As more companies rapidly increase their businesses in scope and size, the need to cover more payments related to having staff and teams operating all over the world, hiring vendors in various countries, and expanding the use of services and products across a wider platform becomes a critical component of operations for businesses today. Handling what becomes known as a ‘mass payments process’ quickly becomes a highly complex and laborious task.
There are different currencies, languages, and tax systems to consider, as well as other challenges associated with the technology and tools to facilitate an efficient process that reduces the time and resources spent on it. Other barriers to mass global payments include varied banking systems, different payment method preferences among those in the mass payment pool, and ongoing regulatory changes. After all, there has to be a better way to handle mass payments outside of just hiring more people.
Barry Dowling, Co-Founder of TransferMate advises that “despite” the challenging financial environment that frames mass payments, there are still some best practices for managing these types of payments. The only way to effectively manage your mass payments process is to spend more time understanding the current framework and moving parts involved.”
This goes beyond just identifying barriers; you want to be able to identify how funds are received, where they go to when you send them, and how those on the other side of the transaction want to receive their money. While it may involve tens of thousands of people, you can still take actions to better understand their needs, including preparing an online or mobile survey to collect data that offers insights and helps you identify patterns.
Create Industry Partnerships
Because mass payments may require a wide range of technology to address the numerous issues, it’s a good idea to form partnerships within the international payments industry with companies that offer various solutions and with those companies who willingly integrate their tools together to provide you with a comprehensive process for securing, scanning, and handling mass transactions on a global scale. These partnerships fill in the gaps you may have had in your own mass payment processes not to mention they add a level of automation that can help you reduce the required resources.
Automate to Reduce Time and Effort
Look for the tools and solutions that provide you with the maximum amount of automation as this will reduce complexity plus minimize labor costs and human errors that often occur with common mass payment practices. Address multiple payment preferences within one mass payment process, including ACH, international ACH, wire transfer, and eCheck is an additional benefit to using a mass payment automation solution.
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Shop Around for Lower Fees
Part of a best practices approach to managing mass payments is ensuring you are not paying too much for the transaction fees. It helps to lower a company’s bottom line when you shop around on a regular basis to ensure you are working with a company that has the most competitive fee options available for your needs and budget. With more automated mass payment service providers entering the global industry, you have more power and influence to lower your fees.
Pay in Local Currency
Ensure you are using a mass payment system that allows you to pay in the local currency for individual transactions within each bulk payment you make. It’s essentially speaking their language and provides value in the form of convenience and lower costs for recipients of that payment because there is no conversion fee tacked on. This can go a long way to maintaining your relationship with them, differentiating your business, and building a positive brand reputation all over the world.
The global mass payments system is still in the throes of continual change as countries and financial institutions continue to work toward a standardized system and determine a regulatory framework. In the meantime, be prepared to make changes to your mass payments process as new technology emerges and as the overall environment’s ongoing evolution continues.
TransferMate specializes in mass payments, providing a global service solution for taking care of hundreds of payments at one time with a secure, compliant, and efficient process. TransferMate is becoming the provider of choice due to its ongoing investment and focus in products and regulation. TransferMate’s mission is to connect businesses across the world when sending and receiving international payments and disconnect the slow and fee levying banks in the middle.
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TransferMate services a large corporate client base across Europe, USA, Australia, New Zealand and Canada who can send and receive mass payments via our payments portal in addition to the option of integrating directly with a company’s accounting and treasury systems, including Xero, QuickBooks, Sage, and SAP.
To learn how TransferMate can help your business save money when sending mass payments internationally, speak to our team today on: US: 312 924 3737, Canada: 0647 724 2412, Ireland: 01 635 3700, UK: 0207 6599185, France: +33 9 75180 133, Germany: +49 800 182 0201, Spain: +34 91 187 5525.
Alternatively visit our website on www.transfermate.com.
This blog comes as a guest post from John Rampton, CEO of Due. John Rampton is an entrepreneur, investor, online marketing guru, and startup enthusiast. He is the founder of the online payments company Due. Follow John on Twitter at @johnrampton