What is a postal payment
A postal payment is a type of payment processing solution that is available for companies of all sizes but dependent on their location, to offer customers a method of payment for goods or services through the post. Postal payments are a popular and safe method of sending payments from a customer to a company and many organizations favor the postal payment method. If you wish to offer postal payment processing as a payment solution to your customers it may be advised that you consult with a professional consultancy to make yourself aware of the benefits and obligations of using this method.
For more information on postal payment processing and to find out how DeltaQuest can assist you, view our Postal Payment Solutions page.
Postal payments explained
A postal payment is normally offered by companies to their customers as a convenient and safe method of paying for goods or services purchased by the consumer. A postal payment can be tracked and cannot be cashed by any other party other than the intended receiver. It also does not include any personal bank details of the sender so there is little risk of ID theft or fraudulent transactions taking place.
A postal payment is in the form of a postal order and is achieved by performing the following steps:
- The customer will pay the amount for the goods or services to the post office in return for a postal order
- A postal order is basically a paper based cheque, valued at the amount the customer paid at the post office
- The postal order will then by posted by the customer to the intended receiver
- on receiving the postal order as payment for the goods or services bought by the customer, the receiving company will take the postal order to their nearest post office to cash
- The cash will then be deposited into the company’s bank account
A postal payment can take a number of days to clear depending on the location of the payer and payee and the efficiency of the post.
Generally the post office will charge a fee for issuing a postal order however the amount is usually very low.
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