eNACH is one of the most popular initiatives of NPCI (National Payments Corporation of India), developed to facilitate automated payment collections across India. Upon setting up an eNACH mandate, you can ensure that the funds will be transferred electronically between the banks and customers.
It is an electronic payment mode that allows businesses to automate recurring payments such as insurance premiums, EMIs, utility bills, SIPs and others. It helps both customers as well as businesses to support easy transactions. For better insights, let’s explore the benefits of eNACH mandate over other payment options:
1. Security & Reliability
eNACH is considered the most reliable and secure payment solution for reducing the scope of errors and risk of fraud, which are common problems with manual methods of processing payments.
The transactions will be processed electronically, which will ensure security and accuracy. You won’t have to remind your customers to make recurring payments every month, as the amount will be debited automatically through secure gateways.
2. Enhanced Convenience
eNACH helps customers and businesses with utmost convenience. Customers will be able to set up recurring payments for services and goods. It saves them time, and they miss out on the risk of skipping the due date.
On the other hand, businesses will also be able to collect payments on time without the need for following up with the customers. It ensures an optimal cash flow for businesses of all sizes.
3. Cost-Effectiveness
eNACH registration is considered the cost-effective method of processing payments. Businesses will save a lot on processing or transaction fees, which are higher with traditional modes of accepting payments such as cash, cards or cheques.
The eNACH transactions are completely electronic, which doesn’t need any manual intervention, preventing the need for you to pay the overhead charges. It helps you in managing your business finances efficiently.
4. Automation
One of the best advantages of eNACH is you get to enable automation for processing the payments. Once the customers set up their recurring payments, you don’t have to manually process the transactions anymore. You will be saving your time and boosting efficiency, as your team members can focus on other crucial tasks.
Implementing automation will reduce the risk of errors, which will ensure the payments are correctly processed every time without fail. The customers won’t need to constantly be reminded of the due date, as the debit will be automated.
5. Get A Competitive Advantage
eNACH provides you with the ability to make your business stand out in the crowd of competitors. When you can offer your customers a convenient and secure payment mode, they will rely on you more than that of your competitors.
Such payment flexibility will help you build a positive reputation in the industry, and you will also stay ahead of the curve as far as the digital payments landscape is concerned.
Conclusion
There are limitless benefits of eNACH over the usual payment methods, but its reliability is what has encouraged businesses and customers to adopt it. If you want your business to provide eNACH solutions to the customers, FidyPay can be your one-stop solution to provide you with the dedicated API for it. Try out today!
