Mobile payment tokenisation study done by Juniper Research
Europe Paytech

Debunking the Four Myths of Modern Payments

The finance world has been a poster child for innovation. However, with a variety of payment methods evolving from bartering, to metal coins and plastic cards, the current landscape of online transactions has created some confusion for business leaders. 

Brady Harris, CEO of Dwolla believes that the widespread belief of inaccurate information around payments has muddied the waters—causing businesses to implement expensive, lengthy and headache-inducing payment processes. Whether funds are being transferred from a business to a business, from a business to an employee or from a customer to a business, money is always moving.

With over 20 years of experience in the payments industry, Harris is making programmable payments the standard for any industry. Prior to Dwolla, Harris was the President of Payscape, a nationwide Fintech/SaaS provider that offers dynamic payment solutions. 

To help businesses navigate the world of payments in a digital economy, let’s debunk four of the most common myths around online payment methods.  

  1. Digital transactions take 2-3 business days to process

Regardless of if we’re moving money through a debit card, credit card or bank account, we’re all familiar with the processing times of online payments. While transferring funds is as simple as pushing a button for the consumer, it can take a few days for those funds to move to or from our account. 

Traditionally, these delays account for insufficient funds or unauthorized transfers.

Today, consumers are increasingly expecting faster payments and quicker funds transfers. By offering ACH payments, which are electronic, bank-to-bank transactions, businesses don’t have to experience the delays of a standard wait time. With ACH payments, there is no need to wait for approval. Funds moved through the Automated Clearing House Network can be transferred to the appropriate account in a matter of hours, even if it’s 10pm on Saturday or early Christmas morning.  

  1. Online payments have too many security risks

It is often believed that digital payments are at higher risk of security threats, which is easy to believe when we see headlines like “online payment fraud attempts increased by 73 percent” or “over $2.7 billion in cyber-related losses were reported to the FBI in 2018.” Naturally, there are risks any time money is moving, even with paper checks or cash exchanges. 

Risks aren’t tied to online transactions.

But if done correctly, online payments come with relatively low risk. Just last year, the Federal Reserve found that payments fraud “represents only a fraction of 1 percent of the total value or number of payments.” The best payment infrastructures constantly test, assess and improve their security measures. By staying up to date with security practices, businesses are better prepared to avoid potential threats. 

  1. Debit card transactions come with pricey processing fees

While there are non-negotiable fees like the assessment and interchange fees, some wiggle room exists when it comes to processing fees. Card processors charge this as their own markup as the commission they get for each purchase, which is paid by the consumer on each transaction. Combining these fees together can add up quickly and come as quite the surprise during check out. 

Luckily, businesses are helping consumers avoid these types of surprises. Anytime we enter our bank account and routing information to make a payment, we are initiating an ACH transaction. This type of online payment allows a consumer to avoid the fees associated with credit cards and can cost the business pennies to complete. 

  1. Payment solutions are too complex

While it’s true that meeting compliance regulations does require a dollop of patience, the best payment providers offer best practices and resources to help. There are thousands of different laws defining what a payments company can and cannot do, adding an incredible amount of friction for organizations considering an online payment offering.

However, the right programmable payments infrastructure can take all of these complications and simplify them for both the end-users and the employees.


  • Gina is a fintech journalist (BA, MA) who works across broadcast and print. She has written for most national newspapers and started her career in BBC local radio.

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