Many companies make decisions about partnerships and new technologies based on cost-analysis breakdowns. Since most strategic business goals focus on generating revenue, this makes sense. But sometimes choosing the least expensive option does not always offer the best long-term benefits.
Selecting a reliable payment platform, for example, can affect the way your business runs for a long time. If your business chooses your banking institution to solve its payment issues, it may cost less up front but may cause problems down the road if you decide to switch banks. When choosing a payment platform, based on this fact, it is a better idea to opt for a bank-agnostic payment platform. With better flexibility and improved control, your business can quickly make financial changes and avoid payment delays.
Payment Platform Options for Businesses
As more and more businesses are processing payments or selling goods and services online, banks have begun capitalizing on digital payment services. There are definite benefits of processing payments directly through your bank, including fast error resolution and heightened protection. Many banks even offer small business services, making it even easier for businesses to adopt digital practices and connect electronically with vendors and customers. These AP services, like automated invoice processing, mobile check deposit, and digital bank reconciliation, are offered by both banks and third-party companies. These services come at a fee for bank account holders, which often cost less than what is offered by third party companies.
More Than Cost: Choosing a Long-Term Payment Solution
Cost is an important factor when deciding between choosing services through a bank versus a third-party company. But regarding long-term investment, there are more possibilities to consider beyond cost. Though these AP automation services are similar, the long-term scalability and flexibility are not the same. Consider the possibility of needing to make financial changes as your business grows. If you go into business with your bank, you may be stuck with them as your payment platform for a long time.
Changing your services can be tricky and cause more headaches than it is worth. Your company even runs the risk of making late payments or incurring additional fees while waiting for your services to transfer over to another platform. The ease with which your company can make changes should be an important factor in your payment plan selection. For this reason, it is wise to consider opting for a bank agnostic payment platform for your AP business needs.
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What It Means to Choose a “Bank Agnostic” Platform
Bank agnostic in terms of payments refers to a payment platform that is not directly linked to a bank. Payment or invoice services offered by banks require companies to go into business with their bank, which is fine if your company never intends to change their financial structure. The problem with going into business with your bank is that you cannot change those services if you decide to open a business account with another bank to send or receive payments.
For companies that pay multiple vendors and process hundreds of payments each month, switching your payment platform can take a long time. By opting for a bank agnostic payment platform, your company can open, close, or switch bank accounts as often as you want. Since the platform is not directly connected with one bank, payments connected to an account can be moved or altered quickly. Your bank may not be so helpful in switching services, but a third-party organization does not have any ties to one bank or another, making them a neutral party.
How Bank Agnostic Platforms Offer Increased Control and Flexibility
Choosing payment platforms through your company’s banking institution can offer protection and automation at a reduced cost, but if your company has multiple accounts across banks or credit unions, or if you decide to change financial institutions, you may find yourself going through a lot of work to get your payments in order.
While you work on setting up a new payment platform, your vendors are stuck waiting. When companies choose a third-party payment platform, they can make changes to their bank or accounts at any time. If your company decides to make major changes to their bank or accounts, there is no hassle in adjusting payment options to fit the new choices. In fact, your company could switch banking institutions and after only one business day be up and running again.
With a bank agnostic payment platform like ACOM’s, your company receives increased flexibility and more control over payment options.