Digital solutions such as automation and payment integration have become a necessary part of managing business transactions seamlessly. Digitizing your business means automating most tasks required to run a business’ payment systems and integrating them with modern digital technology, saving valuable time, effort, and cost.
Automated payments are critical aspects of running a competitive business, providing customers with frictionless, efficient, and secure transactions. Therefore, learning more about how automated payments work and applying them to your business processes could have long-term advantages.
Understanding Automation and Payment Integration
Payment automation does not refer to a single transactional process but rather a holistic system. When implementing payment automation in your business, you account for virtual cards, ACH transfers, checks, and other transaction modes.
Payment automation and other digital solutions have risen in popularity with the decline of cash payments. With the increase in social distancing due to the pandemic, customers opt for contactless payment options and e-commerce transactions. Some half of the world’s population might choose digital wallets by 2024.
According to Accenture, customer expectations will shift toward a smoother, secure, and embedded payment method where transactions may seem invisible and effortless. Your business can engage the modern crowd through well-planned payment automation that includes agile methods for easy implementation that scale according to your customers’ needs.
You can manage fast and accurate transactions without human intervention through payment automation, so your staff can focus on other value-added aspects of running your business.
How Automated Payment Works
Payment automation is a carefully structured system that enables your business to accurately prepare transactions among customers, vendors, and other recipients. Payment automation achieves the process by calculating and compiling payment-related data from multiple sources, equipping them with unmatched precision.
Payment automation usually begins with the in-depth digital analysis of existing payment systems and methods. Then, IT experts will vet through and zoom in on the most critical data points, collecting necessary information from customers and other parties required for optimized automation.
At this stage, programmers apply their expertise to determine data accuracy and focus on relevant details that drive decision-making within your platform.
Qualified IT specialists will convert the collected raw data into actionable insights that power an automated payment system. Upon data conversion, programmers code the results for seamless integration and interpretation within the computerized payment system.
Developing the Automation Software
Once programmers have successfully collected all the converted data they need, they will proceed to develop an automated platform that incorporates the information. While automation and payment may differ vastly among businesses, they share some software prerequisites that keep the system in top working order.
For instance, an automated payment system should log and verify a customer or party’s complete contact information with each transaction to provide visibility for easy reference and future actions. Similarly, most software would include ticketing features to guide customers through transaction issues.
The Advantages of Payment Automation
Payment automation provides a vast range of benefits for your business, including enhanced account security and improved relationships with customers, employees, and vendors. These digitally supported systems include automatic invoicing, where the specialized software collects customer/vendor data and processes it. Alternatively, the program will submit the information for manual processing if it detects inconsistencies that interfere with how the automated payment system works.
Reduced Transaction Costs
Automated payments can provide your business with significant savings compared to manual check or cash payments, especially when factoring hundreds and thousands of transactions across a given period.
Automation can significantly reduce the risks of human error, which could result in duplicate charges, input errors, and other common issues that affect your business efficiency.
Optimized Payment Security
Payment automation usually includes compliance with some of the latest security guidelines that offer added protection with each transaction. In addition, a built-in data tallying system authenticates the customer information for each payment to eliminate errors and fraudulent purchase orders.
Ultimately, enhanced security through automation will give you peace of mind, preventing the conventional payment pitfalls that may delay or disrupt your business operations.
Gather Valuable Financial and Business Insights
A payment automation solution serves as a one-stop hub for insightful data that powers your business decisions and planning. You will have the opportunity to uncover customer payment trends, refund metrics, and other significant information to help you develop an effective business strategy to increase your revenue and elevate your success.
Frictionless Customer and Vendor Communications
Automation and payment integration enables you to establish and maintain business relationships among parties through optimized communication. The system records and syncs data according to each user, making it convenient to follow up on a request or track a payment without searching through mountains of data.
As such, automation can free up valuable time that you can spend on improving and expanding your business while maintaining customer and vendor engagements. In addition, an automated program eliminates inconsistencies in communication experiences, establishing confidence and trust in vendors and customers.
The payment experts at National Merchants Association can guide your business toward the most viable automation and payment solutions based on your specific needs. Connect with our payments experts today to discover what works best for you and start optimizing your transactions while minimizing costs.
ABOUT NATIONAL MERCHANTS ASSOCIATION
National Merchants Association is a merchant advocacy group dedicated to reducing the unnecessary fees associated with accepting credit card payments. Since 2004, they have delivered tailored payment processing solutions and best-in-class merchant service and support for all levels of risk. Whether it’s high-risk or low-risk, brick-and-mortar or e-commerce, National Merchants Association will create the best processing experience for your business. For more information, visit www.nationalmerchants.com or call (866) 509-7199.