We live in an age where every consumer demands instant gratification or, at the very least, as quickly as possible. Next-day delivery isn’t enough anymore, and many of us now expect to see our items arrive on the very same day that we order them.
Logistics will always play a role in the movement of physical goods, but when it comes to money, there are fewer reasons why payments shouldn’t arrive instantly. Merchants expect to see funds in their accounts immediately, and that principle should also apply to consumers.
The Need for Speed
It’s reasonable to accept that a seller wants to see money in their account before they release any goods or supply services. The risk of not having the payment confirmed makes them reluctant to act, and in the fast-moving digital world, it delays the system.
Buyers, however, are not always treated the same. If goods are not as described, damaged, or considered unsatisfactory for any other reason, they first need to be returned. The refund process will begin, but buyers will often have to wait for their funds, and many consider this unacceptable.
Holding Onto Funds
A good example of the imbalance between buyers and sellers can be found in the online casino industry. Operators will list a series of funding methods, and in the majority of cases, all deposits are instant. Players cannot head to the gaming rooms without cleared funds, so there is an obvious need for immediate payments.
When it comes time to make a withdrawal, things aren’t so swift. Many casino operators state that it may take up to 48 hours for the money to hit their customers’ accounts. In the case of some methods, such as bank transfers and cryptocurrency, the wait could be even longer.
Fortunately, the casino industry has worked hard to address this, and Casino.org finds the fastest payouts via some thorough research. This is a crowded industry, and with so much competition, operators have to work much harder to gain a customer base. One way in which they can do this is through faster payments. It’s an issue that needs addressing in the casino sector, while other industries have had to work hard to even the balance between payments and withdrawals.
How Long is Unacceptable?
There is a key question that consumers will ask if their refunds don’t arrive on time, particularly in the case of cross-border payments. Should it really take this long, or is the retailer simply holding on to my money? While the funds remain in someone else’s account, they could be earning interest when you feel it should be back in your pocket.
It’s a reasonable stance to take, but it should be considered in the context of those refunds and what is involved in a single transaction.
The Technology Behind Payment Systems
A significant number of different technologies are used to process a single digital payment. Artificial intelligence is heavily involved with machine learning algorithms in place to monitor spending patterns and prevent fraud. Near-field communication (NFC) is a system that allows two machines to talk to and cooperate with each other. So, when you tap your smartphone onto the retailer’s card reader, that’s NFC in action.
If you’re using a card instead of your phone, magnetic secure transmission is the key to making a successful payment. MST ensures that consumers can pay for their goods or services either through a magnetic stripe on their card or via a more traditional chip-and-pin system.
It’s also worth considering that there are five stages to a digital payment. It begins with initiation when the customer selects their payment method. Next is authorization, when the payment processor seeks approval from the customer’s bank or digital wallet. The transaction is then processed before it is settled, and the transfer of funds is complete. Finally, there is confirmation wherein both parties receive notice that the payment has been completed. When we consider how many steps are involved from start to finish, it seems incredible that it’s all over in the blink of an eye.
New technology has undoubtedly been able to speed up the payment process. While cash remains an instant transaction, online transfers have dispensed with the need to carry check books.
Before the rise of the internet, buying a product via mail order involved a lengthy wait. The retailer received the order by post, and if a cheque was included, it would need around three days to clear before the product could be safely sent.
Leaving a debit or credit card number marginally speeded up proceedings, but these were carried out at a snail’s pace when compared to today. The system may not be perfect, but it’s come a long way in thirty years, and it backs up the need for speed in today’s fast-moving society.
