Bank transfer7 Nov 2020 09:26
In the UK, 52% of all B2B payments are still done via bank transfer.
The benefits of bank transfer
Most businesses using bank transfer to collect payments, do so for two key reasons:
The lack of transaction fees on smaller payments (larger amounts may require a CHAPS transfer, which includes fees) and The low failure rates on payments.
The lack of transaction fees (other than on large payments) is a huge cost reduction. A credit card transaction, on the other hand, could cost you upwards of 3% of the overall payment. The comparative long-term savings are potentially huge.
The low failure rates are also a clear incentive. Every failed payment is both lost revenue and an added admin cost when rectifying.
The simple answer is more profits for the company.