A cheque payment consists of cash, often from a company or institution, disbursed to the client. Typically, cheque payments are for the purchase of goods, services or instruments that can be traced back to a payer. This type of payment could be for any merchant who accepts cheques.
Many shops are opting for virtual payment options such as debit and credit cards as the concept of virtual cheques becomes more popular. These virtual cheque payment methods are easy to process and typically incur lower fees.
Disbursements for virtual cheques are made without ever leaving the company’s system, including the sale price or amount. Cheque payments are often sent via e-mail, which is similar to the conventional mode of disbursement for cheques.
Importance of Virtual Cheque Payments
Virtual cheque payments allow companies to disburse funds and payment information via e-mails or the Internet. If a company allows clients to charge a virtual cheque, clients will often send the information digitally in order to avoid the late fees or late payment charges of an actual cheque.
This could result in a substantial saving for companies. Payment accounts can be linked to almost all payment methods through the use of electronic services by disbursing payments through virtual cheques. When the payment amount is reduced to zero, no cheque is issued at all. This method of payment is easy for clients, as they don’t have to send checks, use wire transfers or any other kind of payment method.
The most significant advantage of virtual cheque payments is that they remove or lessen the danger of misplaced or forgotten checks. If a payment is not received, the company has no way of knowing. This usually creates significant financial problems for companies, as some companies pay to cover the bill when an item is returned, as well as the default of the payment account being zero.