How does prepayment by bank transfer work? Easily explained

Prepayment by bank transfer: What does that mean?

As the name suggests, the prepayment is an advance payment. If you choose this method of payment, you will receive the invoice with the merchant's account details. This usually happens by email, sometimes also by post.
In the invoice you will find the amount due and the required account details. So that your payment can be assigned, you often have to enter the order or customer number as the purpose.
Only when the money has been received by the dealer will the goods be packed and shipped. Payment in advance therefore has several advantages and disadvantages.

With a normal transfer, it usually takes one to two working days for the money to reach the recipient. The dealer's response time can slow the process by another day.
Prepayment by bank transfer has disadvantages not only in terms of speed. Security is also at risk: If you cannot confirm the dealer's seriousness 100 percent, you should not use the prepayment. In the worst-case scenario, it is difficult and difficult to get back money transferred voluntarily.
Payment in advance is generally only worthwhile if you cannot use any other payment option offered. With services such as Sofortüberweisung, you take advantage of independent transfer, but save a lot of effort and time.

In the next practical tip, we will show you other payment methods that you can use to pay safely online.