The Future Beyond Credit Card Fees

Jun 22, 2023 by Zazil Martinez

Credit card processing fees can significantly impact profits in today's highly competitive markets. With struggling economy challenges and the need to attract skilled professionals, businesses are shrinking their profit margins. It's time to move beyond credit cards and explore alternative payment methods.

Excessive fees for processing credit card payments often hurt B2B profits. These fees significantly impact businesses' earnings, especially in highly competitive markets. When you factor in the challenges of a struggling economy (rising prices, disruptions in global supply chains, employees quitting their jobs, and the need to offer higher salaries to attract skilled professionals), it's no surprise that profit margins are diving.

Credit cards were once innovative, replacing outdated payment methods like paper checks and cash. But it's time to move beyond them. Reducing credit card transactions is the best option for businesses, but companies may be reluctant as they don't know how to get off this payment method.

This article will discuss a series of questions and answers to shed light on the subject. By the end of it, all doubts will be dispelled, and adopting new payment methods outside credit cards will be the next step for the growth of your business.


Is There a Smarter Way to Handle Business Fees Than Accepting Credit Card Charges?

Using credit cards can create a frustrating cycle: the more you rely on them, the more you pay processing fees. As a business expands and encourages customers to use credit cards, the volume of transactions will also increase. This leads to higher processing fees, causing more difficulties when reconciling payments and making it harder to scale your business.

With an affordable subscription model, businesses can easily predict expenses. As transaction volume grows, the monthly cost remains constant while AR costs decrease. As sales go up, companies can enjoy the benefits of increased revenue without recalculating their fees based on higher costs.


Say Goodbye to Credit Cards: Discover the Power of Payments-as-a-Service (PaaS)

Businesses shouldn't have to give up a part of their sales in transaction and convenience fees.

With Payments-as-a-Service (PaaS), the traditional payment system changes. Instead of paying fees for each transaction, businesses can use a subscription-based model. It's like having a monthly membership –like Netflix– where paying a fixed amount grants access to a wide range of content. With PaaS, you pay a flat monthly rate to use the software without losing a part of each transaction in fees.

Paystand has a system to cut those fees. The Paystand Bank Network lets businesses enjoy digital payment options like instant fund transfers, e-checks, and credit cards, for a small monthly fee. Costly transaction charges are over; start collecting revenue without penalties.


Simplify Payment Reconciliation: From 36 Hours Monthly to Zero

Manually matching and organizing payments takes up a lot of time, mental effort, and valuable resources. Accounting departments spend 36 hours reconciling payments every month. If there are any manual entry errors, discrepancies, or other issues, that time increases.

Additionally, reconciling each transaction with its corresponding fee can be difficult if credit card statements don't provide a breakdown by invoice number.

In our fast-paced, digital era, you don't have to waste 18 days reconciling payments and transaction fees every year. There are software and alternative payment methods that can help ease that burden.

Investing your employees' time in monotonous and repetitive tasks is not beneficial for any business. By embracing automation and reducing credit card transactions, you can cut the time needed to complete them.

At Paystand, we handle all your payment tasks effortlessly. Our system automatically applies the cash to each payment and sends deposit reports to the bank. We simplify the entire payment process, from creating invoices to reconciling accounts. This saves you time and lets your team focus on important strategic work.


Unleash the Power of Modern B2B Payments

Paystand helps companies cut transaction costs while providing solutions like automation, payment acceleration, blockchain-based Assurety, and many payment methods for a customized experience.

Our Paystand Bank Network, Least Cost Routing Technology, and Payer Incentives module enable you to realize several key benefits:

  • Speed up cash flow to the business by offering a fully digital payment process.
  • Negate labor costs while increasing speed and efficiency with automation.
  • Decrease manual entry by 99%.
  • Reduce DSO by 20-80%.
  • Faster time to cash by 50-75%.
  • Easy reconciliation.

Grab your complimentary ebook and delve into the future of B2B payments. Discover why abandoning outdated payment methods is the optimal choice for your business.