How are electronic payments used?
Electronic payment systems are just what they sound like: a way to send or receive funds online. Depending on your business, you can execute financial transactions electronically through a variety of ways:
- Storefront/Counter Sales: Customers can walk in and purchase products from you in person, at a brick-and-mortar location.
- Website/Online Sales: Customers can order and pay for your products via your website.
- Sales/Phone Orders: Customers can submit orders over the phone, which are typically fielded by a customer service representative who collects payment information.
In any of the above scenarios, it is necessary to provide a way to accept credit card payments from your customers. At Visual South, we help our customers accomplish this by creating a complete integration between their ERP and payment system.
There are also solutions available in the marketplace that will sit in between your ERP and backend payment processors. These solutions have an integration framework and will typically charge on a transaction-by-transaction basis, so you should carefully consider your order volume.
Electronic payments are also used in the “opposite” direction to automate online payments to your vendors, instead of using a paper-based method. These solutions typically will automate the entire accounts payable process—you can upload your vendor’s invoice and then the system automatically reads it, and does a three-way match with your purchase order, receipt, and the vendor’s invoice. It’s important to note that a solid solution will look at invoices at the line-item level, as opposed to the header level, to be as accurate as possible.
When integrated with your ERP, these online payment solutions can be a huge timesaver while eliminating data entry errors. Now, these solutions do not promise to be 100% accurate due to potential discrepancies with tolerances; yet, the automated workflow routes only the invoices that need attention, which maximizes the time of your accounts payable resources. Electronic payment solutions allow you to pay the correct amount promptly, and also make sure nothing slips through the cracks and becomes an outstanding debt. Paying invoices electronically can also help expedite the month-end closing process since payments are made immediately.
Having a tight-knit integration between your ERP and payment system can greatly enhance your cashflow, open new sales channels, increase revenue, and reduce your costs. Every company has different needs, internal infrastructure, licensing limitations or preferences, and budget. Here at Visual South, we can help you get set up for success, but the first step is a conversation with us. Once we understand your requirements, we can propose a solution for ERP payment methods, or introduce you to reputable vendors who provide platforms that integrate with your ERP. Feel free to contact us to have a conversation!