Checks in commercial transactions are costing businesses more than they realize. Legislative mandates in various parts of the World that there will be a complete transition to digital platforms within the next year or two. In the U.S., the annual volume of B2B payments amounts to $24 trillion, with approximately half of these transactions still reliant on checks. Despite the prevalence of digital options, paying through checks remains a central element of accounts payable procedures, which themselves are labor-intensive. The frequency of attacks on businesses is on an upward trajectory, with instances of check fraud nearly doubling in recent times.
The question then arises: Why do businesses in the U.S. persist in using paper-based methods for vendor payments?
A Change in Mindset Requires Education
A more profound transformation in mindset is necessary to prompt businesses to reconsider their back-office operations and move beyond traditional check payments. Educational efforts are crucial to helping these enterprises recognize the advantages of automating their accounts payable processes, especially payment and disbursement procedures. Misconceptions exist about the level of effort required to achieve such modernization.
In the pursuit of modernizing accounts payable, payments should take precedence. This strategic approach can yield dividends by reducing the susceptibility to attacks and vulnerabilities that malicious actors might exploit to disrupt operations or redirect payments for personal gain. An essential defense against fraud is the adoption of virtual cards, which enable transparency and enhance control over expenditures.
Usio specializes in keeping abreast of regulatory changes, anticipating shifts at both the federal and state levels, as well as advancements and other cutting-edge technologies. The favorable outcomes of these endeavors include businesses gaining essential education, altering their money management methodologies, and offering their vendors a more diverse array of payment options. In turn, these opportunities create possibilities for time savings, and cost efficiencies.
The initial step lies in digitizing AP payments and conquering the mental barriers of “we’ve always done it this way” and misconceptions about the perceived difficulty. However, creating such an experience doesn’t adhere to a universal blueprint. Strategies for achieving this goal will differ from merchant to merchant due to localized payment inclinations and practices across diverse markets and regions.
From a payments perspective, streamlining the checkout process is the starting point, enabling a seamless flow that reduces cart abandonment and lost sales. The checkout experience is the first juncture within the payments cycle where merchants can deliver a meaningful and efficient experience to customers before progressing to optimizing payment methods and authorization rates.
Harnessing Provider Collaborations
In enhancing the checkout experience, tapping into the expertise of payment providers, like Usio can mitigate cross-border complexities and foster revenue expansion for both small enterprises and larger corporations. Partnerships are of increasing importance in today’s landscape due to the wealth of data points generated and analyzed by companies. This task is compounded by complexities arising from advanced technologies like artificial intelligence (AI) and machine learning.
Looking forward, the focus should remain on creating an optimal and meaningful customer experience. Businesses must explore diverse methods through which customers interact with them.
About Usio Akimbo Prepaid Card Issuing
We provide a turn-key platform that makes creating and managing cards painless and simple. Whether you need cards for emergency relief, accounts payable, disbursements, or rewarding loyal customers, our expert team can help your organization configure a card program to suit your needs. Don’t have a development team? You don’t need one! We have ready-to-go cards you can send immediately.
Learn more at akimbocard.com.
Source: www.pymnts.com
