5 Great Reasons To Outsource Payment Processing
According to the Aberdeen Group, check printing in North America involves $25 billion in processing costs each year. Most companies spend an average of $10 to process every single check that goes out of their office. The obvious solution is to stop printing so many checks, because switching to electronic payments cuts down on paper, printing, mailing, and processing costs.
But now you run into another problem. Overhauling your in-house payment processing and keeping it up-to-date can be a costly, time-consuming process. And there are still vendors who insist on check payments, so you’ll be processing multiple payment forms. The solution? Outsource your payment execution.
1) Cost Reduction
Switching even part of your checks over to an electronic payment system saves money. And if you outsource your payments, then the employees you would otherwise be paying to print and mail checks can focus on other tasks. That saves them time and saves you money.
Outsourcing also means you won’t have to deal with the costs of updating your payments process. The company you outsource to will take care of the costs associated with updating security protocols and other operational expenses.
2) Increased Security
You might think that outsourcing payment processing puts your finances at risk. But that’s not the case if you choose a trusted business process outsourcing firm. In fact, it can actually increase security.
Trying to secure financial information internally requires intense security protocols and places a burden of risk on your financial department. Let a company that prioritizes electronic security for their customers worry about implementing the protocols needed to protect your financial information from cyber theft.
3) Lessened Fraud Risk
Outsourcing payment processing actually improves your internal controls. Using a trusted third party provider keeps important financial tasks separated and therefore help reduce or eliminate fraud.
Check fraud is one of most common types of payment fraud. It can originate in-house or from outside sources posing as legitimate vendors. A neutral, certified firm can devote more time and resources to preventing fraud than most in-house payment departments.
4) Improve Vendor Relations
Streamlining your payment system means faster and more accurate payment processing. Since everyone’s happier when they get paid on time and without any hassle, that improves relationships with vendors
On top of that, if you choose a payment system like NextProcess vendors are automatically kept in the loop about the payment process. They’ll receive clear notifications for payment application and get to choose the payment option that works best for them.
5) Flexible Payment Solutions
Along with all the other benefits of third-party payment processing, NextProcess offers a highly configurable system. We’ll be able to work with all your different vendors’ needs. And you can monitor the status of your payments in real time.
For paper checks, our check-printing software lets you configure custom logos, fonts, signatures and more. We print checks on blank stock that’s MICR encoded at the time of printing. The checks are then trifolded, pressure sealed, and mailed the same day they print. And for electronic payments, our ACH services ensure rapid, secure file transfers from your bank.
If you’d like to see how well our payment solutions can work for you, just get in touch. We’d be happy to schedule a demonstration and answer any of your questions.