytm Payment Gateway
A payment gateway that is responsible for the transfer of money from the buyer’s to the merchant’s account usually determines the settlement period. Payment gateway offers many settlement options that include:
Batch settlements– The transaction amount is collated and settled in batches defined by the merchant. For instance a merchant can ask for bi-monthly settlements on the first and 16th of the month or set a cycle based on their needs.
Real-time settlements– Here, merchants can have the money in their account as soon as the payment is made by the customer. The credit happens in real time and real-time settlements are useful for businesses who are in immediate need of money.
On-demand settlements– With this option merchants can avail instant fund transfers to their bank account based on their demand and through a single click. On demand settlements are offered 24×7, 365 days a year.
T+1 settlements– With T+1 settlements which is Paytm Payment Gateway’s default settlement cycle, funds are transferred on the next day of the transaction. Settlement happens the following day irrespective of weekends or bank holidays.
Same-day settlements
With Paytm Payment Gateway’s same-day settlements, the money is transferred to the merchant on the day the buyer pays for their purchase.
Merchants can choose to transfer the day’s amount cumulatively or go for settlements in pre-decided frequencies throughout the day. Additionally, they have the option of receiving the payment either in their bank account or other destinations including Paytm Wallet, UPI VPA and Virtual Account Number (VAN).
Several industries that deal with multiple vendors and continual inventory restocks, cannot afford a delay in payments and hence are in urgent need of cash. Event-related companies for instance or the hundreds of supermarkets and grocery stores depend on the daily cash flows to keep the stores running. Same-day settlements is a highly dependable solution for these businesses.
How can a same-day settlement payment gateway help your business
Managing cash flows is an unresolved issue for many businesses. One of the primary reasons is the delay in receiving their money after a transaction on their website/app. Even though customers make payments in real time, most payment gateways take much longer to transfer it to the merchant’s account.
A late settlement leads to a delay in the working capital. Not an ideal situation for any business that needs to invest the capital back, pay vendors and restock inventories. Timely settlements can prove to be a crucial factor in smoothly running the business.
Paytm Payment Gateway’s same-day settlements can benefit merchants in more ways than one. Settlements that are offered to merchants on the same day by Paytm work as upfront loans.
Even while the payment gateway processes the payments through multiple channels, the money is parallelly transferred to the merchant without making them wait. As a result, they do not have to worry about holding payments from their vendors or partners.
Payments can be easily tracked by merchants through a dashboard that helps them stay updated with all the transactions in addition to offering business-critical insights. The status can be checked with settlement APIs, dashboards, SFTP/email reports, & notifications.
In case your payment is received from more than one source for a single order, Paytm Payment Gateway reconciles it into a single payment.
Paytm Payment Gateway’s same-day settlements improve the business efficiency by shortening the time as well as the processes involved in receiving the money from the customer. This allows greater control of the business and gives merchants the freedom to make better business decisions.
Conclusion
Timely settlements are crucial to the running of a business. It is, however, important that every business analyzes its need for capital and makes an informed decision on the kind of settlement to opt for. Same-day settlement payment gateway, as discussed in this article has several advantages for businesses of all sizes and scales.
Paytm Payment Gateway also offers many other benefits to merchants including industry-high success rates, PCI-DSS compliance, easy integration, instant activation and more. Hence, switching to a same-day settlement payment gateway can positively impact the growth and expansion of your business.
