Five Payment Strategies for Business Growth

Processing customer payments is one of a company’s most important operational tasks since it generates income. Payment technology not only streamlines processing but also improves cash flow. Further, these solutions meet consumers’ and businesses’ increasing demand for faster, more secure transactions.

These five business payment strategies will help companies gain greater control of payment systems and processes, while enhancing customer satisfaction and growing income.

1. Integrate payment processing across multiple systems.

   According to the Strategic Treasurer 2022 Global Payments survey, 58% of treasury and payments professionals say using multiple systems, including enterprise resource planning (ERP), customer relationship management (CRM), billing, and invoicing, is their primary challenge in managing payments.1
   
   Platforms that don't communicate and exchange information automatically establish data silos, limit visibility, create unfriendly user experiences and waste time. The seconds it takes to switch between applications to find an essential piece of data add up to hundreds of lost hours of productivity each year.
   
   Integrating customer, procurement, manufacturing, accounting and other operational data gives companies a more in-depth view of operations. In the case of product orders, for example, you’ll have a complete timeline from when materials are ordered, through manufacturing, to distribution and invoicing. If pricing questions arise, representatives won’t need to log into another program for details.
   
   Using multiple applications to store and access data comes with two additional potential pitfalls — an increased possibility of a security breach and outdated information.
   
   When payment systems are joined to other operational systems, receivables and payables are processed accurately and on time. There is no wasted effort or disruption from manual entry. Further, there is greater transparency, security and efficiency across the business.



2. Streamline the regulatory process.

   Twenty percent of companies say regulatory compliance will be among their top three challenges by 2025.2 Merchants and businesses that handle sensitive customer personally identifiable information (PII) and payment information must comply with data protection regulations across multiple jurisdictions. These standards include ensuring customer data is securely stored and only used for the purposes for which it was collected.
   
   Regulatory laws that apply can include:
   • The Payment Card Industry Data Security Standard (PCI DSS): This comprehensive law contains 12 exhaustive requirements for capturing, processing, storing or transmitting cardholder data.
   
   
   • NACHA Operating Rules: If your business accepts direct payments through the automated clearing house (ACH) network, you must comply with these standards for data security and protection.
   
   
   • The General Data Protection Regulation (GDPR): Those conducting transactions with EU-based customers must follow this framework for collecting, storing, sharing and deleting PII.
   
   
   • The California Privacy Rights Act (CRPA): Businesses serving customers in California must adhere to the state's guidelines on PII use, retention and collection.
   
   Partnering with a payment processor that understands and complies with data protection requirements ensures customer information is being handled properly. Integrated payment processing systems can automate, track, manage and secure customer data, ensuring regulatory compliance requirements are met. The right payment processor can also help businesses avoid fines and other penalties for non-compliance.



3. Strengthen payment security.

   Technology is becoming more and more advanced. But cybercriminals are also becoming more sophisticated and finding new and innovative ways to steal PII and payment data. Businesses that aren't careful in how they manage such information can end up losing a lot of money, as well as consumer trust.
   
   When companies don’t protect payment data, they are subject to regulatory fines and penalties. It's also not uncommon for customers to seek legal recourse against companies that mishandle their PII, and these cases often turn into class action lawsuits. For example, Target was required to pay $18.5 million in a settlement from the 2013 data breach in which more than 100 million pieces of credit card and personal information were stolen. While not all businesses have the same reach or exposure as Target, they aren’t exempt from experiencing the same consequences.
   
   Safeguarding data is imperative, and it has benefits beyond protecting companies from financial disaster. It can also help boost customer confidence. When customers know that their information is safe and secure, they're more likely to do business with that company. Eighty-one percent of consumers believe the way companies treat their personal information demonstrates how they’re viewed as customers.3
   
   Implementing fraud controls focused on detection, investigation, recovery, and prevention strategies is critical to protecting payment data. Scoring models also help to minimize fraud. Businesses should ensure payment processing vendors offer comprehensive security features and provide 24/7 support in case of security incidents.



4. Reduce chargebacks and fraud.

   Chargebacks occur when customers dispute transactions on their credit card statements. Fraud happens when criminals use stolen credit card information to make unauthorized purchases. The two meet in instances of “friendly fraud,” when consumers make purchases on their own cards and then dispute them after receiving the goods.
   
   Both chargebacks and fraud can be very costly to businesses. In addition to losing revenue from the purchase, businesses must also pay to process the chargeback and investigate the fraud, at an average loss of $3.75 for every $1.00 of fraud.4 Between 40% and 80% of chargebacks are fraudulent.5 At an actual cost of approximately $240 per $100 transaction, chargebacks cost businesses $125 billion.6
   
   Point-of-sale and payment systems with embedded security technology reduce chargebacks and fraud. Many offer real-time fraud monitoring solutions that detect suspicious activity, helping to prevent incidents before they can cause damage. Chargeback management software can monitor for potential incidents, oversee time limits and enable accurate, timely responses. Companies using these strategic payment systems with fraud detection technology reported an average of 27% in reduced chargeback fraud.7



5. Improve customer loyalty.

   When there is constant change, consumers look for stability and consistency. They want to be appreciated, and they want companies to be there for them through good times and bad. When customers receive this type of treatment from the companies they patronize, it builds loyalty.
   
   Personalized experiences are crucial to brand loyalty as, over the years, consumers have made it quite clear they don’t want to be viewed as random numbers. Besides securely processing transactions, payment processing solutions can be used to send customized messages, as well as help customers track spending, account balances and more. Tracking customer purchases and offering points rewards, discounts or other incentives for their continued business also helps to build loyalty. Conversely, 37% of customers who experience bad service will take their business elsewhere.8
   
   Word of mouth (“WOM marketing”) is one of the leading ways to grow your business. When customers feel loyal to a brand, they’re more likely to recommend it to friends and family. The explosion of social media has expanded WOM marketing’s reach, making it even more powerful. Seventy-one percent of respondents in a recent survey referred friends and family to a brand with whom they've had a good interaction on a social platform.9

If you're looking for a comprehensive payment solution that integrates multiple systems and facilitates company growth, we can help you get there. For more information, simply complete a short form and a Synovus Treasury & Payment Solutions Treasury Consultant will contact you with more details. You can also stop by one of our local branches.