Advantages of ECS
1. Handle High Volume of Transaction: ECS can handle a large volume of transactions at a time, making it suitable for businesses that have a high volume of transactions which are recurring and regular.
2. Convenient: ECS has eliminated the need for physical checks or cash transactions. Recurring payments are automatically debited from the payer’s account and credited to the payee’s account automatically using the electronic means of funds transfer, making the process convenient and hassle-free.
3. Automation: ECS operates on the pre-established framework, ensuring that payments are made on time without manual intervention. This is particularly beneficial for all those users who incur regular payments like loan EMIs, insurance premiums, and utility bills.
4. Eliminates Manual Effort: Both payers and payees are benefited from the reduced manual effort. Payers don’t need to remember due dates or write down the cheques, and payees don’t need to process physical paper-based payments. This saves both time and money for both the user and the institutions and hence, is highly preferred.
5. Cost-Effective: ECS is extremely cost-effective as compared to other payment methods, such as issuing and processing physical paperwork, drafts, and cheques. This results in cost savings for both businesses and consumers.