In this three-part series, we've considered the issues surrounding the use of paper checks and explored the alternatives. In part three, we'll offer suggestions for transitioning your B2B (Business to Business) customers to digital payment methods.
Easing your transition to digital payments
As we stated in part one, fewer consumers and businesses are paying by check, but some continue to do so. Even if you switch to the digital payment methods outlined in part two, you'll still need to be able to accept checks.
Thankfully the technology available to businesses today can streamline your acceptance of both digital and traditional payments. Here are some suggestions to get you started:
1. Choose a payment solution that integrates with your ERP system.
The payment system you choose must work seamlessly with the rest of your business systems, particularly your ERP solution. A solution that
2. Digitize and automate reconciliation for the checks you accept.
Yes, checks are declining, but they are still a
Using machine learning, you can automate your cash application process to match any payment type with open receivables. Capture and reconcile payment data, eliminate entry errors, significantly reduce manual effort, and speed up cash flow.
3. Automate cash application.
Much of the difficulty around cash application stems from the fact that remittance information is often supplied separately from the payment. This is especially so with electronic payments such as ACH, EFT, wire transfers, and virtual cards. Because remittance advice isn't formally required and is technically a courtesy, sometimes there isn't any information accompanying payments.
Your AR staff has to spend time sifting through files—sometimes from multiple systems—to find a payment's matching remittance details or go back to the customer to request clarification.
There are tools that can help you manage the reassociation of payments and invoices. Versapay's
You can also resolve this challenge by having your customers pay you through a secure
When your customers make payments within Versapay, the remittance information is automatically posted along with the payment.
4. Make paying online convenient for customers
To successfully encourage eliminating check payments, you must make
Ease-of-use is essential when getting your customers to embrace online payment methods. Solutions such as click-to-pay invoicing that allow customers to make payments without having to create a login are a great way to encourage customer adoption.
Boost cash flow and customer satisfaction with digital payments
A top reason finance leaders cite for offering digital payment methods is that
Digital payment methods are convenient for your customers, and they benefit your business by saving resources and optimizing cash flow. Settlement times are faster, and you'll no longer have to deal with complications from check float. In a
If you are ready to explore the world of digital transformation to online payment methods,
By Versapay,