Can Automated Payments Cut Costs for Your Business?
Investing in a payment system is a big decision for any company, no matter how large or small. Transitioning from manual processing to an automatic system requires time and money. In addition to paperwork and employee training, you will also need to set aside time to implement and smooth out new processes.
On the surface, it may seem like investing in a payment processing system isn’t worth the hassle. But in the long run, automated processing systems save your company time, trouble and revenue.
The Costs of Manual Payment Processing
While investing in a new payment processing system may seem expensive, in the long run, the costs of manual payments are much higher. There are several ways your non-automated system may be leaking money and putting your business at risk.
- Manual payment processing drains revenue by spending employees’ time. Whether customers pay by phone or by web portal, non-automated processing requires the time and attention of employees spanning multiple departments. This inefficiency wastes time for both employees and customers.
- Non-automated systems leave more room for human error — and data breaches. Studies show that the leading cause of data breaches is employee error. With more employees doing manual payment processing, your business is more vulnerable to frauds, hackers and cyber thieves.
- Companies that use manual systems struggle with PCI compliance. The PCI DSS mandates that any company that accepts credit card payments must follow strict guidelines to protect cardholder data. But companies that use manual systems often struggle to meet both customers’ and PCI DSS needs — especially when it comes to recurring payments. In the best-case scenario, a company without a secure place to store data wastes both customers’ and employees’ time by re-entering payment information each time a transaction is made. At worst, companies may store sensitive data in insecure databases that are both non-PCI compliant and susceptible to breaches.
- The cost of a data breach far outweighs the benefits of a manual payment system. On average, companies spends $879,582 in damages after a data breach occurs — and that’s not including the additional $955, lost due to the disruption of operations. Add in a tarnished reputation and a loss of consumer trust, and it’s easy to see how manual payment processing could lead to major costs for your company.
How a Payment Processing System Pays Off
In the beginning, transitioning to an automated payment system may be a large investment. But between streamlined work processes and improved cash flow, you’ll be seeing big returns in no time.
- Automated payment processing makes employees more efficient. When employees spend less time taking customer service calls, making manual data entries and jumping through the hoops of complicated work processes, they have time to complete more pressing tasks. You will be able to use your budget and your workers’ time more efficiently.
- Instant account reconciliation means less fraud. Unlike manual payment processing, an automatic system makes account reconciliation immediate. That means fraudsters are detected more quickly and are less likely to get away with your customers’ money or information.
- Payment processing systems increase cash flow. Using an automated payment system can dramatically speed up the settlement process — from 30 to more than 90 days for paper-based transactions, to just 24 to 72 hours for electronic .
- Cardholder data is more secure and PCI-compliant, no matter how many payment methods you use. With a SAP-certified, PCI-compliant payment solution, your company can use a variety of payment entry points without ever sacrificing security or ease of payment. Whether your customers pay online, via mobile phone, through a calling center or at a brick-and-mortar location, raw cardholder data will be encrypted and will never enter your system.
- An easier, quicker payment process means happier customers. An automated system makes payments easier than ever for your customers. It allows them to safely pay from nearly anywhere at any time, including via subscription payments.
How a Payment Processing System Paid Off for Arthrex
Before investing in a payment processing system, Athrex — a global medical device company — had a hectic accounts receivable department with a manual payment processing system that was error prone and struggled with PCI compliance.
Listen to our webcast to hear about how transitioning to Paymetric’s SAP-certified solutions helped Arthrex reduce costs and maximize investments in their Enterprise Resource Planning (ERP) system.
Want to Get More Out of Your Payment Processing System?
Is your company struggling with a manual payment system? Contact a Paymetric representative today to learn more about our SAP-certified, PCI-compliant payment solutions.