They say that money makes the world go around, and without payment processing, this would simply be impossible. Payment processing is a core component of many businesses. Whether your company is in need of business check printing software, direct deposit, payroll, or tax document assistance, outsourcing your payment processing services could be an ideal solution.
However, many businesses may be hesitant to consider outsourcing their payment processing because they don’t fully understand how these firms work. Isn’t it safer and more efficient to simply perform your own payment processing, such as payroll and direct deposit, in-house? Traditionally the answer may have been yes; however, as business models adapt to a modern economy, more and more businesses are seeing clear advantages of outsourcing their payment processing needs.
Here, we take a closer look at why you should consider choosing an outsourced payment processing team to streamline your financial processes and potentially save you both time and money.
SAVE ON COSTS
Outsourcing your payment processes can save on costs by increasing efficiencies, streamlining processes, and centralizing your services. Additionally, you can also free up the valuable time and resources of your employees, allowing them to focus on other tasks and projects.
If 2020 has taught us anything, it’s that remote work is now a viable (and often even smarter) alternative to the traditional model of working every day in an office. Additionally, as digital technologies become even more sophisticated, the need for in-office work becomes increasingly slim.
This is one of the many reasons why outsourcing your payment processing makes sense in our modern economy. With so many digital communication platforms, you’ll never need to worry about maintaining communication, even if you never work directly with your payment processing team.
Today, more and more financial transactions and processes, such as direct deposit, are completed 100 percent electronically. While this makes these transactions much faster and more convenient, it also opens the door to potential hackers and fraud.
By outsourcing your payment processing, you can rest assured that your finances will be protected by the most advanced security measures and handled by experienced professionals. After all, payment processing is all these firms do, so they can focus and specialize on improving and protecting your processes.
While always a top goal, successfully managing growth can be a challenge for any business. As your company grows, in terms of both capital and employees, you’ll face new hurdles and your old processes will need to be revamped. Payroll, for example, is relatively straightforward with a start-up of just five employees. But down the road, that company might add fifty employees and start including benefits. All of a sudden, the payroll process is entirely transformed and much more complicated.
By working with an outsourced payment processing team, you’ll never have to worry about scalability as a deterrent for your growth. These professional teams have all the tools and resources to address payment solutions for your company—no matter the size. Additionally, they can tailor their services to address the unique needs of both large and small companies.
REDUCED RISK OF FRAUD
Believe it or not, but check fraud is still a common issue. According to the Federal Trade Commission (FTC), there were over 27,000 reported check fraud scams in 2019, totaling losses over 28 million dollars. Check fraud can be damaging for you and your business, not only in terms of lost funds, but in preserving your reputation, as well.
Outsourced payment processing companies can help you dramatically reduce the risk of fraud. They use the most advanced security software and processes to keep your transactions and information secure. They also have the experience to recognize potential scams.
IMPROVE BUSINESS RELATIONS
When your financial processes are faster, more efficient, and more secure, your business and vendor relationships can only improve. On-time payments build trust and loyalty and can greatly improve your long-term client relations. When looking at the big picture impact of your financial processes, the relationships with your vendors (and your own employees) should never be overlooked.
WHAT OUTSOURCING PAYMENT PROCESSING CAN DO FOR YOU
As you can tell, there are several benefits to outsourcing your payment processing. These companies can save you time, money, and ensure that your financial transactions are safe and secure. But what exactly do these firms do? What services do they offer? Here, we take a look into some of the common payment processing services:
1. Check printing and mailing.
An outsourced payment processing team can handle all your check writing and printing services.
2. ACH and direct deposit automation.
Make your direct deposits as simple as possible by uploading all your payments and checks and financial processes to one easy-to-use system.
3. Statement printing and mailing.
No matter what kind of statements or documents you need sent out, a payment processing firm has got you covered. They can print and mail invoices, statements, or marketing materials, and even store your materials.
4. Tax documents.
For most of us, tax season is an unwelcome head that comes every year. However, working with an outsourced payment processing firm can bring you peace of mind every April as they handle the printing, mailing, and filing for all your important tax documents. They can take care of 1099s, W-2s, and ensure all your documents are filed properly and on time.
CONCLUSION – WHY OUTSOURCE YOUR PAYMENT PROCESSING?
In today’s business world, more and more businesses are seeing the advantages of outsourcing their payroll, check printing, direct deposit automation, and other payment processing services. As industries evolve to meet the needs and challenges of the 21st century, it just makes sense for many businesses to adapt in such a way that makes payment processing easier, more secure, and more cost-effective.
If check printing is an important part of your business, or if you simply want to free up time and resources, you should look into the possibility of working with a trusted outsourced payment processing firm. You can save time, money, and gain more peace of mind knowing your payment processing is in the hands of a team of experts.