Many businesses rely on the convenience of credit cards to handle B2B payments, and the trend is on the rise. However, the business accepting the credit card often feels the squeeze of rising processing costs encroaching on their already thin margins. More cost-effective and convenient payment methods are available and businesses are looking for ways to transition their clients to them so that everyone wins.
In this article, we’ll examine the now very common practice of surcharging B2B credit card transactions. We’ll share how our Compliant Surcharge Automation makes it easy for businesses, including those that use Microsoft Dynamics 365 Business Central, to pass fees along to their customer while encouraging them to use lower-cost options. We’ll also take a look at how one company benefitted from significant cost reductions and operational efficiency gains after implementing our Compliant Surcharge Automation integration.
Credit Card Surcharge Made Easy in Dynamics 365 Business Central
A Surcharge Strategy for credit card acceptance is an innovative solution that empowers businesses to offset expenses associated with processing costs. This strategy involves passing on a small fee to customers who choose the convenience of paying with a credit card.
Unified A/R is a leading provider of accounts receivable technology that has transformed the way businesses get paid and how they manage credit card acceptance costs. Our modular solutions integrate with your ERP and provide the features and benefits to meet your needs:
- Automated Surcharge Calculation. Unified A/R automates the entire surcharge process. Rather than your team manually calculating credit card processing fees, we automate it for you and display the surcharge amount to your customer for complete transparency.
- Offer No-Cost and Low-Cost Alternatives. At the point of sale (POS), your customers are fully informed of the surcharge cost but are also presented with the option to switch to no-fee or low-cost payment methods such as ACH/eCheck or debit cards. This flexibility ensures customer satisfaction while optimizing your cost structure.
- Data Security and PCI Compliance. We prioritize the security of your data and your customers’ information. Our cloud-based technology employs state-of-the-art data security measures, including tokenization, to safeguard sensitive data. Fraud management tools and algorithms adapt in real time to detect and deter fraudulent activity, ensuring a safe and secure payment environment.
- Enhanced Customer Service. By offering 24/7 online self-serve payment options, Unified A/R enhances your customer service capabilities. Clients can make payments at their convenience, increasing overall satisfaction.
- Turnkey Compliance. Because surcharge rules can change, our technology evolves and updates in real-time to keep you compliant with the latest regulations so you can focus on growing your business.
- Expert Consultation and Support. We provide dedicated consultation on a first-name basis from the initial conversation through the lifetime of the relationship. Our clients can access 24/7 customer service from U.S.-based experts to ensure a smooth and successful experience.
The Duncan-Parnell Success Story: Outstanding Cost Savings Plus Efficiency Gains with Compliant Surcharge and AR Automation
Duncan-Parnell’s journey toward cost reduction and improved profitability began with the implementation of Unified A/R’s accounts receivable solutions. Their primary goals were to reduce A/R expenses related to customer payments made via email or phone and to address the drain on personnel resources due to manual workflows for invoices, checks, and payment reconciliation.
John Ledford, Director of IT at Duncan-Parnell, emphasized Unified A/R’s role in a smooth and secure changeover during the implementation process. Unified A/R seamlessly integrated with Duncan-Parnell’s existing ERP, ensuring a disruption-free transition.
The Surcharge Strategy
Windy Sharp Roy, Director of Accounting at Duncan-Parnell, highlighted the challenges they faced with rising credit card acceptance costs. To tackle this issue, they adopted a Surcharge Strategy with the guidance of Unified A/R. This strategy automatically applies compliant surcharges when their customers opt to make credit card payments, offsetting the associated transaction and processing costs. The technology also keeps Duncan-Parnell compliant with state regulations and card brand rules, providing intelligent fraud management for added security.
The impact of Unified A/R’s Surcharge Strategy was nothing short of remarkable:
- 94% Reduction in Credit Card Fees: By implementing surcharges, Duncan-Parnell significantly lowered the costs associated with credit card payments.
- 87% Reduction in A/R Processing Expense: Manual A/R processes were automated to be more efficient and cost-effective.
- 84% Migration to ACH/eCheck: When presented with the option, their customers willingly choose lower-cost payment methods, reducing spend for themselves and for Duncan-Parnell.
Simplified Client Experience
Duncan-Parnell’s digital transformation not only reduced costs, but also simplified the entire order-to-cash experience for their customers and their own team:
- Digital, Smart e-Invoices and e-Statements streamlined communication with their customers and eliminated paper-based processes.
- Online PayNOW Tool gave their customers the option to make self-serve payments with low-cost ACH/eCheck, credit cards rather than paper checks, or debit cards, increasing satisfaction and efficiency.
Duncan-Parnell also noted that the implementation of Unified A/R resulted in a 30% increase in back-office productivity. With Smart e-Invoice technology and automated email reminders, the need for manual collection efforts decreased significantly.
Online Payment Acceptance 24/7
Unified’s PayNOW solution empowered Duncan-Parnell’s customers to access invoices and make secure e-Payments from anywhere, on any device, at any time – further improving the client experience.
Duncan-Parnell’s journey toward digital transformation and cost reduction through credit card surcharge demonstrates the significant impact that A/R Automation can have on a business’s bottom line. Unified A/R not only helped them reduce costs but also improved customer satisfaction and operational efficiency.
Transform Your Business with Unified A/R and Dynamics 365 Business Central
For those who already use Microsoft Dynamics 365 Business Central,
If you’re looking to reduce credit card fees, free up your team’s time, and improve your order-to-cash process without significant capital outlay, Unified A/R is a compelling solution. It comes with complimentary expert consultation, simplified implementation, and trusted expertise to help your business thrive.