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What is the difference between a bank transfer, Osko payment and PayID? All are forms of payment method. A bank transfer allows businesses to transfer money to and from a bank account using a BSB and account number. Whereas PayID allows you to use your ABN, mobile number or email address to transfer money. Osko is a near real-time payment service that allows you to send money almost instantly using either a bank account number and BSB or PayID if both bank accounts are Osko enabled.
You may be asking which one is best for your business. While it is a personal preference, here’s a breakdown of each payment type and how they are used in Australia.
What is a bank transfer?
A bank transfer is a payment method that allows consumers and business owners to transfer money to and from a bank account. As a business owner, you can use bank transfers to move around funds, accept payments from a customer, pay GST and pay suppliers. If you use Square for your business, there are several types of transfers available.
Standard next day transfer
When you activate your Square Point of Sale account, link a bank account and start accepting payments with the free automatic transfers option, your funds will automatically send each evening—including Friday through Sunday—and will arrive in your linked bank account the next day.
Instant transfer
If instant transfers are available on your account, you can send funds to your linked, external bank account 24 hours a day, seven days a week, for a 1.5% fee per transfer. These transfers can be as little as $5 and transfers of up to $5,000 can be sent. Instant transfers can be made as soon as you make a sale. This means that you can get immediate access to your funds.
Custom close of day
Custom close of day transfers are also available for free per transfer, COD transfers are available to automatically transfer your funds at close of day on an automated schedule you choose.
Manual transfers
By default, your funds will be transferred to your bank account every night, including weekends. Instead of automatic transfers, you can select manual transfers to choose when to transfer your money. Your funds will be available in your Square balance and you can decide when to manually transfer them to your linked bank account. Your funds will then arrive in your bank account the next day—at no extra cost.
Custom close of day
If your business has unique hours, you can customise the time you’d like transactions grouped for automatic transfer. This time is called your close of day. Setting a close of day time ensures you’ll receive a single transfer for a full day of payment activity – making bookkeeping a breeze.
What is an Osko payment?
Osko is a service built on top of the New Payments Platform. The New Payments Platform is a service that allows for instant account-to-account transfers and makes moving money between accounts at different banks quicker and easier.
Osko payments is a secure payment service backed by BPAY which enables you to send and receive almost instant peer-to-peer payments. Designed to bring faster and more convenient bank transfers to Aussies, Okso provides 24/7 bank transfers in under one minute, and it. What makes it even easier is that Osko works off your current online banking app, so you don’t need to download any new apps or services.
What is Pay ID?
PayID allows you to use a mobile number, email address ABN or Organisation Identifier to receive payments. A method that is again common amongst peers. You can register your PayID to your nominated bank account and have multiple PayIDs linked to different accounts. PayID also allows you to receive payments into your business bank account using your mobile number or ABN.
This article is for informational purposes only and does not constitute professional advice. For specific advice applicable to your business, please contact a professional.
