This saying may be true in many cases, but there is an exception where you can get all three - integrating your company's payment processing with your route accounting system.
Using a natively integrated payment process with your Route Accounting software can save businesses time and money by improving efficiency, reducing human error, removing manual processes, and providing customers with an enhanced experience by giving them multiple payment options.
While there are many reasons why textile rental operators choose to implement a route accounting system, the billing and accounting components are very high on the list. Extending those capabilities through the Accounts Receivable process to payment processing and payment settlement takes the benefits to another level. In this scenario, transaction data from credit cards, debit cards, and other electronic payments flow automatically into the system when the transaction is approved.
Without this functionality, a business must run external reports and manually enter data into the route accounting system. Not only does this mean duplicate efforts, but also delays in cash flow visibility for managers.
Let's review the different payment options without an Integrated Payment Solution:
Paper Checks: Whether you send invoices by mail or email, checks can create a labor-intensive process in the office. This process includes preparing the deposit, keying the entries by applying checks against specific invoices, then making the deposit. The entire process can take an hour or two per day, depending on how many paper checks are processed.
Processing Credit Card through your Merchant's Portal: For this example, we refer to a process in which either you keep a credit card on file or the customer calls in to pay their invoice. While more advanced than the paper check option, there are still a few areas where the process is not efficient:
- Storing the information: If you are collecting credit cards via a paper form or writing them down, this is not PCI compliant. The correct way would be to store it in your processor's secure portal, but that process creates other manual challenges.
- Double data entry: The most time-consuming part of managing a non-integrated merchant portal is that the person processing payments needs to go to the processor's portal and enter the credit card information, a reference number, and an amount to process the credit card payment. Then they have to exit that portal and go on the route accounting software to mark that invoice as paid. This process is done individually, sometimes using more than one resource. According to a survey conducted recently, textile rental operators following this process spend an average of 2-4 hours a day processing credit cards manually.
- Customers want to control the transaction: The only option they have to control the transaction is to call in and provide payment information over the phone. In this situation, you are receiving credit card information over the phone and storing it in a way that is not secure. That's in addition to the disruption and the reactive nature of receiving those calls randomly throughout the day.
Benefits of Integrated Payment Processing in Route Accounting Software
You may already have figured out that integrating payments with your route accounting offers significant advantages. And you are right. Let's review the primary benefits:
- Improved accuracy and efficiency: posting payments directly into your route accounting software simplifies the process and increases payment efficiency and accuracy in several ways. First, integration reduces the manual entry of transaction data, decreasing the possibility of human error. You can use a batch process to select all invoices ready to be paid and authorize and settle all credit cards and/or ACH payments in a single click. Customers that have implemented Integrated payment solutions see daily time savings from 2-4 hours processing manual credit cards via their processor's portal to approximately 5 minutes with our integrated solution.
- Ease for your customer: returning customers don't have to resubmit their information after the first time they use a payment method. Their preferred payment method can be selected within the software interface, making it much more convenient for customers to pay.
- Labor savings of repetitive tasks: with less manual entry, employees have more time to focus on work that may be more valuable to the company and more interesting to them, potentially leading to greater job satisfaction.
- Flexibility and options for all forms of payment: multiple credit and debit cards, prepaid cards, and ACH are all now options available to customers for recurring payments, and all can be integrated into the route accounting software. With the addition of our Service module, the systems can automatically notify users and customers if a credit card expires soon, making cards-on-file or subscription payments convenient for customers and avoiding disruptions to the revenue you're counting on.
- Reduced card processing costs: payment card networks apply interchange fees to transactions to cover handling, fraud, and bad debt. While fees vary by card and transaction type, corporate and purchasing cards used transactions carry some of the highest interchange fees. However, a payment processing solution that integrates directly with your Route Accounting Software can send more customer data with every transaction, helping you consistently qualify for those lower interchange fees.
- Improved security: A built-in payment processing system offers the advantage of PCI-compliant payment processing and tokenization, which provide a high level of protection for transactions. Tokenization means that data stored in the Route Accounting system is useless to anyone trying to breach a system. And with less need for employees to handle sensitive payment card data, security improves. The secure token is stored in the route accounting database, so nothing in your system can be linked to the payment info, even if your system was compromised.
- Collecting more and better data: Integrating payments processing provides access to real-time data and reports to help companies run more efficiently. Up-to-date reports help an organization manage production, inventory, orders, and cash flow, which helps businesses make better operating decisions.
- The ability for the customer to collect payments on their terms: With Alliant, the integrated payment solution allows options for customers who want to set up "Auto-Pay" and have their credit card or ACH payment information stored securely at the office. At the same time, if the laundry uses the online portal, its customers can store payment information that only they can see and use. This option gives them options and the ability to determine how they want to engage with you for payments.
- Overall improved receivables process and cash flow: users have expressed that with less time processing payments, automation, and batch processing, they have been able to achieve a very clean AR and that saved time can be used to follow up with customers whose credit card is about to expire or managing collections. Using the right combination of route accounting and payment processor, you may see one final benefit: reduced open accounts receivable and improved cash flow.
Summary
Fully integrating your payment processing with your route accounting for your company can help you automate processes, reduce manual steps, improve your customer's experience, and improve cash flow. While rare, there are situations where you can "have it all!"
For more information about Alliant Software or Integrated Payment Processing Solution, please visit us at www.alliantsystems.com
or Click on this link to Book a Demo.