CARD AND ELECTRONIC CHECK PAYMENTS: ARE YOU READY FOR THE ONE GAINING FAVOR AMONG YOUR CUSTOMERS?
Seneca said, “Luck is what happens when preparation meets opportunity.” Is there ever a better time than right now to start preparing?
WHAT IS HAPPENING NOW?
The conversion from paper checks to B2B electronic payments is occurring at an accelerating pace. Financial executives around the globe in large corporations, and in an increasing share of mid- and small-sized corporations, are encouraging B2B suppliers to accept B2B electronic payments as a way to help them improve cash management, reduce payment transaction costs, and simplify the complete payments process.
WHAT DOES THE FUTURE HOLD?
The most prominent electronic payments implementation to-date among B2B suppliers has been electronic check acceptance; this picture, however, is changing. According to the new 2011 Visa Cash Management Survey, “Approximately 25 percent of companies plan to increase their use of corporate payment cards and decrease their reliance on checks in the near future. Companies believe that corporate payment cards will reduce costs and enable greater cash flow management as a result of more transparent financial data for payables and receivables.” Aliza Knox, senior vice president, Visa Commercial, Visa International, said, “The research points to a growing industry trend that checks are declining in popularity because more companies are seeking solutions that optimize payment and expense management to help them make better business decisions.”1
A PRAGMATIC APPROACH
No doubt, in an unstable, unpredictable, chaotic environment, one in which it may be difficult to take stock of investments, manage change, and develop business, it can be trying just to keep operations running smoothly. Yet, since chaos is known to yield ordered systems, what better time is there to prepare for the future than right now?
Suppliers that view B2B electronic payments acceptance as an investment in improving customer relations, customer service, and general performance, in addition to its structural advantages—for example, improved cash flow, reduced collections, and simplified payments processing—will be prepared for the increasing opportunities available to those who embrace B2B electronic payments.
How’s your luck today?
1 Source: http://www.ameinfo.com/115098.html
B2B electronic payment settlement looks to us as a primary future payment system. We use it in our accounting business and it’s popular among our clients. Great primer for the newly informed. Thanks!