For some time now, transfer payments have become the preferred disbursement method for many businesses in Nigeria. This form of payment has meant a revolution in the financial area. And even though it is still common to pay in cash, the truth is that immediate bank transfers seem to be stealing the first place… Stay! We want to explain all the benefits and advantages that you can obtain when making transfer payments, as well as the inconveniences that you may have if it is done incorrectly.

What is a transfer payment?

 

In short, a bank transfer is a form of payment that you use to buy a certain product or service electronically. In effect, it is ordering your bank to take part of the funds you have in the bank account to transfer them to another account, regardless of whether it belongs to a natural or legal person.

This service, little by little, became one of the most used in Nigeria. It’s no coincidence! It offers you many more advantages than you can imagine; and today, we will mention a few. So, take note and move on to the life of electronic commerce.

 

Advantages of payment by bank transfer

 

1. Remote payments

 

One of the most important advantages of this service is remote payments. In this case, we can talk about a very practical means if you want to make a purchase far from the place of origin of the product. In other words, it does not matter if you are in Tibet and want to buy an item in Ikorodu, Lagos, with a transfer payment you will achieve it!

2. Reliability and safety

 

People who still do not use this means of payment usually argue that it is not safe, that at any time they can fall into fraud. Even though there are platforms where it is not reliable to make a bank transaction, more than 98% of transfer payments are legitimate and reliable.

It should be noted that the security measures that the banks have provided to the means of payment by transfer are not minor: to make a secure payment, the banks will ask you for a classification code, a dynamic key, or any type of instrument that allows them to make sure that you are the one making the payment. On the other hand, they will allow you to set the limits of money that you can transfer or pay online, further reducing the chances of theft or fraud.

 

3. Speed

 

We arrived at our best good news! Before, most Nigerians complained that the transfer payment service was slow, especially if it was made from one bank to another; however, that was in the past.

Have you heard of instant bank transfers? It is a relatively recent service that has changed the way of seeing payments by transfer… As its name indicates, the immediate transfer implies that when making a payment, regardless of where in the world, the bank account, or the financial institution, this should arrive in less than 20 seconds. It’s quite a record!

Now, this service could be taken as something additional; that is, you must pay a commission. But don’t worry, it’s not much. Generally, less than #100 is charged on top of the standard rate of the transfer you make, however, you will obtain greater benefits. Think about it…

Disadvantages and drawbacks of transfer payment in Nigeria

 

1. Does not give room for mistakes

 

We must admit it, more than once we have made the big mistake of putting a number or the value of the money to send wrong. What does this imply? Well, basically that the transfer payment is not successful.

This implies two things: if the error was when entering the recipient’s data, then the payment you want will never be made, or the money is transferred to an external account. On the other hand, if the error was made when entering the amount of money to be transferred, you must deal directly with the person or entity to which you made the payment since they will be the only ones who can return the money that you sent too much

2. Probable Bank Network Fluctuation 

Perhaps this is one of the advantages that is least manifested when making transfer payments. Of course, who in the XXI century is not going to have the Internet? However, sometimes, banks networks can be shiity.  At this point, you might execute a transfer and it takes longer than usual to reflect. Sometimes, it might not go through at all and you have to wait until the network is fully restored.

As you can see, transfer payments are beneficial, especially with the new modality of immediate bank transfers. Do not forget to ask your bank what services it has for you! And do not hesitate to ask if something is not clear to you. Electronic transfer is our present.