Local governments struggle with managing many financial tasks, like collecting taxes, paying grants etc. Usually, these jobs are done manually, such as accepting payments in person, which takes a lot of time and is not very efficient. Fortunately, the emergence of digital payment solutions presents a more efficient and user-friendly alternative. OnlineCheckWriter.com – Powered by Zil Money transform how local governments manage their finances, making everything quicker, safer, and more efficient.
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What Are Digital Payments?
Digital payments involve the exchange of funds through digital or online channels, without any physical cash being involved. Digital payments are also known as electronic payments. To transfer money, both payer and payee can use any digital device like a computer, mobile phone etc.
Different Types of Digital Payments
- Card Payments
- ACH/Direct Deposit
- Wire transfer
- eChecks
Card Payments
These are cashless payments where customers have to pay using either debit or credit card. Debit and credit cards have surpassed cash in popularity.
ACH
ACH payments involve transferring funds through the Automated Clearing House Network. There are two types of ACH transactions, in ACH credit funds are deposited into bank accounts, and in ACH debit funds are pulled from bank accounts.
According to NACHA in the second quarter of 2024 there were 8.3 billion ACH transactions made. This shows a 6.3% rise compared to the same quarter in 2023.
Wire Transfer
Wire transfer involves the electronic transfer of funds between individuals or entities. There are two types of wire transfers: domestic and international. Domestic wire transfers are processed within the same day. While international wire transfers take 1 to 5 business days depending on the destination country.
The cost of wire transfers can vary greatly, from $0 to $50, based on the method and destination of the money. For domestic transfers, fees usually fall between $0 and $35, while international transfers typically cost between $35 and $50.
eChecks
eChecks are digital versions of paper checks. It contains the same information as paper checks. The only difference is that fund is withdrawn electronically from the payer account and transferred to the checking account of recipient.
Why Local Government Should Offer Online Payments?
Local governments often have to collect property taxes, penalties for breaking rules, and charges for getting permits and licenses. If they don’t have an online system doing these things manually can lead to holdups and inefficiencies.
Modern payments also enable faster transactions, making sure that money is quickly gathered and documented, which enhances the flow of cash and the handling of finances. Additionally, providing options for online payments promotes more openness and responsibility, since all dealings are automatically monitored and readily available for review.
Digital payment solutions offer a great way for governments to boost their revenue collection by simplifying the process for citizens to pay fines, taxes, and fees. For instance, when a fine is issued for a code violation, individuals can pay it online right away, which decreases the chances of non-payment. Additionally, the collection of taxes and fees becomes easier, ensuring that the government secures the necessary funds to function efficiently.
Setting Up a Digital Payment Solution with The Cloud-Based Platform
To begin, local governments can sign up for a free trial or ask for a demo to explore how OnlineCheckWriter.com – Powered by Zil Money can improve their payment systems. With its easy-to-use interface and wide range of features, it’s a great option for any government looking to update its financial processes.
Flexible Payment Options for Various Needs
Government bodies have to oversee various financial operations. They have to make payments to suppliers and service providers, as well as distribute money for public initiatives. OnlineCheckWriter.com – Powered by Zil Money offers flexible payment solutions designed to meet these varied requirements. For instance, the platform enables government entities to issue electronic checks, which can be dispatched through email or text messages.
ACH and Wire Transfer
The platform also facilitates wire transfers for high-value transactions, guaranteeing the safe exchange of funds between banks. The sender can initiate it by providing the recipient’s name, bank routing, account number, amount, and name. The software supports both domestic and international wire transfers. Domestic wire transfer usually gets processed within 24 hours.
ACH payments through the cloud-based platform offer the flexibility of both one-time and recurring payments at an affordable cost. ACH payments allow local governments to gather taxes, fees, and fines online.
On-Demand Check Printing
OnlineCheckWriter.com – Powered by Zil Money allows users to print checks on demand with any regular printer and blank check paper. Government agencies can print checks right when they need them, cutting down on the use of pre-printed checks.
Additionally, using blank check paper can help agencies save up to 80% on check printing expenses. This is helpful for government agencies to stick to tight budgets while still meeting their financial responsibilities effectively.
Moreover, government bodies can benefit from the service’s capability to process payments with credit cards, even when the recipient does not directly accept them. This capability is especially beneficial for government bodies aiming to optimize their cash flow and accrue credit card rewards on their spending.
Payment Links
OnlineCheckWriter.com – Powered by Zil Money lets you create custom payment links that you can easily share with clients. The links can be sent through email or SMS. When the payer clicks the link, they go to a safe payment page. The payer can finish the payment using their credit card. The government can easily collect taxes and fees using these secure links.
The platform’s API provides local governments with a strong tool to improve their financial operations. By connecting this API to their current systems, governments can automate many payment tasks, including tax collection, and fee processing.
In this tech focussed world adopting online payment solutions is essential for local government. Embracing modern solutions helps them to deliver better services to citizens.
