No matter the size of your business, a strong payment processing strategy is essential for longevity and strong employee/customer relationships. Many small businesses fail because they’re unable to meet their monthly revenue goals due to a lack of knowledge when it comes to payment processing and maintaining strong B2B relationships.
Although optimizing your internal payment systems may seem like a need right now, it’s wise to hire an expert during times of uncertainty. At Richmond Financial Services, I provide expert payment processing advice that helps you enjoy perpetual savings and gain control of your date. Visit my website or call 617-843-5700 to learn more. If you’re ready to optimize your internal payments system, follow these tips.
Stay On Top of Fraudulent Charges
Chargebacks, or the return of money to the customer on a transaction, are detrimental to small business owners if they happen often. The seller loses about $3.75 for every $1 lost in fraud due to situations like increased fees, expensive overhead and other factors. By 2023 the average single chargeback is expected to cost $190.
Focus on Accounts Payable
Accounts payable is usually a back-end function, but many CEOs are focused on improving AP systems to give themselves an upper hand against the competition. Some businesses are even extending payables as long as possible to help increase the free flow of cash, according to this report from Deloitte. However, this may not be the strategy for you because delaying payments can cause supplier issues, which trickle down into slower delivery times and impact customer service.
Some accounts-payable teams collaborate with senior management to work on boosting capital culture throughout the company. This is usually successful if the team is on the same page as optimizing payables to make room for capital growth.
Understand the Different Payment Processing Systems
There are several types of payment processing systems, including payment aggregators and dedicated payment processes. Dedicated payment aggregators are large businesses that are hired to manage the portfolio of many companies through PayPal, Venmo, and more.
Dedicated payment processors fit the needs of individual merchants that allow businesses to use their own merchant accounts to process transactions. If you want to work with a payment processing system, it can be pricy for young people who want to start a company or have a tight budget.
Before you make any new business moves, be sure to sit with your team and digest what option is right for you based on your current situation.
