If you are a retailer, you’ve likely been faced with adversity when it comes time to collect an initial payment. This is even more likely when you require a debit card, and your customer has chosen a no credit needed option. When you are a customer handing over the reins to your hard-earned funds can be nerve wrecking and scary. Understanding what an initial payment is and why it’s a good idea to pay it via card can alleviate concerns.
What are initial payments?
An initial payment refers to a payment made upfront before the regularly scheduled payments begin. The application of an initial payment can vary. Ensuring you understand the specifications of an initial investment is the first step in a smooth transaction.
Why should an initial payment be made with a card?
Consumer Protection
It is a very common practice when processing payments with a card to verify the name on the card matches what is on the identification. Initiating a transaction with an initial card payment not only safeguards a customer and retail establishment from potential fraud but also provides assurance to a leasing institution regarding customer identity verification.
Preventing Buyer’s Remorse
Customers tend to feel more satisfied with their purchase when they’ve committed to an upfront investment. Leasing merchandise is a financial commitment, and you want to ensure your customer will be happy with their decision throughout the duration of their lease.
Transaction Reporting
Many payment platforms that offer card processing features built in reporting tools. This allows an easy way to streamline purchase tracking, tax management, dispute resolution, and more. Cash payments are typically harder to keep track of and properly report on.
Repayment Confidence
Customers often feel reassured about repayment obligations once they’ve made an initial payment using their card. A savvy consumer will want to take measures to demonstrate assurance in their readiness to honor the terms of their lease agreement.
Your satisfaction is our top priority.
Requiring down payments with a card can come with apprehensions, but ultimately paying the initial payment with a card can offer added security, confidence, convenience, and potential benefits for both the customer and seller involved in a transaction. We pride ourselves on providing a transparent lease to own process from start to finish. If there are ever any questions about our leasing requirements our friendly and knowledgeable staff are always happy to help before and after a lease has been signed.
Learn how Okinus Credit Solutions can help you today!
