By offering your customers more ways to pay their bills, you may see an increase in on-time payments. That’s because consumers want more options and to pay their bills in the way that is most convenient for them. We know you want what’s best for your customers as well as your company, which is why we offer a variety of payment types so that you can choose the best options for your business.

So what’s the difference between a payment type and a payment channel?

Mobile payment jargon can be a little tricky. Two industry terms that are commonly confused are payments channels and payment types.

A payment channel is the platform on which a consumer can make a payment. These include online, mobile, on the phone, through a CSR, or by eBill.

A payment type is the method of payment that a customer uses to pay their bill. To the customer, card payments (whether they use credit, debit or ATM) are similar customer experiences. This distinction is more important to you as the lender and to your payments processor.

Learn more about payment types:

  • Credit – Credit refers to when a customer uses their credit card, which is tied to a line of credit, to make a payment.  In recent years there has been an increase of customers using this payment type, especially rewards credit cards where customers get cash back or points when they use their credit card. It’s important to consider that these cards are more expensive to process, which drives up payment processing costs.
  • Debit (or offline debit) – Debit refers to a card with a Visa or Mastercard logo that is tied to a customer’s bank account. The payment is processed through the Visa or Mastercard network, but the funds are deducted from the customer’s bank account.
  • ATM – ATM refers to when a customer uses a card tied to their bank account to make a bill payment similar to a debit payment, but the card does not need a Visa or Mastercard logo. Instead, it can be an ATM card issued by their bank.  The payment is processed through the ATM networks, such as STAR, NYCE, PULSE, and Accel Exchange. The customer’s payment experience making an ATM transaction is the same as a making a debit transaction. The difference is in who processes the payment and the costs associated with processing the payment.
  • ACH – An ACH is an electronic check. When using ACH, funds are deducted directly from a customer’s checking or savings account. 
  • Cash payments – Cash payments refers to in-person payments made with cash. This payment option may be the cash management preference of the customer or the last resort for customers who have bounced too many checks and need to make a payment immediately to avoid service disruption.

To learn more, visit https://payments.westernunion.com/products-and-services/bill-payment.

Cash payment options provided by Western Union Money Transfer® services. Electronic payment services provided by Speedpay, Inc.