Organizations in every industry closely monitor their financial transactions. Billing and accounting companies come in handy to keep these systems streamlined. Statistics show that there are 88,652 accounting services companies in the U.S. as of 2023. These companies ensure that financial transactions get recorded, classified, and summarized accordingly. Additionally, the billing firms help with issuing invoices and collecting payments.
In the past, most firms relied on manual payment collection methods such as paper checks sent by mail. However, more consumers have switched to digital payments, and data shows that the global digital payments market segment will hit $15.17 trillion by 2027. Consumers now prefer contactless payments; therefore, these companies must adapt quickly.
To provide these online payment services, billing and accounting firms are forming partnerships with payment processing firms. This blog post will examine the benefits of these payment processor partnerships, the typical solutions, factors to consider when choosing a payment processor, and some real-life examples of such partnerships.
The Benefits of a Payment Processor Partnership for Billing and Accounting Companies
Billing and accounting companies need a payment processing partnership to streamline their operations. Here are some of the benefits these companies can leverage:
One of the most significant advantages of online accounting and billing is that you spend less. For instance, you don’t have to spend money posting paper bills to your customers, and your clients can make payments via reliable online portals. Additionally, you don’t have to employ as many people to follow up on monthly payments; customers can set up recurring billing.
Modern digital payments are faster and more secure. However, with increasing fraud cases, you need to use billing and accounting technologies that detect and prevent fraud while adopting faster payment systems. Partnering with a payment processor gives you access to advanced technologies such as tokenization and encryption, which protect your financial information.
A reliable payment processor follows PCI compliance and Nacha regulations to protect customer data. Therefore, you don’t have to worry about data interference.
Improved Processing Speeds
Compared to checks that take days or weeks to process, digital payments are instant. Nacha is working on same-day ACH payments to increase the processing speeds. Therefore, if you want to shorten the time it takes to process invoices and receive payments, consider partnering with a payment gateway with capabilities that expedite these transactions.
Enhanced Customer Experience
A McKinsey study shows that about nine in ten Americans use some form of digital payment. Billing and accounting companies can keep customers happy and loyal by providing such payment technologies. Partnering with a payment processor allows you to accept payment options such as mobile wallets, credit cards, and SMS payments.
The Common Payment Processing Solutions
- Hosted Payments
- IVR Payments
- ACH Processing
- Credit Card Processing
- Email Invoicing
- Virtual Terminal
- PCI Scope
Factors to Consider When Choosing a Payment Processor Partner
A payment partnership needs to be a perfect fit for your accounting and billing company. Before choosing a payment tech partner, here are some factors to pay attention to:
Compatibility with Existing Systems
Most accounting and billing firms have existing business software and tools to process invoices and track customer payment information. Therefore, if you want to get into a partnership with a payment processor, you must choose one that aligns with your current systems.
For instance, if you use QuickBooks, you should choose a provider that offers QuickBooks plugins that are highly secure. This allows seamless integrations to make accounting tasks such as invoicing much easier.
Digital payments reduce administration and postage costs since the processes are automated. Since the transactions are faster now, accounting and billing companies won’t pay a high processing fee. Additionally, self-serve hosted payment portals make it easier for customers to pay their bills from home.
You also need to partner with a payment processor with a reliable customer support team. You need these services in case you need assistance with the payment system at any time. Before picking a partner, confirm the availability of their team.
How Sage and Zoho Partnered with PayPal for Payment Processing
Billing and accounting firms have successfully partnered with payment processors to make it easier to accept payments. A good example is Sage, which partnered with PayPal to provide its customers with secure online payment methods. Thanks to this integration, the companies could get paid more quicker, improving cash flow.
Sage added a “pay now” button to their invoices, making it easy for customers to make payments via PayPal.
Zoho has also made billing easy by working with payment processor PayPal. This partnership makes it easy to accept payments in different currencies. Additionally, it’s now easier to track payments from all customers, get payment details, and reconcile payments on Zoho.
The system is secure and PCI compliant; therefore, customer financial information is encrypted. Additionally, the efficient recurring billing solution makes it easier to manage Zoho subscriptions.
How to Determine If a Payment Processor Partnership Is Right for You
If you run an accounting or business firm, you need to choose a partnership that works well for your business. Here are the ways to determine if this is the right partnership for you:
- Review your business goals: The payment processor must align with your business goals. For instance, if your objective is to offer multiple payment options to your customers, you should choose a partner that allows you to achieve this goal.
- Confirm the integration capabilities: You should check if the payment processor can integrate with your existing accounting and billing systems before choosing it for your business.
- Evaluate the security protocols: You need a payment system that’s highly secure to keep the financial data safe. An ideal partner will have the right security measures in place.
How Billing and Accounting Companies Can Get Started with a Payment Partnership
Billing and accounting companies need a payment processing partnership with a reliable provider like iCheckGateway.com. Partnering with a Nacha-Preferred Partner comes with benefits like increased security, a streamlined payment process, increased customer satisfaction, reduced costs, and an improved bottom line.
You can improve your payment processor today by partnering with iCG. Schedule a call with our team today!
MORE TAGS:ISVs, Partnership, Independent Software Vendors, Recurring Payments