What Fortune 500 Companies Know About Payment Collection - 7 Ways Pre-Authorized Debits Can Transform Your Business
How much of your day is squandered on managing payments?
Collecting payments, processing payments, dealing with fees on payments... getting paid can be a nightmare.
Imagine if a Fortune 500 company spent time chasing payments.
(Hint: they don't)
Why? Because they collect payments automatically, using technology like pre-authorized debits.
It's time to get on board. Here's 7 ways pre-authorized debits can revolutionize your payment collection - just like the Fortune 500.
1. Faster Than Cheques
Cheques are slow. You have to:
That's too many steps to get paid. With pre-authorized debits, you can skip the waiting and just get paid. Once you get permission and account details from your customer, you can schedule transactions and get paid.
2. Cheaper Than Credit Cards
Credit cards are great for some things. Recurring payments isn't one of them. Not only do you pay monthly processing fees on credit cards, you can pay transaction fees upward of 3%. That eats into your profits, leaving less on your bottom line (which is the last thing you need).
Per-authorized debits are the cheaper option. While credit card processors take monthly fees and processing fees, most pre-authorized debit processors skip the transaction fees. Shop around for pre-authorized debit processors with the best rates, and you'll be laughing at credit card fees.
3. Easier Than Cash
I don't have anything against cash. In fact, it's useful to carry cash! But when it comes to recurring payments, pre-authorized debits are a better option. Here's how accepting cash usually goes:
Just like cheques, there's too many steps to get your money into your account.
Since pre-authorized debits go from your customer's bank to your bank, you can banish the word "waiting" from your vocabulary. No bank lines, no driving, no worries.
4. Cuts Down Your Paperwork
Did you know the average office worker uses 10,000 sheets of paper per year? That's a whole lot of wasted trees. It's not just about the environment, though. Paperwork takes time, energy, and resources to manage (not to mention money).
The less paperwork you process, the more efficient and cost-effective you can be. Pre-authorized debits can be processed with zero paperwork. That lets you save the environment, and save your money at the same time. How often can you do that?
5. Reduces Outstanding Invoices
Your customers are busy people, and sometimes they forget to pay. It happens - but not with pre-authorized debits.
Payments can be scheduled in advance, and are withdrawn automatically. Your customer doesn't have to worry about remembering to pay, and you don't have to worry about getting paid.
Isn't it awesome when you can provide better service to your customer, while also making things easier for yourself? Yeah, I thought so too.
6. Makes Bookkeeping Easier
Computers have improved all aspects of business, and bookkeeping is one of them! In fact, we have a blog post here that talks about digital bookkeeping.
But if you have digital bookkeeping, why would you still want to wrestle overflowing filing cabinets and boxes?
With pre-authorized debits, your records are all digital. Recording, tracking, and managing payments becomes a snap when you combine them with accounting software. Plus, come tax time, all the payment records you need are just a few clicks away.
7. It Frees Up Your Time
One of the greatest benefits of using pre-authorized debits is that it frees up your time. Since time is the greatest commodity, I'd say that's a pretty sweet deal.
I can hear the question now - "How does it really save me time?"
Here's a story about one of our customers...
A little while back, I chatted with someone who was interested in automated payment collection. They had a successful restaurant, and franchised several locations. This meant they had to collect franchise fees.
Turned out this person was spending almost a full day every week collecting the cheques for franchise fees. Talk about a waste of time! They wanted to grow the business, not drive around picking up pieces of paper.
Pre-authorized debits ended up being the perfect fit. Automating their payment collection gave them back the time lost, so they could focus on continuing to grow.
Think about how much time you spend simply collecting payments. What else could you do with those hours?
Let's Wrap It Up
Pre-authorized debits aren't just about getting paid.
They're about getting paid in a way that's easier, more secure, and more convenient than traditional payment methods.
If you're curious about how pre-authorized debits work, check out the post I wrote here.
Or, if you're wondering how to use pre-authorized debits, I wrote a post on that too.
As always, if you have any questions, comments, or hate mail please contact us here!
(But please don't send hate mail. It's hurtful.)