What is Straight Through Processing?
Straight Through Processing (STP) is a process that financial companies use to speed up their transaction processing time. The main point of STP is to allow companies to have the same information be streamlined through a process across multiple points. This limits the manual process for employees of having to keep entering the same information over and over again or checking to ensure a transaction fully processed, which raises chances for errors. Instead, STP allows companies to share information electronically in order to share information in a quicker, more secure and effective manner.
Challenges of Implementing STP
With companies using a variety of different programs for different needs, ensuring all of the systems involved in the STP process work together and transfer information smoothly without delay Is often the biggest challenge when implementing STP. Depending on the information being relayed, many different programs may be required to help transfer the data and information correctly. Setting up all of those different programs to work together in one seamless structure can be quite the challenge and can take some time and coordination to get setup properly. Many smaller customized features are often added after the main STP processing framework is already in place, so it may take some time before all of your company’s needs are integrated.
Why STP can be Good for Your Business
The future of business is adopting STP because the speed and cost savings provide companies more opportunities to grow and focus on your business.. STP provides many vital benefits to business including the virtually instant transfer of information, automation of processes, and less risk for errors. The instant transfer of information and payments allow companies to spend less time waiting for snail mail and wire transfers. Since STP is all electronic, besides speeding up data and money transfers, STP can also automate processes, allowing companies to speed up the Time to Cash process by automating often timely manual processes. In addition, with the instant transfer and automation, you leave less room for errors in the process, which in turn will save your company money and increase productivity. Analyzing a move to STP also gives companies a chance to analyze what processing are working and not, which provides a great time to change company structure and job functions to streamline business processes.
Why STP can be Good for Your Customers
While STP can help your company grow and become more productive, it also provides a way to offer your customers a better experience. Providing customers more security with electronic over manual processes, as well as shortening the length of the transaction process, customers will feel more confident doing business with your company. A business with a strong STP structure will make it so their employees can find information easier, answer customer questions faster, providing a more personal customer experience.
PayStand + Straight Through Processing
Choosing software that works with other software in your STP process is important. With PayStand, your company can process payments securely and quickly electronically and easily automate your manual payment processes. Your company can process payments from credit/debit cards as well as ACH and eCheck easily. Plus, you can prevent high credit card processing fees from cutting into your ROI by paying wholesale credit/debit card processing fees or encouraging your customers to pay with ACH and eCheck (as low as 35 cents a transaction). In order to automate your manual processes, you can embed payment buttons within invoices, allowing customers to pay instantly on a custom-branded Billing Payment Portal. You can also connect PayStand with popular accounting software like Xero and NetSuite to automatically update invoices when they’re paid. Plus with PayStand’s Fund on File and Recurring Payments, you can securely save your customers’ payment information once for use on future invoices. It’s time to adopt STP processes so you can start focusing on growing your business and start automating your accounts receivable process and get paid faster.
For more information on how PayStand can help your business simplify their finance processes, don’t hesitate to contact us today.