In the earliest days of commerce, most people used a barter system. You’ve got goats. I’ll trade this many bushels of grain for one of them.
A lot of business owners likely yearn for a return to those heady days of haggling in an open marketplace. After all, that would free them from the headaches of modern payment processing.
Today’s business owners must juggle cash, credit cards, debit cards, and even checks. It can make for a convoluted grouping of technologies that don’t always play nice together with your accounting software. This is why integrated payment systems keep gaining ground.
Not sure if integrated payments are right for you. Keep reading for the key benefits of integrated payment systems.
What Is an Integrated Payment System?
Before jumping into the benefits, let’s break down the essentials of integrated payment systems. These systems work by doing away with things like manual reconciliation between physical receipts and digital records. They also, when done right, provide data directly to your existing bookkeeping or accounting system.
Right at the top of the what to love about integrated payment systems list is that they speed up payment processing. In most cases, you see automatic approval of credit card transactions. That means you get your money faster, which makes every business owner happier.
Less Data Entry
Reconciliation of those physical receipts can add up to a lot of data entry with older systems. Plus, you need someone physically at a workstation and getting paid for all that after-close work. The automated processing largely eliminates the need for that data entry and employee time, unless something goes catastrophically wrong.
You can also talk over the reduced data entry with a potential integrated payments partner.
One of the reasons why many business owners dislike credit card transactions are the associated fees that cut into their bottom line on every purchase. While integrated systems don’t eliminate those fees, you often pay a lower per-transaction fee when processing through integrated payment systems.
Limit Human Error
Another of the big reasons for integrated payment systems is that they limit human error. Assuming that everything in the original transaction belongs there, the data should never pass through a human hand again. The transaction, processing, and record should all go directly to your accounting software unchanged.
There is no option for human error because the system transfers all the transaction details.
Is an Integrated Payment System for You?
The real value of an integrated payment system is that it works with other technology to make your life easier. If you don’t use much software or run networks in your business, a system like this might not work for you.
For almost everyone else, though, the ways that integrated payment systems streamline your processes, reduce human error, and limit costs are a boon. Plus, who doesn’t love the idea of less data entry?
Looking for more financial management tips for your business? Check out the post in our Business & Finance section.