Essential Features of Online Payment Platforms
Online payment platforms are extremely diverse in what they offer. Many of them have vastly differing features from their competitors, and these can affect whether you want to use one or another.
These features are further enhanced when specific payment methods opt to focus on one industry over another. Small and large businesses, or different niches, may have very different requirements. Thus, the following should help you understand the features available to you should you decide to opt in.
Seamless B2B Invoicing
Depending on where you are charging and the purpose of the charge, you may need to make invoices before or after payment. Regardless, you should seek out methods to generate these automatically. You can then send them without manual intervention.
These will also need to contain extra information, such as payment processing fees, invoice numbers, or any other relevant data. You want a system to add these, though, without you needing to calculate them on a per-invoice basis.
Your system should use an automatic process to send invoices to business partners. It should also send accepted payment notifications, reducing the manual work you need to do. This can then reduce manual data entry errors to almost zero.
You also need a system that informs you whether a customer payment has occurred. Real-time tracking of invoice status all the way from creation to payment can give you and your customer the transparency you both need.
Streamlined Payment Processing
Handling varied payment methods without issues is an important step in ensuring payments are on time. Digital payment processing compared to manual transactions lets you handle payments in seconds. Online transactions allow this with a fraction of the hassle. Online payment systems can also benefit you by:
• Automatically approve payments or make it easier to do so manually
• Inform you of issues in real time to allow you to take action faster
• Compliance checks that do not demand a third party in all cases
Efficient Purchase Order Routing
When you receive an online order, you do not want to have someone pass along the orders to the right people by hand. Instead, an online system can pass orders to warehouses, inventory holders, or others in the supply chain. This helps you get everything moving as fast as possible.
If you have a unique supply workflow, such as one that includes QA steps, many platforms offer tools to include these. A high-quality payment platform also allows you to track an order status or even allow a customer to do so. This will allow you to see its location in the workflow at any time, helping you if you need to handle bottlenecks or location items.
Multi-Layered Security Measures
It is imperative that you use a powerful security system to protect both your own finances as well as those of your customers. Without it, any credit card transaction could become the target of a malicious actor.
Advanced payment platforms will maintain a secure network, ensuring you can achieve PCI compliance on their end. You will need to follow appropriate regulations for any data you hold, but you can have the assurance that such a platform is not a weak link in the chain.
Integration with Accounting Systems
To help you speed up your accounting, consider platforms that integrate with your own financial systems. AvidXchange has integrations with more than 240 accounting solutions for the middle market. AvidXchange can automate your accounts payable process to help you organize your payment processes much faster.
This list is in no way exhaustive. Make sure that you do the appropriate research to find out which platforms will work alongside your internal systems. Having real-time information available in your books is often a lifesaver and allows you to make better business plans.
Automated Data Capture and Error Reduction
While having all your data in digital form is very important, you will sometimes receive paper documents you need to handle. When this occurs, you need a system that can make it easier to process these.
Many online platforms allow you to use OCR or “Optical Character Recognition” to capture data from paper invoices. This helps you avoid errors when transferring data and can even validate data so you can ensure there are no problems with the scan or original copy.
Acceptance of Diverse Payment Methods
The number of ways you can pay online is varied enough to be a problem for anyone starting out for the first time. At the very least, you want to ensure you can accept:
• Virtual Credit card
• Debit card
• Direct Deposit
• Bank transfers
Linking your merchant account with an online system and not accepting these will be a problem. At the same time, it is important that your systems are compatible with transactions from across the world. The fewer things that cause transactional friction, the better.
Benefits of Using Online Payment Platforms
Using an online payment service also offers benefits over and above the developed features of their platform. For example, customers who use them are much more inclined to make an automated credit card transaction multiple times.
Time and Cost Savings
Using an online system can free up resources for you to focus on more complex or strategic tasks for your business. You also will not need to hire employees to handle this process manually. Lowering your operational costs in this way also allows you to put effort and money aside to perform work that will allow you to grow more, including:
• Improving your user experience
• Researching new methods of production
• Experimentation that would be otherwise risky
• Developing a perception of product or service quality
• Increasing marketing
Any one of these could be out of your reach without lowering costs elsewhere. Thus, automated workflows can ensure you focus your company better than ever before.
Strengthened Supplier Relationships
Making timely payments increases the trust you can receive from suppliers. Offering a higher level of transparency and paying suppliers using their preferred payment methods can also do the same.
The reliability of online payment platforms can also reduce the risk of missed or delayed transactions. These assurances are great for other businesses you work with, making them more likely to work with you.
Using an online payment processor also allows you to mention the high level of security you offer to your business partners. Fraud protection such as this is a very important part of modern business. Thus, informing others that your business complies with regulations takes a weight off the shoulders of those you work with.
Such a high-quality experience can help you to build strong, long-term relationships. Thus, you can have a greater level of security if problems occur in the future.
Scalability to Support Business Growth
If you handle all your payments yourself, you may have issues when your business grows. You will likely experience bottlenecks in transactions, as you cannot keep up with manual transactions.
Using an online payment service will instead mean your peak number of transactions will be much higher due to the automation they offer. As you scale your business up, this then leads to a cost-effective method of increasing the amount you can process.
This benefits you both now and will also do so long into the future as you continue to expand.
Revolutionize Your Business by Utilizing Online Payment Platforms
Overcoming the limitations of manual payment methods allows your business to go from strength to strength. Such a platform boosts your efficiency while also offering assurances of security and efficiency.
AvidXchange knows what this means for businesses and offers payment solutions for any industry. So, if you are considering an online payment option, visit AvidXchange to book a demo. Discover how you can bring your business into the future of finance today.
