Any business that is running to some degree deals with payment. Whether it is issuing or receiving payment, the smooth movement of money is critical to the success of a business. From small businesses with ten transactions a day to large enterprises with millions of dollars flowing through their ledgers, businesses of any size can benefit from effective payment operations. We have seen how powerful a robust payment operations solution can be with the Modern Treasury demo. If you are evaluating the payment operations of your business, here are some important things to consider.
Is your current payment system secure?
The business environment is rapidly changing, and new threats are constantly emerging that can disrupt operations. Having a reliable and secure payment processing system in place is critical for protecting your business against these threats. Fortunately, most reputable payment processors offer sophisticated security features such as encryption, tokenization, and PCI compliance to ensure that your payments are protected. However, remember that data security does not stop when the payment is completed. Financial data and customer information must be stored securely to prevent unauthorized access and reduce the risk of data breaches.
Are you meeting the needs of your customers?
Depending on the nature of your business, you will need to accept different types of payments from your customers. For example, if you run a restaurant, you may need to accept credit card payments, gift cards, and checks. If you run an online retail store, you may need to provide the option to pay via bank transfer, credit card, and e-wallets. By understanding your customers’ preferences for payment methods, you will be able to provide an optimal customer experience. That said, the more payment methods you accept, the more complex your payment processing records may become. Keeping track of all these transactions may pose a significant challenge.
How can you improve your payment structure?
To successfully manage operations and reduce payment processing costs, you need to be able to streamline your systems and processes. You should evaluate your payment structure and identify areas for improvement—such as automating manual processes and eliminating duplicate data entries. For instance, if your billing department spends a significant amount of time manually entering payment information into a spreadsheet template, you should consider implementing a more efficient solution like electronic billing software. You should also look for ways to streamline other payment-related processes such as customer service and invoicing to reduce operating expenses and boost productivity.
What are the associated transaction fees?
High transaction fees take a significant cut out of your profits while low transaction fees help you keep your prices competitive and provide more value to your customers. Therefore, you should conduct a comprehensive review of your transaction costs and compare rates and features from different providers. The pricing structure of your payment processor should be transparent and scaled to match your business requirements. Ideally, you should have access to a sales advisor who can furnish you with a tailored quote for your unique use case. This will ensure that you get the best possible value from your payment processing solution.
Can your payment infrastructure handle your future needs?
The growth of your business will have a significant impact on your payment processing needs. As you expand operations across new territories or launch new products, you will likely need to add new payment methods to your repertoire. This may include offering recurring payments or online cash-back credits. Before you implement any given payment operations program, you should assess if it can scale along with your future needs and is flexible enough to accommodate any changes that may arise. This will save you from having to switch payment platforms halfway down the road, which disrupts business operations and causes you to lose momentum.
Are you making the most of novel technology?
There are many options available when it comes to managing and processing payments. Businesses can easily find third-party service providers to handle their day-to-day processing activities. However, not all payment processing providers are the same. Some of them offer generalized services while others implement the latest technologies such as blockchain to offer transparency and security. To maximize operational efficiency and reduce costs, you should look for a payment processor that offers easy integration, accepts a wide variety of payments, and provides a full view of the payment process from payment initiation to reconciliation and ledgers.
What about cryptocurrencies?
While the crypto market is still in its infancy, many experts believe that it has the potential to disrupt traditional payment systems in much the same way as blockchain has disrupted the financial services industry. Some premiere payment operations providers can work with custom currencies such as cryptocurrencies or even your own stablecoin. By partnering with a payment provider that has the knowledge and expertise needed to manage complex payment operations solutions, you can stay ahead of the curve, expand your market, and benefit from the changing payment landscape.
Every business wants to receive money—and lots of it. A strong payment operations provider can be the difference between a streamlined and efficient payment process and a frustrating and time-consuming pain point. By thoroughly evaluating your current and future needs and doing your research on the available options, you can choose the right payment partner for your business.