Payments are critical to any business. Perhaps even more so for small businesses, for which cashflow management may make the difference between a business that succeeds and one that struggles.
Typically managing tight cashflows, smaller companies seek prompt payment for the goods and services they provide. Yet up until recently their options have been limited and often come at a cost. This year's launch of the Federal Reserve Bank's real-time settlement system FedNow aims to alleviate this by making real-time capabilities more accessible to the small- and medium-sized banks that serve the majority of our nation's small business customers.
How FedNow will impact small businesses' ability to receive payments in real time remains to be seen, as it first requires the participation of their banks. Which means those banks will have to make operational adjustments and technological investments, as well as implement relevant fee structures for real-time services. And, let's be honest, our heavily regulated financial institutions are not known for moving fast.
However, for small businesses that want faster, same-day payments from their customers, options already exist that don't require new technology investments, system reconfigurations or additional fees. All it requires is a simple change of process: moving away from paper check processing to digital payments processing.
Businesses that already accept credit cards for bill payments are already equipped to transition from paper check processing to digital payments processing by way of virtual cards. A virtual card works just like a traditional credit card except that it is a one-time use card that leverages a unique 16-digit number for an individual payment. Working with a bill payment processing solution that converts paper checks into virtual cards, businesses can receive funds immediately and eliminate the week-long time-delay and increasing fraud associated with paper checks.
So how does a business get started with same-day digital payments processing? There are many payments processing companies, each with their own solutions and fee structures. At BillGO, because we have built our business around helping financial institutions streamline the bank bill payment process, we work directly with banks to provide digital payments processing at no additional cost to businesses that are receiving payments through a customer's bank bill pay service. By enrolling in our BillGO Exchange, businesses become a part of BillGO's electronic biller directory and can then process same-day digital bill payments immediately and securely through our easy-to-use biller portal.
Considering a key benefit of faster payments is greater control over working capital and cash flow, it doesn't make sense for small businesses to wait for their banks to offer a solution when digital payments processing solutions already exist. Simply shifting from paper check processing to digital payments processing empowers small businesses to maintain the same level of service, support and quality their customers have come to expect while allowing them to meet financial obligations without having to cut corners or compromise their offerings. For small businesses that operate closer to the margin, being able to accept and process bill payments within minutes - and down to the last minute - can be game-changing.
Discover How BillGO Exchange helps office solutions provider Copy Fax improve cashflow and workflow efficiencies.
