4 Ways Electronic Bill Pay Helps Manage Risk
The ability to send and receive electronic bill payments offers a host of important benefits to merchants, such as:
Cost reduction. Your business will spend less time and less money processing electronic payments than you will when customers pay be paper check or cash.
Increased transaction speed. Electronic payments are instantaneous – no need to worry about payments getting lost in the mail or waiting for the postal system.
Environmental protection. Paperless payment systems require fewer material resources. Go, planet!
Electronic bill pay offers one additional benefit that often gets overlooked: better risk management.
Managing Business Risk with Electronic Bill Pay
Switching from paper-based payments to electronic bill presentment helps to manage risk in the following ways:
1. Reduced Cash Flow Gaps
Some of the most successful businesses in the world discover that they are "rich" in theory but "poor" in reality. This is because it can take weeks (or months) to collect receivables. During these long waits, you still have to meet regular business expenses such as:
- Employee salaries
- Administrative overhead
- Loan repayments
- Vendor invoices
But by incorporating electronic bill pay, you can close this cash flow gap and make it easier to cover everyday expenses. The more you limit your exposure, the less need you’ll have for merchant cash advances and other emergency infusions.
2. More Secure Verification
By enrolling in electronic bill pay, you have access to PCI-compliant payment processing and fraud prevention tools. This helps reduce your risk of fraud-related chargebacks.
With PCI-compliant electronic bill payment, you can easily verify transactions in real time and take advantage of industry-leading data security tools.
3. Fewer Accounting Errors
Paper-based accounting systems are prone to human error:
- Do you have all the receipts you need?
- Did anything get lost in the mail?
- What happened to that invoice that was on your desk?
Every oversight, missing check or calculating error increases your risk and reduces your profitability. With electronic bill pay, however, you can integrate payment processing directly with your accounting software. BluePay is already integrated with tools like QuickBooks or Microsoft Dynamics GP.
4. Recurring Billing and Automatic Reminders
One of the benefits of recurring billing is the convenience of simplified payment. You’ll never need to remember to send invoice again! And it’s great for your customers, too, since they can expect consistent delivery of their bills. This is especially useful during busy sales seasons or while traveling, when bookkeeping is the last thing on anyone's mind.
Get Started: Reduce Your Risk Exposure with Electronic Bill Presentment
Whether you operate a mom-and-pop store or an enterprise-level company, switching to electronic bill presentment can dramatically reduce costs, delays and risk.
To find out if electronic billing is right for your business, speak with one of our specialists today.