When a business is just starting out, it’s important to cover all the bases. As a business grows, however, some of these essential tasks end up dragging down the bottom line due to inefficiencies and high costs. You might not think it, but payment processing is one of these areas. The average business spends as much as $20 to issue each check, and many electronic payment methods are also pretty pricey. There’s also the fact that processing payments occupy many hours each week – hours that might be better spent on more important tasks.
This is why payment processing companies can make such an impact. Not only do they save time and money, but they also offer several other benefits. A check service like Checkissuing brings convenience and professionalism to payment processing, whether you’re taking care of payroll or paying vendors.
Read more: Mobile Payment Processing Trends
1. Your business’s reputation will improve
There are many factors that influence a business’s reputation, and many of them have to do with payment processing. One aspect could be the timeliness and accuracy of your payments; another could be the sleek appearance of your business checks. Outsourcing to a payment processing company is a move that can bolster your overall reputation, build trust with vendors, and more. This will have a positive effect both up and down the chain, making your company look savvy and confident.
2. Upgrades and maintenance will be taken care of for you
Given that technology evolves so quickly, payment processing systems that were cutting-edge a few years ago may already need replacing in order to keep up with competitors. Then there’s the cost of maintenance – replacing physical components, updating software, and so on. Between one thing and another, these costs mount up quickly. If you were outsourcing to a payment processing company, though, these expenses wouldn’t be your responsibility anymore.
3. Payments will comply with rigorous security requirements
Every business is motivated to prioritize security because it just makes sense to protect themselves, but that’s not the only reason why they do it – there are also strict laws governing how payments should be processed. Since this information is extremely sensitive, it’s key to protect it at every point while processing payments. To make things even more complicated, there are both state and federal laws to consider. A payment processing company stays on top of relevant legislation to not only reduce security risks but also to keep your payment processing in compliance with the law.
4. It’ll be easier to scale your business
Scaling a business requires every part of the company to progress at roughly the same rate; if one part lags behind, that hampers the overall effort. Payment processing routines are tricky to scale along with the rest of the company, as they require a sudden increase in both supplies and man-hours to keep up with. With outsourcing as part of the strategy, on the other hand, your business’s payment processing can be as agile as you need it to be.
5. You’ll have a decreased risk of fraud
In many cases, fraud is a crime of opportunity. An employee, a vendor, or someone who stole a check from the mail may commit check fraud simply because they gained access to your financial information. It may not be possible to completely eradicate the risk of fraud, but there are plenty of steps to take to mitigate the risk. Because payment processing companies have to uphold their reputations for trustworthiness, they take anti-fraud measures very seriously. Cybersecurity is vigorously maintained, and paper checks have security measures like thermochromic ink to discourage fraud.
6. Cash flows will be more efficient
Understanding cash flow is about more than just knowing where you stand at the end of each month. In order to really leverage your financial data, you should be able to examine cash flow on any given day. Payment processing companies give you improved visibility for all payments, meaning the data you’re working with from day to day is current. This makes it possible to arrive at more informed decisions and ensures that incoming or outgoing payments won’t be accidentally overlooked.
7. Any enterprise can find comprehensive solutions
Each enterprise will have its own needs for a payment processing company to meet – which is exactly what they do best. One business might need a solution that’s HIPAA-compliant, while another just needs a bare-bones check printing service. Whatever the case, a payment processing company will be able to provide any services that are needed.
8. You’ll have access to advanced tools and technology
A big part of making smart business decisions is the ability to access data on the fly. If you’re working from outdated books or last month’s numbers, your decisions won’t be in response to current conditions; they’ll just be educated guesses. Sophisticated technology and advanced software can manage your data, but those take plenty of time and money to maintain. A payment processing company, however, gives you access to these tools as part of their service.
9. Security will be prioritized
If it’s hard to remember to change your password consistently – and not keep it written on a sticky note taped to your computer – how hard would it be to implement just that one safety measure for everyone who’s responsible for processing payments? You get the picture: keeping security tight is tough. Unless you’re talking about a payment processing company, of course; they have strict security protocols that protect both your information and their own reputation.
10. You’ll save money
With over 70% of businesses outsourcing payment processing specifically to reduce costs, it turns out that paying someone to process your payments really is cost-effective. This also frees up multiple hours each week to spend on more important tasks.
Outsourcing payment processing may not seem like the most obvious choice if you want to trim the fat from a business, but this step can actually cut down on costs, improve data visibility, and bring many other benefits as well.