Payment transactions conducted through the post are referred to as postal payments. These transactions are a type of offline payment solutions that enable individuals and companies to conduct money transfers in a safe and secure manner. Postal payments are most popular in making domestic payment transactions, particularly for catalogue payments.
Reasons for Obtaining Postal Payments
Postal orders are considered to be a popular method of conducting payment transactions in a safe, easy and simple – especially in households. Individuals favor postal payments, despite them being offline, as they are an efficient means of paying for goods and services. As an offline payment processing procedure, postal payments enable individuals to benefit from a traditional method of paying as opposed to using the internet to make card payments, for this reason it is more trusted by customers.
The following is a brief outline of how postal payments are conducted:
- The individual simply obtains a postal order from their nearest post office facility
- The value of the postal order will be determined by the amount of cash the individual pays at the post office
- The individual will have to pay the post office the exact amount of money for the good/service and this will then be produced in the form of a post order
- The individual will then post the postal order to the company he/she purchased the goods from
Postal payments have a number of benefits, some of which include:
- Tracking – tracking code is issued to clients by the post office
- Confidentiality – No personal information is sent on a postal order, this ensures high levels of confidentiality and low risk of ID theft or fraud
- Security – Postal payments can only be cashed by the intended receiver, thus ensuring high levels of security