Should you let customers pay invoices by card and who pays the fee?

The Problem: Why This Matters

For businesses invoicing on terms, cash flow is a significant concern. Card payments can accelerate cash flow but come with processing fees ranging from two to three percent, which can erode profit margins on low-margin invoices. Businesses must navigate the complex landscape of surcharging, where legalities vary and customer perception is critical. Transparency is key, as undisclosed fees can harm customer relationships.

How Most Providers Handle It Today

Typically, providers in the accounts receivable space either default to card payments for their speed or rely on bank transfers to minimize costs. However, these one-size-fits-all solutions often fall short. Card-only options can be expensive, while bank transfers might delay payment. Moreover, when surcharging is applied, it can lead to customer dissatisfaction if not handled transparently. Many providers do not offer the flexibility needed to let customers choose their preferred payment method, limiting businesses' ability to optimize for both speed and cost.

ARPilot's Approach

ARPilot addresses these challenges by integrating both card and bank transfer payment options into a single payment link. This approach allows customers to decide how they want to pay, offering transparency and control over their transaction costs. By supporting both payment methods within the same platform, ARPilot offers businesses the agility to accommodate customer preferences and optimize their cash flow. The AI-driven platform ensures that each payment method is appropriately managed, with human oversight on all customer-facing actions to maintain transparency and trust.

Key Benefits and Measurable Outcomes

1. Flexibility and Control: ARPilot's dual payment option allows businesses to offer customers the choice between card and bank transfer, aligning with customer preferences and optimizing payment processes.

1. Cost Efficiency: By providing bank transfer options alongside card payments, businesses can significantly reduce transaction costs, preserving profit margins on thin-margin invoices.

1. Enhanced Cash Flow: Customers can pay the moment they open an invoice email, accelerating the cash cycle and improving financial agility.

1. Transparency and Trust: With human oversight on all payment actions, ARPilot ensures that customers are fully informed of any fees, maintaining trust and enhancing customer relationships.

1. Scalability: Whether handling a few dozen or thousands of invoices, ARPilot scales with your business, ensuring consistent and efficient payment processing.

FAQ

1. Should I allow my customers to pay invoices by card?

Allowing card payments can speed up cash flow, but it's crucial to consider the associated fees. With ARPilot, you can offer both card and bank transfer options, letting customers choose their preferred method while managing costs effectively.

2. Who pays the card payment fees?

With ARPilot, you have the flexibility to decide who covers the card payment fees. You can absorb the cost yourself or implement a surcharge, provided you adhere to legal and disclosure requirements.

3. How does ARPilot handle surcharges?

ARPilot ensures transparency by allowing you to clearly communicate any surcharges to customers before they make a payment, maintaining trust and compliance with disclosure rules.

4. Is it easy to switch between payment methods on ARPilot?

Yes, ARPilot provides a seamless experience for customers to choose their preferred payment method via a single link, enhancing convenience and satisfaction.

5. How quickly can I implement ARPilot's payment options?

ARPilot offers a quick setup process, with most businesses going live within days of connecting QuickBooks. This ensures you can start offering flexible payment options without delay.