Common Myths Surrounding Electronic Payments
While virtual payments are experiencing growing popularity and acknowledgement, there are several misperceptions that may prevent even greater adoption of them. We’re delving into a few if them below.
- Current payment processes “just work”. Paystream Advisors’ 2017 ePayments Report states that the number one reason businesses cite for not moving to e-payments is the perception that current payment methods are working well. So, while issuing and sending checks may be inefficient and insufficient, many companies believe they have everything under control and are averse to changing a process that isn’t necessarily broken. In many ways, they cannot see the forest for the trees.
- Upgrading solutions is too expensive. Some organizations are unable to move beyond the sticker shock of virtual payment implementation costs. They neglect to factor in what they spend in labor on managing legacy payment methods and how much they could save by eliminating cumbersome and repetitive processes. The RPMG 2018 EAP Benchmark Survey estimates that, when compared to checks, Virtual Cards allow for an average administrative cost savings of $26.
- We’d lose control. When introducing more streamlined, paper-free workflows, it can seem like you’re missing critical steps and forfeiting decision-making ability. Automating payments, however, actually allows for more oversight and visibility into payments. Once you’ve put a paper check in the mail, you lose all track of it until your supplier cashes it and the funds are withdrawn from your account. With virtual payments, you have your finger on the pulse of where each payment is in the process at all times and how each one will affect your cash position.
- It will be too difficult to implement. Organizations may be wary of any project that involves an ‘implementation period’ or necessitates the involvement of IT. They may also have concerns about how digital payments will integrate with existing systems. Best-in-class payments providers will be able to provide you with an accurate overview of e-payment ramp up times and set a realistic and suitable ‘go live’ date. They’ll also be able to provide a solution that can fully integrate with your accounting software or ERP system without overburdening your IT Team.
- We don’t have time to learn and transition to a new solution. Reallocating an employee from managing paper checks to processing digital payment files can be anxiety inducing, as they will need to ramp up before feeling comfortable with new tools and processes. Since employees are embracing technology more and more throughout their personal lives though, they’re more adaptable and amenable to digital solutions in the workplace. These tech-savvy consumers translate to empowered employees who welcome new and better ways of conducting their work.
- We process too few invoices to warrant a new solution. Large companies with a high volume of suppliers can typically build a stronger case for e-payments. Small and midsize businesses (SMBs) who issue fewer payments, on the other hand, may believe there is no justification for process simplification. It’s worth highlighting the advantages of automation as a whole for these hesitant SMBs. Automation brings about heightened productivity, which allows businesses to achieve more all while maintaining the same number of employees. It makes them more agile and adaptable - qualities from which all businesses can benefit.