B2B Virtual Payments Automate AR and AP, Boost Security

October 4th 2022 11:00:00 AM

Modern business is shifting to automation in more of the ways it conducts itself. Consumers have become comfortable using electronic transfers to pay for goods and services in the B2C space. It shouldn’t come as a big surprise to learn that B2B virtual payments are becoming more common. Electronic payments reflect current business trends. They also automate a company’s accounts receivable and payable processes, reduce fraud, and increase security.

Pandemic Pushed Sales Teams to Go Digital and Remote

The global COVID-19 pandemic had an impact on the way companies conduct business with each other. Business customers had no choice but to turn away from interacting with sales reps personally to using digital means for placing orders.

Many companies were forced to shift to either a partially or fully remote sales model. Most B2B decision makers found this model was “equally or even more effective” than they worked with before the COVID-19 pandemic (McKinsey.com).

Common B2B Payments Industry Trends

The following are some common trends in the B2B payments industry:

• Paper Check Use is in Decline

According to the Federal Reserve, the volume of commercial checks written in 2020 was 3,767 (measured in millions of items). In 2015, the volume of reviews written was 5,453. 

Paper checks aren’t likely to completely disappear soon. However, companies and their customers will continue to move away from this payment method. 

• AR and AP Automation Increasing

During the Covid-19 pandemic, processing payments and generating invoices with strict lockdown rules in effect was challenging. Many businesses introduced AR and AP automation to reduce invoicing and payment delays. 

• Businesses Switching to Mobile Devices

Mobile devices have been used in the B2C market for years, and the B2B side is coming on board now. 

Companies delivering products to customers can benefit from a B2B virtual payments system. Customers can order from their sales representative, contact customer service, or place an order online.

Benefits of Switching to B2B Virtual Payments

There are several benefits to switching to B2B virtual payments, including the following:

• Cash Flow Improves

When a business automates its AP and AR processes, it is much easier to track cash flow patterns. A manager can generate reports showing which customers pay promptly and those who pay late. The business can deal with those relationships appropriately. 

Invoicing apps make it easier for customers to pay their invoices. They can click on it to log into their account rather than having to cut a check and put it in the mail. The money gets into the company account sooner to improve cash flow. 

• Lowers Risk of Fraud and Increases Security

Recently, criminals have been focusing on a particular type of fraud: bank check theft. The thieves target personal and US Postal Service mailboxes to steal checks and sell them on social media sites. The illegal buyers alter the original payee’s name and the check amount to rob the victim’s bank account. In some cases, the victims of this crime find they are missing thousands of dollars.

Accepting B2B virtual payments lowers the company’s risk of being targeted by this type of fraud. It is a secure payment method that transfers funds from one bank account to another without revealing banking information between the parties. 

• Saves Time and Money

Adopting B2B virtual payments means that a company will devote less time and money to activities like processing checks. Its customers don’t need to write them; the business doesn’t need to deposit and reconcile them.

It’s much more efficient for the Accounting Department staff to focus on activities other than inputting payments. Accounting software can record payments made electronically and update the company’s records automatically. 

Scanco’s Payments Automation Solutions Let You Pay and Get Paid Faster

Scanco Payments Automation for Sage ERP is the B2B virtual payments solution your business needs. This suite of products will help you pay your suppliers and process your customers’ payments more quickly and efficiently. Automate your payment functions to save time and money while keeping your transactions secure.

Scanco AP Automation for Sage 100

Would you like to avoid dealing with paper checks? Scanco AP Automation for Sage 100 integrates with your B2B accounts payable function. You get a digital, cloud-based system that your team members can use to pay your suppliers electronically and securely.

We know you like flexibility when making payments. Scanco AP Automation for Sage 100 gives you the option of paying your suppliers using any of the following methods:

• ACH Plus
• eChecks
• Virtual Payment Cards

Scanco AR Automation for Sage 100—Merchant Account Services

Is getting paid faster a priority for your business? Scanco AR Automation for Sage 100 (“Scanco Payments Automation”) makes it easier and more convenient for your customers to pay their invoices. It’s a digital payment system that allows your customers to pay their invoices effortlessly.

Scanco Payments Automation simplifies your AR process. Customers and sales representatives can handle the payment process independently without the Accounts Receivable Department intervening. Your sales team can take EMV credit card payments using their mobile devices, and your company receives the payment more quickly.

This system uses EMV cards (the “chip card” technology) for secure payments to reduce merchant liability. An EMV card is so secure that it cannot be read by cybercriminals, even if they could breach the system. Your customers can confidently use Scanco Payments Automation using the convenient, cloud-based, click-to-pay portal.

Once the customer makes a payment, they receive a confirmation by e-mail that includes a sales order and an invoice number. Your AR Department stays up to date with advanced settlement reporting.

Would you like to discover more about our payments automation solutions and how they can help your business? Contact us online or call (330) 645-9959 to make an appointment with a Scanco Solutions Expert today.