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Outsourcing payment processing provides numerous benefits. It helps small businesses to grow and larger businesses to develop or maintain a competitive advantage.
Outsourcing payment processing also:
- Reduces overhead
- Enables staff to focus on core responsibilities
- Eliminates tedious tasks such as sorting mail, opening payment envelopes, endorsing checks, completing deposit tickets, and making trips to the bank.
- Provides a system of checks and balances for businesses and organizations that do not have separate accounts receivable and accounts payable functions.
- Assures that all payments received are processed and deposited same-day prior to the bank’s cut-off time for same-day credit.
- Provides payment information required to update customer records in required formats
- Reduces mail and processing float, speeds up funds availability (can result in increased interest income or reduced interest expense)
- Reduced security issues
- Provides access to specialized expertise without ongoing cost
- Meets requirements of a credit provider, a third-party collateral agent or auditor
- Provides the freedom to select bank services based on service not location
Businesses and organizations may also outsource payment processing to meet requirements of a credit provider, third party collateral agent or auditors.