Top Five Reasons Why Using EFT Automation for Your Alcohol Payments is the Best Choice

Alcohol invoice payments can be confusing depending on the type of alcohol, the location of the business, and the state’s regulatory guidelines for compliance regarding payment terms. There are several common alcohol invoice payment methods, but one that stands out is automated electronic funds transfer (EFT) for multiple reasons. This blog will cover five benefits of using automated EFT for alcohol payments and how they can position businesses for operational success.

What are the Common Alcohol Invoice Payment Terms?

There are two main categories of alcohol invoice payments:

·?????? Term payments: Payment made by a specific date after delivery of alcohol products (e.g. 10, 15, or 30-day terms)

·?????? Cash on delivery (COD): Payment in full upon delivery of the alcohol products

State regulations dictate the timing of alcohol invoice payments, and they may differ for beer, wine, or spirit purchases. For example, in South Dakota, alcohol businesses must pay COD for beer but have up to 30 days to pay for wine and spirits. While COD stands for ‘cash on delivery,’ other forms of payment are also accepted at the time of delivery like checks, EFT, or money orders.

Five Reasons to Use EFT Automation for Both Term and COD Alcohol Invoice Payments:

1)???? Eliminate Cash and Checks

COD is used in most states, with 33 requiring payment on delivery for at least one category of alcohol. With cash, the business must have the full amount on hand to fulfill the payment obligation, leaving it vulnerable to theft or short payment if it does not have enough to satisfy the payment amount. Plus, a person authorized to pull cash from the safe may need to be present or at the very least leave the payment in the hands of employees present during delivery.

Checks present similar issues because there needs to be an authorized employee present to write the check or the completed check must be left behind with an employee who will be present at the time of delivery. Checks also leave owners and operators susceptible to check fraud, which is a prominent problem for small and medium-sized businesses (SMBs). Roughly 86% of SMBs spent at least one hour addressing fraud issues in 2024, surpassing the 75% rate among general consumers.

Automated EFT payments eliminate these problems by processing automatically on the day payment is due without the need for counting cash, writing checks, or scheduling an EFT payment. COD deliveries are faster, and payment for term deliveries handled effortlessly.

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