A postal payment is a type of offline payment solution that enables payments to be transferred and completed through a post office or other postal services facility. These types of payment processing solutions are available for companies of all sizes dependent upon their location, and enable companies to offer customers a method of payment for goods or services through the post.
Effective postal payment solutions
Postal payments are a popular type of offline payment solution as they enable individuals to conduct payments in a safe and secure method. Individuals and companies that wish to provide their customers with postal payments are advised to consult with a professional consultancy to be aware of the benefits and obligations of using this method.
The following are the steps that need to be completed in order to conduct a postal payment transaction:
- The customer pays the amount for the goods or services to the post office in return for a postal order
- A postal order is a type of 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
Postal payments generally take a certain number of days to process, depending upon the location of the payer, payee and postal system. Typically the post office will charge a fee for issuing a postal order; however the amount is usually very low but depends on the jurisdiction.