Keys to Increasing Direct Payment Adoption: Faster, Easier, More Convenient
As a business owner, you already know that electronic payments save you time and money. In fact, when you calculate the processing fees, man-hours and material costs of traditional paper billing, direct payment can save you as much as $20 per transaction. A business with 10 employees, for example, can reduce annual expenses by up to $2,400 by enrolling its staff in direct deposit.
And yet, despite these advantages, some are reluctant to embrace direct payments. They prefer the familiarity of paper invoices and checks — even payday checks that take a long time to process.
Use the tips below to reduce direct payment resistance among your suppliers, customers and employees.
1. Make Enrollment Easy
According to Alutiiq Payroll Manager, Dee Nelson, the most effective way to convert direct payment holdouts is to include enrollment forms with each employee’s paycheck. This simple tactic can also be used with suppliers and other B2C clients when sending or receiving invoices.
2. Survey & Educate
Another strategy is to simply ask why your employees, vendors and customers have yet to embrace direct payments. Thereafter, you can address their concerns and promote the benefits of paperless payment options.
3. Offer Additional Perks
The more employees who enroll in direct deposit, the more money your company saves every month. Consider sharing some of these savings with those who embrace direct deposit (or sharing the cost with those who don’t). You can offer similar discounts to suppliers and customers who decide to go paperless.
Alternatively, you can offer to pay all direct payment recipients sooner. Paperless billing is already much faster, but by reducing the turnaround time even more, you can further enhance the “speed” benefits of direct payment.
4. Promote the Environmental Savings
Going paperless doesn’t simply save time and money — it also saves the planet. Educate your employees and customers about how going paperless can help reduce their carbon footprints. You may be able to win some converts by appealing to their eco conscience.
5. Make Direct Payment Mandatory
Depending on your state, you may be allowed to make direct deposit mandatory for all employees. If your state doesn’t allow this, consider making direct deposit automatic. Anyone who wants to opt out must jump through additional hurdles to receive paper checks.
Need Help Taking Your Company Paperless with Direct Payments?
Direct payments offer an impressive host of financial and environmental benefits. If you haven’t taken your company’s payroll, billing, and processing completely paperless, we’re here to help.
Use the free resources below to get started: