If time is money, then you may be surprised to know that you are probably wasting a lot of money in the way you are currently processing your customer’s payments. If you accept credit cards and checks but do not have an automated payment processing system in place, then you are spending time dealing with your cash flow that could be better used to increase or improve business.
It may seem like you are trapped in your current system. However, it is very easy to reduce costs associated with payment processing when you have the right tools.
One thing that businesses owners spend a lot of time on is processing checks. This is one reason why many companies, particularly small companies, do not accept checks anymore. When you take a check, you have to go to the bank and deposit it into your account. The check can take anywhere from 5 to 10 days to be processed particularly if your bank has a problem collecting funds (e.g. insufficient funds). Additionally, if the check bounces, your bank will charge you a NSF fee and it could disrupt your business’ cash flow. However, using an automated payment processing tool can prevent this type of incidents from happening.
An automated payment processing system will electronically deduct the amount owed within 24-48 hours. This reduces the probability of having the check go bad. Additionally, many systems can be linked to a check verification system that can prevent you from taking checks from people who are chronic offenders. The result is, you spend less time handling checks, the money is automatically put into your account, and you don’t have to worry about chasing down and collecting on bad checks. The time you save can be spent building your business and making money.
Another benefit to using an automated payment processing system is you can integrate it with your website. This will allow you to accept payments online by credit card and electronic checks. As long at the buyer has a bank account and knows the routing number and account number, they will be able to transfer money from their account to your to make purchases. The transaction is secure and the Automated Clearing House that processes the check payment will verify the information before processing the check. This reduces the likelihood of fraud as well as makes it easy for you and your customers to do business online.