The 21st century has ushered in a new way of exchanging money, and one of those methods is integrated payments. Specialists have been revolutionizing the way we pay, introducing cashless payments as one of the primary payment methods. As a result, the integrated payments industry has been thriving, thanks to people who are now switching to it.
Not only does integrated payments help regular people monitor the way they pay, but it also helps businesses monitor their cash flow efficiently. Let’s look at what integrated payments are and why it has become one of the most popular payment methods today.
What Are Integrated Payments?
Integrated payments are a way to seamlessly connect the accounting process and the way of paying. It allows businesses to connect their payment portals to their accounting system, minimizing cash transfers in the process. In addition, companies can monitor their cash flow and audit their earnings with lessened human error since the system performs all necessary accounting actions.
Credit card payments are much safer and easier since integrated payments ensure that all data transfers are highly encrypted and cannot be accessed by anyone outside the specified network.
Eventually, integrated payment processing allows businesses to focus on other vital operation processes and evolve into a more efficient system.
Who Needs Them?
Companies still using cash payments as their primary payment method could benefit a lot from using integrated payment processing. Not only would they be lessening handling physical money, but they would also be able to have a much more efficient accounting and auditing system.
Additionally, small businesses that are just starting and feeling overwhelmed with having a lot of orders for products or services can also benefit from integrated payment processing. They can just set up their integrated payment services, and they would be able to focus on packing and shipping orders to their customers.
Advantages of Using Integrated Payments
There are several benefits to having integrated payment services for a small business or a company.
1. Time saver – You would be saving time with accounting since all your payment information is already uploaded to your software and arranged accordingly. Once payment is made, you won’t have to manually input the information on your computer since the integrated payment system does it for you while you’re still handling the order.
2. Better customer experience – Your customers won’t have to wait in line for an extended period while putting their payment information in your system. Your integrated payment processing will handle that for you, allowing you to focus on your customers during the checkout process and finish the sale immediately and with no errors at all.
3. Better cash flow – You will be able to make faster deposits to your bank with an integrated payment system. Real-time updates will allow you to manage your money better and make your operations more efficient since you can also set up automatic payments for your business dues.
4. Stronger payment and data security – This benefits not only you but your clients as well. Electronic payment systems are subject to cyber-attacks, especially when you haven’t placed a strong enough firewall to block potential cybercriminals. Integrated payment providers make sure that the system is well-protected.
Your integrated payment system will protect your customers’ card information and bank information since data such as bank information, credit card information, and personal data will be highly encrypted.
IPS uses EMV, encryption, and tokenization in accordance with PCI-DSS (Payment Card Industry – Data Security System) to ensure that your information, along with your customers’ information, is entirely safe.
5. Lesser errors – Since integrated payment systems are done online, it lessens the need for a human accountant or auditor to input information in your accounting books manually. This means that there will be little to no errors like calculation mistakes, misplaced invoices, double entries, which means higher savings and better management.
Tasks like payment reconciliation and data entry will no longer be done by humans, eliminating human error and allowing you to keep your financial records intact.
6. Better tax preparation – Having an integrated payment system means that all your receipts and invoices are readily accessible. Your financial reports will be centralized, and your accounting will be automatic, which means that when the time for filing taxes arrives, you’re all set to go since your records are already in order. You can even export your information directly into the software for tax preparation, making it easier for you to transfer information.
What Are The Best Companies to Use For Integrated Payments?
There are several integrated payment providers such as Stax, Stripe, and Square. All you have to do as a business owner is find one that will provide for your needs.
Stripe has built-in developer tools and an API system. Stax has cloud management, identity management, access management and has high security. Square offers fast payment transfers, easy payment integration, and risk protection.
Cost
The cost of switching to integrated payments will depend on your provider since they charge different fees for their services. The best way to look at it is that you will be paying your integrated payment provider what you’re paying your human accountant or an auditor but at a much lesser price.
These integrated payment providers charge a small fee to take care of your payment security and your customers’ information, and it’s a small price to pay for long-term risk management.
Conclusion
Switching to integrated payments will help your business grow internally. You will be more efficient at handling your cash flow, and you will be better at accounting and auditing your finances. There is also less risk of human errors since the system will be handling all the information for you, placing them into their proper places.
Filing your taxes will also be a breeze with an integrated payment system since you will have all your financial information readily available. If you’re the type to worry about hackers and cybercriminals, integrated payment providers ensure that all your information is safe since they encrypt all your data.
With integrated payments, you will have less to worry about, allowing you to focus on what’s important: your business.
