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How Automated Payment Processing Improves Efficiency & Cash Flow
Automated payment processing is key to streamlining processes, having full control of cash flow, and staying on top of declined or missed payments.
Are you tired of dealing with manual errors and missed payments? Do you want to streamline payment processing operations in your organisation and save time and resources? Look no further than automated payment processing!
In today's digital age, businesses are turning to automated payment systems for payment handling. Not only is it customer-friendly, but it also helps merchants to efficiently manage recurring payments and subscriptions. Sped-up and smooth operations are a lifesaver for any organisation, from large enterprises to small NGOs.
In this article, we explore how automated payment processing can benefit your business, no matter its size or industry. We also take a look at how to implement it into your strategy and reap the benefits right from the start. Let's dive in!
What is Automated Payment Processing?
Automated payment processing refers to the technology and software systems used by organisations to facilitate payment collection and handling. These payment systems generate invoices, accept payments, verify transitions, reconcile accounts and generate reports.
Automated payment processing is especially popular with organisations that offer services or products on a subscription basis. They’re also highly relevant for non-profit organisations that manage recurring donations and membership organisations that regularly withdraw member fees.
These payment systems facilitate payment management and relieve customers of the need to take any action to complete future payments. This leads to improved customer satisfaction and higher retention, as the customer receives a positive experience.
How to set up automatic payments from customers?
There are various ways to set up automatic payments from customers after coming to an agreement. However, the two most popular are:
- Card payments: They are quick and efficient, however, their downside is short expiry dates, which lead to higher churn. In some cases, the expiration date may be three years from the date of registration, in others, just a few months.
- Direct debit: They are relatively easy to set up and tend to be more secure than credit card payments; customers don't have to share sensitive information with sellers or telesales agents. Direct debit mandates lead to higher retention rates and improved customer lifetime value as they require no further action from the customer once they’ve signed the agreement. Waytobill provides seamless local direct debit methods for the Nordics. Find out more about Digital Autogiro.
Are you looking for a way to convert more leads into paying customers via telesales? In some countries, for example, Finland and Sweden, the law requires telesales agents to receive a signed copy of the offer before proceeding with withdrawals. Find out how to get started with digital signing in telesales.
Let's now take a look at all the benefits of automated payment processing.
Benefits of Automated Payment Processing
Automated payment processing has proven to be a great strategy for a variety of organisations, including large enterprises and non-profit organisations. Here are the most important benefits that come with automated payment processing.
Increased speed, efficiency, and accuracy of payments
Manual or just partly automated payment processing often leads to errors and delays, especially when handling hundreds or thousands of monthly payments. Automated payment systems allow for:
- Faster and more accurate payment processing, removing the need for manual data entry, and therefore, reducing the risk of human error which can be costly.
- Improved cash flow: automated payment systems help organisations avoid delays in receiving funds. This dramatically improves cash flow and gives stakeholders and managers peace of mind.
- Easier follow-up on declined or failed payments: reporting and tracking tools offered by automated payment systems give sales teams the necessary information to follow up and address payment failures or declined transactions promptly.
- Well-informed decisions: accurate financial records enable organisations to make informed decisions, backed up by data.
Automated payment processing reduces costs
Apart from far more paperwork involved in manual processing, there are several ways in which automated payment processing can reduce costs:
- Labour savings: data entry and manual payment processing are very time-consuming, generating additional labour costs. Automated payment systems allow organisations to allocate the budget to other critical areas and allow employees to focus on more strategic and value-added activities.
- Fewer errors: errors in data entry or incorrect calculations can be very costly mistakes that additionally delay payments.
- Faster payment processing: automated systems can process payments in real-time or on predetermined schedules, allowing organisations to collect fees or membership payments on time. Timely availability of funds is crucial for organisations that must pay salaries, settle utilities, and pay providers.
- Improved cash flow management: real-time visibility into their cash flow, is a great advantage for businesses. Accurate and up-to-date information about incoming payments allows organisations to better manage finances and plan for future expenses. This information enables companies to minimise borrowing costs and reduce overall financial risks.
Improved security for organisations and customers
Automated payment processing can also greatly improve security for both the merchant and customers:
- Data protection and reduced risk: automated payment systems use advanced encryption and security measures that protect sensitive data. Automated payment processing systems securely store data and make it inaccessible to unauthorised individuals. By offering a secure payment system, businesses can increase customer confidence and satisfaction, leading to increased customer loyalty and repeat business. Additionally, automated payment processing can help businesses comply with security regulations and standards, like the GDPR, an important part of the EU privacy and human rights law. Online payment systems operating in the EU, like Waytobill, are up to date with the latest GRPR requirements.
- Fraud detection: payment systems can detect fraud and prevent fraudulent activities. For example, at Waytobill, we get to know the merchants using our checkout solutions, meaning no fraudulent merchants can use our services. In terms of hack attempts, when operating in the EU, payment systems must follow the GDPR regulations for data privacy, giving access to the data only to authorised staff members. Secure payment systems are also difficult to get through for fraudulent transactions, as for instance, when it comes to Digital Autogiro, customers must securely log in to their BankID account to confirm their identity.
Use automated payment processing for your organisation
Do you have a better understanding of automated payments now? We hope so! As you can see, automated payment processing offers cost savings, improved data accessibility and increased customer satisfaction. Organisations opting for these solutions streamline financial operations and eliminate the need for manual data entry.
Are you ready to revolutionise your organisation's payment processing? Waytobill can help you take care of recurring payments and subscriptions while providing a seamless customer experience.
With Waytobill, you can bid farewell to complicated manual payment processing and welcome automated payments! Our local direct debit methods for Nordic countries, allow organisations to seamlessly take full control of business processes while providing customers with payment methods that they trust and are familiar with. Our payment solutions cater to the needs of merchants from across various industries, taking control of the full payment process.
Are you ready to find out more about our products? Contact us today!