Non-Cash Payment Tools: Types and Benefits You Need to Know

Non-Cash Payment Tools: Types and Benefits You Need to Know

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With the rapid advancement of technology, business transactions have become easier and faster. If in the past transactions required face-to-face interaction, now it's different. Customers can pay electronically, one of which is e-money. Well, e-money is part of non-cash payment tools.

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The presence of non-cash payment tools does indeed make business more vibrant. As evidence, in 2019, Bank Indonesia recorded transactions with these tools reaching Rp128 trillion. This increased fivefold from 2014, which was only Rp3.3 trillion.

So, what are included in non-cash payment tools? Find out more in the article below.

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Types of Non-Cash Payment Tools

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Source: freepik.com

There are three types included in non-cash payment tools:

1. Paper Types

• Check
  A check is a non-cash payment tool in the form of an order letter addressed to the bank. This letter contains the account owner's name or another name designated by the check giver. Then, the bank will process it according to the name and the specified amount.
• Giro
  Broadly speaking, a giro is similar to a check, which is an order letter to the bank. However, the letter is not for cashing funds but for transferring funds from one customer's account to another.
• Debit Note
  Generally, a debit note is a letter issued by a bank to collect a customer's debt through clearing. This note is commonly used for inter-office transactions.
• Credit Note
  A credit note is a letter issued by a bank to transfer or send non-cash funds to another customer through clearing.

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2. Card Types

• Credit Card
  One of the non-cash payment tools similar to a debit note but using a card. There is a transaction limit within a certain period. Eventually, at the end of the period, there will be accumulated debt paid from the balance on the account.
• Debit Card
  A non-cash payment tool frequently used by the public is a debit card. Most merchants in Indonesia have provided payments using debit cards. Its usage is simple; you just need to enter the PIN when making transactions.

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3. Electronic Types

• Electronic Money
  Non-cash payment tools currently widely used by Indonesian society are electronic money. It is also known as e-money. Many people use it because it's practical and easy. You can pay according to the specified amount without needing to receive "change."
  Non-cash payment tools currently widely used by Indonesian society are electronic money. It is also known as e-money. Many people use it because it's practical and easy. You can pay according to the specified amount without needing to receive "change."
• Card
  Although called electronic, it doesn't mean that payment tools don't use physical products. In electronic money, some use cards. Its function is to carry out payment transactions ranging from paying train tickets, parking fees, to purchasing merchandise.
• Server
  Besides using cards, some use servers to carry out payment transactions. In this case, it's an e-wallet. You just need to download the available application from the bank's service to make payments.

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Benefits of Non-Cash Payment Tools

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There are several benefits of non-cash payment tools that you need to know:

1. Transactions Can Be Done Anytime and Anywhere
   One reason why many people make transactions with non-cash payment tools is that transactions can be done anywhere and anytime. You can do it from home, office, or place of business. Regarding time, you can do it anytime, whether it's morning, noon, afternoon, or evening.
2. Easy Expense Management
   The second benefit is that you can manage expenses easily. With the use of electronic money, you can top up the balance according to your needs. For e-wallet users, all transactions can be seen because they are recorded in the expense history.
3. Practical and Efficient
   The third benefit is that the use of non-cash payment tools can be said to be practical and efficient. You don't need to bother carrying cash because all transactions can be done only with a card, ensuring security.
4. Guaranteed Security
   This is a fairly important reason why many people prefer cashless over cash payments. Security is guaranteed. All transactions will be recorded neatly, in detail. Moreover, the transaction process is relatively faster and easier.
5. Security systems can be seen when making transactions. There's a PIN or password that must be entered before confirming the transaction. If incorrect, the transaction will not occur.
6. Obtain Many Promotions and Discounts
   Another benefit that can be obtained from using these payment tools is the presence of promotions and discounts. This will be very helpful for credit/debit card and electronic money users. The presence of promotions and discounts will save expenses.

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Once you understand the types and benefits of non-cash payment tools, you can implement them in your business. To ensure business growth, integrate with digital financial services. Therefore, make sure your business accepts bank transfer payment methods by activating virtual accounts with Brick. Provide various payment methods and receive automatic notifications.