56% of Americans prefer to pay their bills online. This statistic shows the rapid evolution of the payment process.
Cash payments won’t cease any time soon. Even so, businesses that are keen on the future should begin to look for ways to integrate cashless payments with all the other business tools.
Customers find credit card payments and other cashless options convenient and secure. Indeed, even for merchants, online payments introduce a myriad of advantages. Today there’s greater convergence of payment processing software and electronic payments.
The convergence is responsible for the mushrooming payment software companies. The service providers offer different payment options to suit your needs.
Have you been wondering what benefits you can derive from payment processing software? Here we list all the benefits of payment processing software for your business.
Payment Processing Software Saves Time
The value of the U.S. mobile payment market went up to $98.8 billion in the year 2019. Such growth represents hundreds, if not thousands of daily transactions. Each of these transactions needs verification before approval of orders.
The sheer time needed to verify every single transaction manually is enormous. Time-saving has to be the most important benefit of embracing payment processing software.
Your small or medium-sized business doesn’t have to verify every transaction. The time spent entering each of the credit card information into the system would hamper productivity.
Payment processing software helps you save valuable time. Your company can now focus on your core functions. The need to have such payment processing software is to ensure that online transactions have a short lead time.
You can read this guide to learn more about the state of integrated payments.
Payment Processing Software Minimizes Human Error
Most businesses have been victims of human error. A simple mistake in the verification of information can lead to massive financial losses to your business.
Adding the human element into the payment transaction process increases the risk of errors. Whether it’s the duplication of data entered or the deposit/credit of entries into the wrong accounts, humans are prone to recurrent mistakes.
A critical advantage of payment software processing is the reduction of human error. Integrated payment software has a seamless flow of data from the point of ordering. The system does a flawless job of tracking every entry to the general ledger.
Payment processing software is effective. You have the assurance that every transaction in the system corresponds with the payment made to your accounts. Such guarantees provide confidence that your accounts are accurate.
Easy Tracking of Transactions
Over the years, e-commerce businesses have decried the tedious process of keeping up with bank-to-bank relationships. The intricacies emerge when tracking international wire transfers from multiple clients. It might be hard to keep up with such transactions without a proper tracking mechanism.
Every online customer relies on their issuing bank to complete a transaction. The issuing banks have varying approaches to handling payment history information. With such a complex web, trailing a payment is next to impossible for most e-stores.
Tracking transaction information with payment processing software is easy and fast. Most of the payment gateway service providers offer you real-time status notifications. In the end, such approaches help in the real-time tracking of every transaction for future reference.
Reduced Labor Costs
Let’s assume that your business handles 50 online transactions a day. This would account for at least over a thousand transactions in a month. You need a dedicated accounts receivable team to manage your ledger under such circumstances.
Sustaining such employees on payroll in the long term is expensive. The current median pay for bookkeeping, accounting, and auditing clerks is $41,230 per year. You might need at least a handful of such accountants to keep the accounts receivable department running when managing the verification process in-house.
Why would you want to incur such costs when you can outsource the service? Further, the cost of training such employees is overwhelming.
Online Payment Safety
In 2016 alone, merchants lost more than $4.57 billion to credit card fraud. The trend has been worse during the current Coronavirus pandemic. Dealing with cyber fraud remains one of the most significant obstacles to eCommerce.
Your small or medium-sized company is now accepting wire transfers from international clients. But what measures are in place to ensure that such transactions are secure? The use of integrated payment processing software resolves this problem for you.
Every payment processing service provider has an elaborate verification process. These intermediaries work with issuing banks. The technique ensures that your clients are credible before approving their payments.
Payment processing software providers embed the card or wallet information section. The embedding is part of the checkout on your website.
Clients can complete the payment process and await verification on the same platform. Such an approach is vital because it enhances user-friendliness. Most online clients are keen on the ease of navigation.
The interface is the difference between the traditional third-party payment process and modern payment processing software. Third-party payment processing requires that such customers first complete payment on another website. The third-party users reroute the client back to complete the process.
Most of modern customers would consider this process tedious. With a payment processing software integration, your checkout is always frictionless. Such a platform will attract more clients.
Don’t Miss These Benefits of Integrated Payment Processing Software
Embracing digital payments is a matter of when not if for every modern business. It’s risky to move towards wired payments without a precise verification strategy.
Are you wondering how to manage your growing online customer base? You could start by seeking payment processing software support.
With this option, you no longer have to worry about the verification of transactions. The use of integrated payment software is secure. This approach is also frictionless and enables easy tracking of all your entries.
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