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How much does it Cost to Send an Invoice? How to do it Digitally?

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Digital Invoicing

How much does it Cost to Send an Invoice? How to do it Digitally?

Did you know that 90% of all invoices are still processed manually around the world? So, how much do your invoices cost? While you ideally get paid every time you send out an invoice, you still need to figure out how to keep the expense of each invoice to a minimum. 

Creating, delivering, processing, and occasionally amending invoices can be a time-consuming procedure. Business leaders can be empowered to make sound data-driven decisions about optimizing their invoicing process by evaluating the cost of sending manual invoices. This allows their company to expand with confidence, knowing that they’re supported by a scalable invoicing automation technology that actually saves them money. 

Table of Contents

Manual Invoices: How much do they Cost?

Although sending manual invoices is costly, the majority of firms continue to do so. So, let’s take a look at the invoicing process’s costs. 

Direct Costs

With paper invoices, there are fees associated with the paper, ink, and mailing costs that must be incurred. Obviously, this will differ from business to business. With e-invoices, you avoid incurring these expenses. 

Indirect Costs

These are the expenses that are incurred in order to perform a task that includes an employee being compensated for packing paper invoices into envelopes, and the amount of time it takes you to enter all of the necessary information to generate an invoice, such as the client’s name and address. Manual invoicing is more expensive due to the additional manpower required to do the task. 

Hidden Costs

When it comes to invoicing, there could be a number of hidden fees to consider. Invoice lag results in a negative cash flow situation. It takes several days for a client to receive, examine, and respond to a bill that has been sent via snail mail. In the meanwhile, you are unable to pay an expense because you lack the funds, and you are assessed a late fee. Electronic invoices can be paid instantaneously because they are digital. Furthermore, what happens if there is a mistake? 

Examine the following six elements if you wish to assess your invoice processing costs:

  • The amount of time it takes to process and send invoices.
  • How many hours do you spend going over each invoice?
  • How much time do you spend looking for and fixing data entry errors?
  • Each invoice's shipping and storage costs.
  • How many hours of work have you lost due to invoicing?
  • How much revenue did you lose due to early-bird discounts or late fees?

Digital Invoicing

It’s no wonder that e-commerce enterprises are struggling to keep up with demand, especially because the E-commerce boom shows no signs of slowing down anytime soon. Working smarter, not harder, has never been more important, especially in light of rising customer expectations and constraints such as supply chain issues and transportation shortages. Digital invoicing may have been disregarded as many e-commerce enterprises attempt to expedite their procedures in order to keep up with demand. 

Digital invoicing is a more current method of reconciling online payments against invoices, which cuts down on the time and expenses of preparing, sending, and receiving digital invoices. It also eliminates the need for paper because you can send and receive invoices online, straight into your and your supplier’s accounting software. It’s merely one component of a comprehensive e-commerce strategy. 

What is digital invoicing, and how does it work?

The process of sending a customer a bill for goods or services by email or through your website is known as electronic or digital invoicing. Customers can usually pay their bills electronically if they receive an e-invoice. It can also refer to mailing a paper invoice with a request for payment via a website or secure payment form. 

Ecommerce shopping sites use a different form of electronic invoicing. A request for payment is launched by the business for goods or services that have been given or will be provided under agreed-upon terms using electronic invoicing. The customer initiates payment on ecommerce purchasing sites. 

What Does It Mean for Businesses?

The method for creating digital invoices differs depending on the service. Some systems let you send e-invoices directly from your accounting software, while others provide an invoice generating tool to help you get started. Specific functionalities differ depending on the processor or service. Some processors allow you to personalize the invoice‘s appearance, include logos, provide a discount for early payment, or automatically add late fees when invoices are past due, among other things. 

An invoice’s content is frequently customizable, and it may include information such as the customer’s name, a purchase order number if applicable, the invoice number and date, and payment terms. 

You may be able to set the invoice up as a one-time bill or as a regular bill. Setting up recurring billing is perfect for cases when you need to bill your customers on a regular, predetermined schedule, such as for memberships or monthly product “clubs.” With recurring billing, the client’s preferred payment method (typically a debit or credit card) is automatically paid at a pre-determined interval. Customers may view online payments, update their card and billing information, and more. Some providers offer a card update feature to prevent recurrent billing charges from being refused owing to expired or unusable cards. 

How It Works for Customers

When a customer receives an e-invoice, they will receive the information as well as the option to pay online. The link to pay online will usually be sent to a secure website through the gateway of your credit card processor. All of the information that the business provides in the invoice is visible to the customer, including the amount due, payment terms, due date, purchase order number, and any other items selected. Even though recurring billing is sometimes associated with e-invoicing, most recurring billing services do not send an e-invoice or request payment. Instead, payment is automatically debited to the client’s card or account. 

Is it possible for consumers to make changes to their e-invoice details themselves?

Customers are unable to update invoice specifics (such as the amount owed) because e-invoices are frequently converted to PDFs before being distributed. If there is a discrepancy, the customer can contact the company that sold the product or a third-party vendor (who is responsible for the invoice and billing service) to rectify the issue and request that a new invoice be issued with the proper information. 

When setting up a digital invoicing system for a business, what are the most important factors to consider?

Accounting and Digital Invoice Integration

Check for compatibility with your existing accounting software or systems when looking into how to send digital invoices with your processor or other invoicing provider. For easier reconciliation and record keeping, several e-invoice providers can link with QuickBooks and other accounting applications. 

Security

Security is vital for both your business and your customers when using any method of receiving online payments. Make that your digital invoice service (which is normally provided by your credit card processor) is PCI compliant and up to date on current security technologies. Tokenization, encryption, and other card security procedures are examples of security features. 

Costs

Depending on your processor, the cost of electronic invoicing will vary. Some processors provide the service free of charge in addition to your card acceptance rates and costs. Your clients won’t have to pay more for the convenience of paying by card through your digital invoice because e-invoicing is usually free. 

Final Thoughts:

Businesses can’t afford to ignore minor modifications to their processes in a time when consumer expectations are high, delivery costs are rising, and competition is fierce. Those who do not want to implement digitized processes risk slipping behind larger corporations and peer-level competition. 

 

If administrative activities are eating up too much time and preventing you from focusing on other elements of your business, digital invoices can help save a lot of time. Whether you’re an online shop, a third-party logistics (3PL) provider, or a warehouse, automating the invoice process is a cost-effective approach to communicating with clients about online payments and keeping track of your revenue. In a nutshell, digital invoices help with accuracy, metrics, time, and money benefits. 

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How can TraQPayments assist Merchants with the Setup of Recurring Payment Systems?

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How can TraQPayments assist Merchants with the Setup of Recurring Payment Systems?

Recurring payments are charges made by a merchant to a customer‘s credit card or bank account on a regular basis. These are frequently set up on a weekly, monthly, or annual basis, and are a convenient and efficient way for businesses to collect payments based on agreed schedules. Recurring payment processing not only saves time but also encourages customer retention and results in a more enjoyable purchasing experience for the customer. 

However, when it comes to completing these types of payments, payment service providers have a variety of methodologies and pricing structures to choose from. Let’s take a closer look at what recurrent payments are, what they are used for, and how TraQPayments can assist organizations with the setup of their recurring payment infrastructure. 

Table of Contents

What is a Recurring Payment?

A recurring payment is a kind of bill payment in which a company charges a customer for certain services on a predetermined schedule. To process recurring payments, the company must first obtain permission from the customer to charge a credit card on a regular basis. The company can then continue to collect scheduled payments until the customer opts out of the recurring billing arrangement. 

Recurring Payments in India

According to Reserve Bank of India (RBI) guidelines, customers must carry additional factor authentication (AFA) on all recurring payments made with their debit cards, credit cards, UPI, and prepaid payments instruments (PPIs). 

 

Customers can use any UPI application to allow recurrent e-mandates for recurring payments such as mobile bills, power bills, EMI payments, insurance, mutual funds, and loan payments, as well as paying for transit/metro payments up to INR 5,000. Customers must complete each mandate with their UPI PIN if the sum exceeds INR 5,000. 

For transactions under INR 5,000, AFA is a one-time process that works in the same way as OTP approval at the time of registration. (1080 × 1080 px)

Businesses profit from recurring payments because they provide a predictable stream of cash. Accepting recurring payments has a number of advantages. Here are a few of them:

Improve your Cash Flow

Accepting recurring payments ensures that your business will have a consistent cash flow into your bank account each month, and with a predictable cash flow, you’ll be better prepared to manage your business expenses as well as any unexpected costs. 

Receive Payment Quicker

Clients can set up a payment schedule and then let the billing software take care of the rest, eliminating the requirement for clients to pay according to the vendor’s schedules. Because there is no possibility of payments being forgotten or paid late, the payment procedure is expedited.  

No need to Track Payments

Recurring payments also mean businesses spend less time tracking payments from clients, which means they have more time to focus on their business rather than spending time on administrative accounting work. 

Billing Efforts are Minimized

Businesses don’t have to spend time each month writing invoices and processing customer payments. Instead, they only need to set up the initial payment schedule and then leave the rest to your payment software. You only need to get involved if an adjustment is needed in the charge amount or payment method. 

Enhances long-term Customer Retention

Allowing customers to set up recurring payments can assist businesses in improving long-term customer retention by saving them time and energy during the payment process. It’s also more likely that your consumer will view your service as a long-term investment, adding you to their regular budgets. 

Secure Payment Processing

For transactions under INR 5,000, AFA is a one-time process that works in the same way as OTP approval at the time of registration.

Allowing customers to set up regular payment schedules gives them additional peace of mind because this offers a more secure method of payment. Online payment services encrypt your clients’ data for a more secure transaction, and your clients can decrease the quantity of sensitive banking information in circulation by not making payments via mail. 

When Should Recurring Payments Be Used?

Recurring payments are ideal for businesses with clients who pay a set or similar amount on a monthly basis. Offering clients, the option of recurring payments makes sense in the following business scenarios: 

  • Clients are billed for a defined number of working hours each month by service-based organizations.
  • Software providers charge their customers a monthly licensing fee to utilize their products.
  • Businesses that provide monthly service packages to their clients, such as a freelance digital marketing consultant who charges a monthly fee for social media management.
  • Businesses that provide clients with monthly maintenance packages, such as a freelance webmaster who charges a fixed monthly price for client's website maintenance.

TraQPayments as a Recurring Payments Service Solution : Benefits of using TraQPayments

  • TraQPayments provides a business with all of the tools necessary to collect payments online while also providing the greatest possible client experience.
  • It provides the best support to its clients in terms of issue resolution where ticket, phone, and chat platforms are always available to help businesses every step of the way.
  • Every activity can be tracked owing to automated settlement tools that are included in the package. This allows you to see real-time data and information updates on your Dashboard, which can assist you in making informed business decisions in the future.
  • Businesses can benefit from instant activation, which allows them to activate and transact in as little as 2 minutes with a fully online onboarding process and minimal paperwork.
  • API is the driving force behind this software solution that enables enterprises to build at scale with complete API-based automation which eliminates the need for manual intervention.
  • TraQPayments offers pricing plans that are transparent and reasonable. Payments are made easier with TraQPayments' unique payment solutions, that offer software solutions to its clients at competitive prices.
  • TraQPayments enables businesses to collect payments using a centralized dashboard that keeps track of all transactions.

How can TraQPayments assist with Merchant Payment Schedules?

Merchants can schedule recurring payments via TraQPayments, which is an online payment system. The merchant must enter the customer’s information and designate a date on which the customer will commence payment. The platform will automatically keep track of the scheduled payments and will send out a notification to the customer on corresponding or pre-assigned dates 

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There are a number of methods that a business can use to collect recurring payments with our robust and well-equipped software. These include:

Conclusion:

Customers do not have to be physically or digitally present in order for recurring payments to be processed, which makes them one of the most convenient payment options. Instead, customers agree to share their payment information (usually a debit or credit card) with a business’s payment processor and to allow their card to be charged on a schedule that the business establishes with them. 

Setting up recurring payments with TraQPayments is a simple and uncomplicated process. We will assist you through the process of setting up your recurring payments systems for you. 

 

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Payment Gateway vs Payment Processor: What Is the Difference?

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Payment Gateway

Payment Gateway vs Payment Processor: What Is the Difference?

The number of people buying things online is increasing. Companies have begun to adapt to a more digital style of selling in the aftermath of the pandemic, and have begun to look for ways to enable digital payment methods in-store. In fact, 71 percent of merchants say that their annual online and mobile sales have improved, according to a survey conducted by American Express Digital Payments. How does one manage this transformation as a company? 

You must first have the proper procedures and processes in place before you can sell online. Finding and sourcing a payment provider, on the other hand, might be difficult, especially if you are new to the industry. You may have found yourself asking issues like these as the world continues to become a digital marketplace, and you struggle to move your firm into the future. 

What is the difference between a merchant account and a business account? What exactly is a payment processor, and how does it differ from a payment gateway? What choices do I have for giving alternative payment methods to my customers? Is it going to cost me money? 

These are all frequent payment-related inquiries, each with a detailed response. In this article, we’ll look at one of the most significant aspects of setting up online payments: the difference between payment gateways and payment processors. 

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What is the purpose of an online payment gateway?

Any business that accepts electronic payments online, regardless of scale, needs a payment gateway to make the process easier. Payment gateways are the “online” counterparts to conventional credit and debit card readers. If you’re used to in-store payment systems, think of payment gateways as an online version of a point of sale (POS) terminal. 

Online payment gateways enable card-not-present (CNP) transactions, whereas POS terminals are primarily geared for in-person/in-store transactions. These are online transactions in which the buyer and vendor never meet in person. To continue the payment lifecycle, a payment gateway sends data from the point of entry – whether it is a POS terminal, website, or mobile device – to the payment processor. 

To summarize, payment gateways serve as intermediaries. They process information entered during the checkout process and manage the authorization and fulfilment of payments made to online shops. However, it doesn’t end there. They are also used in brick-and-mortar enterprises, as stated previously. 

What is the purpose of a payment processor?

We’ll move on to payment processors now that we’ve learned about payment gateways. You’ll need both to run a profitable business and accept payments.

Payment processors operate as a link between your company and the financial institutions that participate in a merchant’s business transaction. When your customer swipes their card, the processor handles everything, including encrypting their data, transferring it to their bank for confirmation, and finally to your bank. 

Payment Processor vs Payment Gateway: What are the main differences?

  • A payment gateway is a product or service that allows you to approve or reject business transactions between your website and your customers. A payment processor is a financial institution that handles online transactions and ensures that you get your money from the consumer.
  • Payment gateways can be incorporated into your accounting software or online store, allowing you to process credit cards straight from within your software. The Payment Processor will open a merchant account for your company, allowing you to accept credit cards.
  • Using a payment gateway to take payments online is a simple process. Using a Payment Processor guarantees that credit card transactions are properly funded. The payment processor facilitates the transfer of funds from the customer's bank account to the merchants.

How does a Payment Gateway work?

The stages that describe how a Payment Gateway operates are as follows : 

  • The Payment Gateway sends a customer's encrypted sensitive data to the issuing bank from the customer's computer/device.
  • The Payment Gateway decodes the encrypted data and presents it to the issuing bank in a readable manner once it arrives at the bank.
  • The customer's information is then authenticated or declined by the issuing bank.
  • After the issuing bank has confirmed the authenticity of the customer's request, the Payment Gateway sends the online transaction details to the Payment Processor, that completes the business transaction using SSL encryption.

How does a Payment Processor work?

A payment processor’s task is to deliver confidential customer information in the following format : 

  • The payment gateway delivers the payment processor encrypted consumer information.
  • The customer's information is sent to the merchant account bank via the payment processor.
  • To validate the cardholder's identification and the online transaction's validity, the merchant account bank makes a request to the customer's card-issuing bank.
  • The payment processor receives a refusal or approval notification from the customer's card issuing bank, which is then forwarded to the payment gateway.
  • The customer is notified whether or not the transaction has been approved by the payment gateway.
  • If the online transaction is approved, the customer proceeds to the checkout process to complete it.
  • Following the completion of the business transaction, the processor transmits information to the card-issuing bank in order for funds to be transferred to the merchant account.

How do they work together?

Payment gateways gather and send credit card information to the payment processor. They inform you and your consumer about payment approvals or denials. To break it down even further, consider the following : 

 

Payment processors function behind the scenes, securely routing data to various parties from the start of the transaction until the money is settled in your bank account.

 

The transaction is facilitated by the payment processor. A payment gateway is a mechanism that allows a firm and its customers to communicate the approval or rejection of business transactions. 

 

A gateway’s most typical purpose is to take payments for goods and services offered online; but, in today’s payment landscape, gateway technology has remarkably extended to create a seamless buying experience across all sales channels and devices. To handle online payments, an e-commerce business must choose both payment services (payment gateway and payment processor). 

 

Most crucially, the payment processor does not interact directly with an authenticator; this is handled through the Payment Gateway. As a result, selecting the correct payment gateway is critical for safeguarding your customers’ sensitive data. 

 

You’ll need both a payment gateway and a payment processor to process online transactions for your business. The gateway is where the transaction begins and ends. The customer will enter their credit card details and will be notified whether the transaction is approved or denied. 

 

The payment processor transfers data from the customer’s bank to the merchant’s bank. Every online transaction necessitates both so it is inconceivable to have one without the other. 

How to select a suitable Payment Gateway and Payment Processor?

Payment gateway technology has evolved to keep up with the evolving payments landscape, despite the fact that they were originally designed for traditional eCommerce business transactions. 

 

Payment processing can also be managed over a much wider number of channels and devices using modern gateways. This allows businesses and customers to have a more seamless omnichannel experience. 

 

Different companies can technically manage your merchant account, payment gateway, and payment processing. However, when problems or disagreements develop, this might cause problems. Who is to blame if your online store abruptly ceases to accept payment cards? 

 

You can avoid interoperability difficulties by getting all three from the same vendor such that there is only one vendor you need to contact if a problem arises. 

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What are the Merchant Benefits of Using Payment Links

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What are the Merchant Benefits of Using Payment Links

Whether you sell online or not, you’ve probably spent a lot of time and effort getting customers to the point of payment. So, it should be simple to accept their payments, right? 

Absolutely! That’s why a payment link can be extremely useful in some situations, such as when you don’t have access to card swipe devices or need to accept B2B payments electronically. Payment links are a wonderful alternative for executing transactions fast and easily in these (and other) situations.  

Businesses are realizing the benefits of going digital and are allowing for online sales where the payment process is one of the most important aspects of a successful sale, and you must approach it carefully to ensure that your consumers have a positive experience with it. 

Table of Contents

What is a payment link?

A payment link is essentially a payment technique that allows you to request and accept online payments from consumers outside of your typical online business. It’s usually powered by one of the prominent payment systems, which assures that both merchants and customers’ payments are secure. It also provides versatility in terms of how it can be used. Wherever you sell online, they can be an email invoice, a social network company page, basic checkout pages on a website, or even channels in messengers. 

How do payment links work?

Customers are sent an e-mail, SMS, or web link with a “Pay Now” or “Pay Invoice” option. Customers who click the payment button are brought to a payment page that displays the amount owed. They can safely fill up their billing and shipping information, and the transaction is complete. 

Who would use payment links?

While some companies may use payment links to receive the majority of their payments, others may only use them on occasion. If you’re a B2B company that sends electronic invoices to customers, for example, you may include payment buttons directly in your invoices to speed up payment. 

Alternatively, you could be a tiny B2C business selling at an event without access to card swipe devices or a virtual terminal. You can simply email a payment link to a customer when they are ready to pay. They’ll get it right away on their phone, and they’ll be able to finish the payment details quickly by inputting their credit/debit card number or selecting a payment wallet like Paytm or Google Pay. 

Making payments in today’s expanding e-commerce markets should be all about simplicity, security, and speed. There are multiple payment methods that have progressed over time, from cash to cards to digital payments, with each advancement being more convenient and advanced than the previous. Payment links, on the other hand, are a significant mechanism that is gaining popularity and traction.  

Here are some of the most important merchant benefits of using payment links to collect money :

Multiple payment methods that are convenient to use

There are multiple payment methods and currencies that customers can choose from when using a payment link. Customers who have already submitted payment information to you will find the page pre-populated with their billing and shipping information; all customers have to do now is click “Pay Now.” Even better, the payment page it directs to is mobile-friendly, making it simple to navigate even on a phone. (Including an eWallet payment option speeds up the process even further.)

Processing time is reduced

For the business, the benefit of payment links is that they no longer need to meet with consumers for payment or wait for a bank transfer, especially for small amounts. They can simply generate a link that is customized with the information of the purchased things and the requested amount, and clients can complete the payment at their leisure. The funds are automatically transferred to the merchants after a successful payment, reducing the inconvenience and eliminating the need for cash.  

Lowered overhead costs

Furthermore, receiving payments through a link eliminates the need for any payment devices such as POS terminals or other third-party applications, reducing setup and maintenance costs. Several apps offer a “pay as you go” model, in which merchants pay a per-transaction cost based on usage rather than registration or monthly price. This lowers the hurdle during initiation, especially for small businesses or those who only accept card payments for a small portion of their sales. 

Improved customer service

Payment links can be shared on any social media or messaging site, allowing businesses to personalize the transaction by including a message thanking customers or promoting other products. Furthermore, payment links give clients the freedom of choosing from multiple payment methods and paying with their preferred method. As a result, it enhances the overall shopping experience and can be used to cultivate a loyal consumer base. 

It's easier to collect payments

You can build a payment link and customize the checkout page with your own branding with minimal IT work. If more payments are made by credit card, it may ease the pressure on your finance or accounting staff and save them time processing checks. 

You can collect payments more quickly

Including a “Pay Now” button on an electronic invoice encourages customers to pay right away, rather than waiting for a physical check to arrive. Paying with a credit card not only expedites the payment procedure, but it also informs you instantly if the funds are available. If not, you can display an error message instructing the customer to try another card, which will immediately resolve the problem. 

Works on an international scale

It can be used to receive or send money in any currency. Whether it’s for a friend or to pay for a service, the person who receives the payment has the option to accept it and convert it, not to change it to another currency, or to refuse it. 

Conclusion

Many people talk about not having enough time in their daily lives. Transferring funds and paying in cash has become a time-consuming process. Streamlining this process by using Payment links, can provide a number of merchant benefits when used. 

 

With the passage of time, society’s pace has progressively developed, responding to new demands that have surfaced. The electronic market is one area where these shifts are becoming more visible. We have only now recognized the significance of online payment. 

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How to optimize Cash on Delivery Process and Why it’s Needed

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How to optimize Cash on Delivery Process and Why it's Needed

Cash on delivery, or COD, is a word that most of us in the eCommerce industry and online buying are familiar with. In simple terms, it is a method of payment in which the customer pays the courier or vendor immediately with cash or credit card when the product is delivered. This is considered to be one of the most popular methods of online buying and selling transactions. 

Without a doubt, technology has brought about a sea change in every industry throughout the years. Due to several constraints imposed by protracted lockdowns, the pandemic has hastened technological adoption and disrupted various sectors, with the logistics industry being at the forefront of change. The ecommerce logistics industry was likewise one of the few to recover quickly after the lockdowns. 

However, the pandemic has changed the way the industry functions, with innovations such as contactless deliveries becoming a must, and as a result, more people shifted to ordering on prepaid ecommerce portals during the lockdown period. 

While the eCommerce business has embraced these on a massive scale, India has traditionally been a cash-based country, and as vaccinations are being delivered to the populace while safety measures are implemented, the Cash on Delivery (COD) mode of payment is resurfacing. When it comes to payments, India is mostly a cash-based economy, despite the fact that a large percentage of the population has adopted digital payments. This means that the Cash on Delivery (COD) mode of payment will continue to be a major priority for eCommerce websites and marketplaces.

Despite the popularity of digital payments like UPI, card payments, and mobile wallets, research shows that COD still accounts for one of the greatest percentages of overall payment methods in developing countries. While the Cash on Delivery process appears to be simple for customers and a painless one for businesses, it is not without its drawbacks.

 

Because COD payments have intrinsic concerns such as a higher possibility of order rejections at the time of delivery, which leads to higher sales returns, a comprehensive, robust solution for a frictionless Cash on Delivery process must be established. This has a direct impact on revenue realizations, inventory planning, and other aspects of the business, all of which have an impact on the company’s bottom line.  

Table of Contents

Why do Indians Prefer Cash on Delivery?

Even if our society is becoming more technologically advanced, credit/debit cards, net banking, and e-wallets account for only 30% of internet purchases. The following are some of the reasons why cash is still king:

  • Every day, new e-commerce sites emerge. Customers are afraid of being scammed because they don't know the integrity of such internet stores.
  • Customers have been making cash payments since the beginning of time, and they are familiar with them.
  • Transactions are made easier with cash payments. It's as simple as handing over the money for the product or service obtained and walking away.
  • There is still some post-purchase order anxiety. Refund duration, refund not received, refund not permitted by some businesses, and so on.
  • Customers in tier 2 and 3 cities are especially skeptical of internet transactions. They are no longer reliant on credit cards or internet payments because they can pay with cash.

Some clients prefer cash on delivery because they want to be certain that the goods that they receive are what they expected. They prefer to inspect the product in front of the delivery person before deciding whether or not to accept it. They can seek a refund if they receive an incorrect or broken product if they opt for payments using cash on delivery. 

Here are five practical strategies to improve the eCommerce logistics industry's COD order delivery procedure.

Examining the customer's history

Every firm has both good and bad customers. Some people may be prompt in completing their monetary transactions for orders, while others may drag the process out. For logistics companies to enhance the COD process, they should use consumer behavior analytics based on previous orders and rejections. This can then be utilized to create internal flags, allowing the COD process to become more efficient by screening out clients who are serious about their purchases at the time of order taking. 

Verification of customer contact information and address

In eCommerce, numerous social media outlets account for a significant portion of consumer acquisition. These consumers are typically from Tier 3 and Tier 4 cities, and they want to pay by cash on delivery because they are making their first online purchase. Helping customers write appropriate addresses with house/ward numbers and local landmarks while placing orders is critical. Address validation software is used by most large eCommerce retailers and websites to identify problematic addresses and execute an address re-verification process before shipping those items. 

Rechecking a customer’s address and phone number might go a long way toward making the Cash on Delivery process unfold smoothly. Re-validating a customer’s contact number via OTP, doing an address check based on the content of an address, and validating the pin code based on the content of an address are all important procedures in this process. The use of Google Maps APIs to indicate redundant/bad addresses will ensure that last-mile delivery goes smoothly.  

Updating customers in case of a delay

Nobody wants their orders to be delayed, especially customers. However, in situations like the current pandemic, unforeseen delays are unavoidable. Logistics providers can integrate deeply with carriers’ Transportation Management Systems and Delivery Mobile Applications to keep customers informed of any transit delays caused by COVID-19 limits, natural disasters, carrier-initiated delays, and so on. 

Businesses should share a shipment’s Non-Delivery Reason (NDR) in advance to ensure that the delivery executive’s comments about the non-delivery of COD shipments are accurate. Furthermore, sending NDRs to customers via SMS or WhatsApp and receiving comments from them via these platforms will allow customers to alert the company to any gaps in real time, allowing corrective action to be taken. 

TAT adherence for shipping timelines

It’s critical to stick to the TAT (Turn Around Time) that was promised to the customer. Logistics platforms can undertake an internal analysis based on a carrier’s recent performance in those cities, lanes, or pin codes to allocate a carrier with the highest chance of delivery conversions and TAT adherence. These will enable them to detect carrier capacity, infrastructure, and on-time delivery difficulties, as well as assign the best possible carrier for COD goods. 

Enabling electronic/card payments for COD orders

Customers/consignees should be able to pay for COD orders using UPI, Wallets, or by swiping their debit/credit cards on an EDC machine at their doorsteps. Allowing such electronic payment options will, in turn, reduce customer rejections and improve the Cash on Delivery process. 

Conclusion:

With COD remaining the most popular mode of payment for ecommerce, brands, ecommerce websites, marketplaces must be highly adaptable in terms of technology and internal and external control mechanisms to ensure increased COD order deliverability. The measures outlined above will go a long way toward accomplishing this goal.

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Effective Ways to Improve Cash Collections and ensure timely Payment Settlements

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Effective Ways to Improve Cash Collections and ensure timely Payment Settlements

Many small businesses find it difficult to collect money from their consumers. However, sometimes it is the business owners who are to blame. Many businesses have inefficient invoicing and collection procedures that lead to readily avoidable issues. 

Table of Contents

Here are a few ways to keep the cash flowing:

Improve your invoicing

Many small businesses find it difficult to collect money from their consumers. However, sometimes it is the business owners who are to blame. Many businesses have inefficient invoicing and collection procedures that lead to readily avoidable issues. 

Improve your invoicing

Many firms harm themselves by issuing invoices that aren’t prepared well. Bills and invoices must be detailed while remaining basic and straightforward. Everything should be itemized on the invoice, and it should be sent as soon as possible. This eliminates the uncertainty and questions that lead customers to wait. Avoid using charming graphics or flashy colors that detract from the invoice’s essential business function. Make it clear how checks should be written, where they should be mailed, the due date (or simply “On Receipt”), and any instructions for paying online, by credit card, debit card, PayPal, or other means. 

Use a billing or invoicing service that is cloud-based

 Small enterprises, self-employed professionals, and freelancers can benefit from online invoicing and billing services. Bill.com, for example, is a popular online invoicing solution that can help you streamline and speed up your accounts receivable process. Invoices can be quickly created, sent, and tracked. Customers may view and pay your invoices online, and the money is deposited directly into your account. 

Provide discounts for early payment and pre-payment

Many car rental businesses and hotels offer two prices when you hire a car or make a hotel reservation: A lower price if you pay in full now, and a greater price if you pay later. Why don’t you give it a shot? Consider giving a 2% to 5% discount for paying in advance. Customers will be rewarded, and you will save time and work by not having to try to collect afterwards. 

Set a late payment penalty

First, you’ll need to create a clear and consistent policy that explains how late payments can result in a fee. Even if you don’t charge the cost or waive it for loyal clients who are late for legitimate reasons, simply stating it on your invoices will encourage fast payment. 

Deposits, down payments, and/or progress payments are required

While this is standard operating practice in various industries and professions, it can be used by a variety of small enterprises. Don’t be scared to request a portion of your payment up front and further payments as the project progresses. 

When it comes to missed payments, take a personal approach

If payment is sluggish to arrive, follow up personally and courteously. It’s more likely to fail if you ask a clerk, bookkeeper, or someone else to make these connections. Personal attention may also offer you useful information on why the payment is late, such as customer service or product issues. 

Check the creditworthiness of your customers

Customers’ credit ratings are being checked by an increasing number of small enterprises, both businesses and consumers. Experian, Transunion, and D&B are just a few of the credit scoring companies that offer low-cost options for small enterprises.

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Set reminders and safeguards

A step-by-step timetable for initial invoicing and follow-ups is essential for effective billing and collections. This should include a policy of issuing invoices as soon as possible and following up with letters, emails, or phone calls if payment is not received within the time limit provided. Your invoicing process should also incorporate protections to ensure that the correct invoice is always sent to the correct customer. Make use of an invoice numbering scheme and avoid repeating numbers. This might lead to a lot of misunderstandings and delays. 

Develop a backup plan

If at all possible, at least two persons should be able to manage your company’s invoicing and collection obligations. Invoicing won’t come to a halt whether someone goes on vacation or quits.

How can MIMO help?

Our cash collection service is convenient since it ensures the security of your money without forcing you to leave your office. MIMO Cash Collection Service takes care of all of your cash management needs and keeps your cash deposits safe, allowing you to maximize your cash flow. MIMO provides a simple-to-use solution that takes care of all of your financial needs, from cash deposits to e-money transfers. The entire collection and deposit process is handled by our qualified personnel, reducing the danger of theft, cash mishandling, and fraud. 

 

The worlds of payments and communications are rapidly evolving, and emerging technology will assist in streamlining the payment process for consumers, ensuring that invoices are paid on time, and reducing the burden that comes with nonpayment for small business owners.

A few benefits of adopting our software model entails:

  • Bulk invoices support
  • One-click payment
  • Multi payment mode
  • Channel choice
  • Setup hassle-free payment mode
  • One-stop solution
  • Unlimited scalability
  • High compatibility with existing systems

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Why SMSs are trending for Payment Collection and Invoicing

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Why SMSs are trending for Payment Collection and Invoicing

Coronavirus has had a significant impact on corporate budgets, affecting orders and sales for a wide range of industries. This has highlighted the importance of handling unpaid invoices, with one of the top targets being to make paying invoices convenient and straightforward for consumers. You can accomplish this by sending your invoices via text. 

Table of Contents

The following are a few benefits of using SMSs for Payment Collection and Invoicing:

Make payments more convenient:

One of the most common methods of payment is via bank transfer, often because it avoids card transaction fees (which can be up to 3%). Payment by bank transfer is now easier with the increased popularity of banking apps. However, this method still requires input by the customer to log on to their banking app, and manually input the bank data of the payee’s account and invoice amount.

 

However, the customer must also log into their banking app and manually enter the bank data for the payee’s account and the invoice number. This makes payment cumbersome and adds complexity to the process. Card purchases made over the internet pose a similar situation. Talking to an IVR (interactive voice response) device or a human attendant and entering card information is normally needed. For the business to protect card security and comply with card security laws, this necessitates expensive agent time and/or systems.

 

Customers are increasingly using their mobile devices, making it inconvenient for them to take out their cards and manually enter information. Offering simple mobile card payment via email, on the other hand, removes these issues by reducing data entry and the need to connect with several systems to make a payment.

Make your invoices stand out:

Email is one of the most popular methods of communicating with distant customers. The email issue is that it is overused and trying to engage your customers with more email just makes things worse. Especially among the younger generation, emailed invoices are buried in cluttered inboxes or simply ignored as low priority. Reminder emails (as well as phone calls) can fall victim to the same fate, requiring additional time and effort from the company to coordinate and send.

 

Postal invoices are not any better, with notices often being overlooked or misplaced in the mail. It is also difficult to tell if your invoice arrived without a “read receipt” and therefore, capturing the customer’s attention becomes difficult. Although email and phone are still common, they are not where the growth is. Because of our mobile-first lifestyles, 90 percent of consumers now prefer to communicate with businesses through texts. Text excels at capturing the interest of consumers.

 

Consumers are 7 times more likely to read a text message from a company than they are to read an email. Customers who are always on the go love texting, and text messages enable them to communicate directly with you on the most valuable piece of digital real estate you have – your phone. As a result, SMS or text is a perfect way to get your invoice noticed by your mobile customers and it is almost certain to be seen almost as soon as it is sent.

Friction-less Payments:

Most accounting apps also have a “Pay” button inside an emailed invoice for paying by card, rather than navigating to a payment site manually. This normally takes the customer to a different tab, and if it cannot prepopulate card data, the customer will have to take their card out and manually enter them. This can be aggravating, particularly if the site is not set up to accept mobile data input.

 

Alternatively, allowing customers to pay directly from the invoice rather than being directed to a different payment page or site may minimize payment friction. Customers can easily review the bill, make any necessary adjustments to the invoice (e.g., address) while still on the same page, and pay without having to enter any additional information, think about it, or take any action.

 

The inclusion of “Pay” buttons offered by mobile wallets such as Apple Pay, and Google Pay is critical for facilitating simple and fast payment. After reviewing the invoice, busy customers can pay with a single click from the invoice tab. Payment is completed without the need to enter information such as name, address, card number, or PIN, minimizing payment friction and increasing the likelihood that the invoice will be paid when the customer receives it through text.

Increased Security:

Texting invoices has the added benefit of using a phone’s biometric security features to facilitate the use of mobile wallets. This removes the need for customers to enter confidential card information into payment sites for each order, lowering the risks of disclosing card information over the phone or online.

It is the future!:

Text (as well as other mobile messaging platforms like Messenger and WhatsApp) is conversational, making it perfect for chatbots. For more intelligent interactions with customers, these functions can be refined by increasing the use of natural language comprehension. Bots will save account workers considerable time in chasing clients and their unpaid payments without needing direct human intervention, in addition to assisting in the recovery of outstanding debts and boosting cash flow. The other major advantage is that payments are made almost immediately via the banks’ quicker payments network, allowing small businesses to increase their cash flow. Most card payments take at least seven days to reach a business’s bank account. With the ability to incorporate fast action buttons, photos, and videos, future developments in text and other messaging services can make business messaging even more appealing for customers.

The worlds of payments and communications are rapidly evolving, and emerging technology will assist in streamlining the payment process for consumers, ensuring that invoices are paid on time, and reducing the burden that comes with nonpayment for small business owners.

 

MIMO technologies have recently launched payment collection and invoicing services through SMS delivery. A few benefits of adopting our software model entail:

  • Bulk invoices support
  • One-click payment
  • Multi payment mode
  • Channel choice
  • One-stop solution
  • Unlimited scalability
  • High compatibility with existing systems
  • Setup hassle-free payment mode

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Benefits of adopting a customer loyalty program using POS systems

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Benefits of adopting a customer loyalty program using POS systems

A loyalty rewards program is an excellent way to keep consumers engaged and inspire them to return. According to research, 83 percent of shoppers around the world consider loyalty schemes when choosing where to shop. But did you know that if your customer loyalty program is not incorporated with your POS scheme, you are restricting your return on investment (ROI)? 

Table of Contents

Here are a few compelling reasons to combine POS and customer loyalty programs to optimize the company's benefits:

More Valuable Information

When you use an integrated network, all your systems and apps share data. While loyalty data is valuable on its own, when combined with other data from the point of sale, it can provide deeper insights. For example, with an automated system, you could easily figure out what your most loyal customers are buying, allowing you to predict more accurately and prevent stock-outs. Furthermore, data from an integrated system provides you with a comprehensive, real-time view of your market, which is nearly impossible to achieve with non-integrated systems.

Intelligent Marketing

If you have access to the right info, your loyalty program can also be a powerful marketing tool. You can make customized deals to loyalty program members and expand your company by matching sales data with customer loyalty program accounts. According to a study, 80 percent of customers choose to do business with a company that provides personalized service. A loyalty-POS system that is integrated can also mean better marketing in general. When customers sign up for a loyalty program, they have basic demographic details, which you can use to better understand your customer base and target ads more precisely. You can interact easily with all your customers and gauge the efficacy of promotions and marketing strategies with a fully integrated retail management framework that includes integration with your CRM system. Furthermore, integrating your customer loyalty program with your POS system helps you to assess the efficacy of your loyalty program. Are consumers taking advantage of exclusive offers? Do they take pleasure in being rewarded? Does it inspire customers to come back? The answers can be found in a combination of data from your POS system and customer loyalty program.

Customer Convenience

Enhancing customer interactions is another crucial reason to align your customer loyalty program with your POS scheme. Sales associates can enter a customer’s ID number or scan a loyalty card into an automated system, and points from a transaction are automatically credited to the customer’s account. They can also check their point balance and add points during checkout, which is exactly what your customers want. According to a survey, 84 percent of customers believe that redeeming loyalty bonus points immediately enhances their shopping experiences.

Multichannel, Multilocation use

Customers can use their loyalty cards and redeem points anywhere when they use a single, integrated platform. Customers can quickly see how many loyalty points they have while shopping online on their tablets, or in any of your stores. Seamless shopping experiences are the product of an integrated network.

Efficiency in Information Technology

Another benefit of integrating systems is that they are easier to maintain, upgrade, stable, and integrate with third-party applications for your IT resources. Instead of logging into various dashboards and wasting extra time on clumsy workflows, integrating systems allows you to handle all your applications from a single location.

Client Segmentation

Since loyalty programs and POS systems work together to monitor consumer preferences and buying patterns, more committed consumers will be rewarded more often and with more valuable deals, increasing their value to the brand over time. By gradually increasing participation and tempting deals, the customer loyalty program can be structured to engage fewer active consumers to try to maximize their buying behavior. They will continue to be compensated in ways that increase their value to your brand as they become more loyal over time. If their interest does not improve because of your loyalty program’s actions, the program can gradually reduce any incentives, and you can focus your retention efforts on those that are more likely to be loyal to your brand.

Personalized promotions

So, what will you do with your customer data once you have it? With the knowledge it has, your POS system will help create personalized deals for each customer.

A POS can deliver personalized promotions in a few ways:

  • Discounts on goods based on previous sales, such as submitting a coupon code or discount code to be used on any new items that are identical to the customer's previous purchases.
  • Personalize your marketing messages.
  • On customers' birthdays, send out exclusive coupons and discounts.
  • During seasonal occasions, such as Christmas, send out advertisements and special messages.
  • Send out deals tailored to the customer's lifestyle and interests, such as a special discount for students before the start of the school year.
  • Customers who have not shopped with you in a while can get coupons via email or SMS. This is an excellent way to remind them of your business and entice them to return.

Retailers develop extensive and detailed operations management systems capable of automating and managing the various tasks associated with operating a retail business based on convenience store POS software in this industry. From inventory management to human resource management, POS tech platforms serve as the foundation of convenience stores, simplifying complex processes and making convenience stores simpler to run.

 

Integrating your customer loyalty program with your point-of-sale system is crucial for holding the right products in stock, personalizing service, and delivering consistent loyalty experiences wherever your customer’s shop.

Digipe is a customizable, modular payment solution with superior mobile security. MIMO is one of the first to offer this service to its clients. We believe that this innovation will lead to widespread acceptance and adoption of mPOS services across the country. The mPOS solution has aided in bridging the gap between in-person and online purchases, resulting in a seamless payment experience across all platforms. 

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5 ways POS system can help businesses survive the Pandemic

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5 ways POS system can help businesses survive the Pandemic

The Coronavirus pandemic – and the resulting shift in consumer behavior in terms of shopping, working, and living – has dramatically altered how things are done in various sectors of the economy. And the retail industry is no exception. There has been a 15-30% rise in customers purchasing online because of the pandemic.

 

Different sales strategies, such as contactless payment, curbside pickup, virtual consultations, and even social commerce (purchasing products through social media) have also risen in popularity. This new behavior, according to retail analysts and shopper surveys, is here to stay.

 

Merchants should use current POS systems to survive the pandemic and meet the new demands of today’s consumers, which will enable them to rapidly adjust to market trends (e.g., potential lockdowns) and easily sell both in-store and online. Retailers are increasingly dependent on point-of-sale technology due to the need for versatility.

During the pandemic, almost all industries have been severely affected. People are apprehensive about leaving their homes and eating in public places, and with good reason. Furthermore, restaurant owners and employees take a huge risk by engaging directly with customers. When it comes to dealing with consumers up close and personal, retailers are taking a big risk. The new POS systems, on the other hand, will make the entire process much more relaxed and secure than before.

Table of Contents

Here are five ways it can assist the company in surviving the pandemic:

Contactless Transactions

COVID-19 can only be transmitted through air or contact, according to CDC reports and FAQs. You would need face covering to protect customers from the virus’s airborne spread. That leaves the issue of “how do you stop the virus from spreading through contact?” When you run a company where money is exchanged, this is especially difficult. Fortunately, a sophisticated point-of-sale system will significantly alleviate this problem.

 

Even though contactless payment systems can be extremely useful in these turbulent times, many business owners are yet to update their systems to accommodate the technology. Whether it is credit cards, debit cards, or smartphones, the consumer has a variety of choices for paying without making touch. However, updating an out-of-date POS system is needed to reap the benefits of contactless payment.

Online Ordering

It is fair to say that most companies are only surviving this pandemic because of online shopping. This is particularly true in states and cities where there is a complete or even partial lockdown. With such a surge in online ordering, you will want to make sure your company is prepared.


Having the right tools and systems in place to process any online orders could mean the difference between your business thriving or failing during the pandemic.

 

It may appear daunting at first to incorporate online shopping, but it does not have to be. POS software that is up to date makes ordering as simple as ordering in the shop.

Integration of Delivery

As a business owner, you’re undoubtedly aware of how retail has changed drastically over the last decade. Last-mile delivery has become a huge success in terms of business growth where cutting-edge POS systems can combine delivery capabilities with a variety of other industry innovations into a single piece of hardware.


An order may be placed online, prepared on-site, and then shipped using any of the current services. Many of the most common delivery services are integrated into the best POS systems, so you do not have to waste time arranging deliveries yourself.

Engaging Marketing

Influential marketing is more important than ever before. Remember that many people are hesitant to leave their homes. They may also be hesitant to get orders delivered to them via a delivery service. That means you will have to concentrate more than ever on mass marketing and assuring your loyal customers that your company is safe. Even sending marketing messages to new and current clients can be made easier with the help of a high-tech POS system.

Recognize and reward loyal customers

This final advantage complements the previous one. Customers will participate in loyalty programs for most of today’s POS schemes. Being a loyal member of any company, as we all know, is always a pleasant and satisfying experience. It is worth the few moments it takes to sign up for the occasional surprises and discounts. So why not provide that option to your customers? From a market standpoint, it is also a fantastic way to keep clients and boost profits, with 46% of consumers saying they do more business with organizations that have loyalty services.

 

For any company owner, these are trying times. They must take the appropriate precautions to ensure that they survive the pandemic without losing customers. Investing in cutting-edge restaurant POS tools is an excellent way to do this. You can reward loyal customers, send automated marketing messages, and never have to worry about virus transmission via contact.

How can MIMO help?

MIMO Technologies is a leading software development company that is committed to providing reliable and cost-effective software solutions across industries all over the world. They are among the fastest-growing IT and R&D services companies. Their growth has been powered by their consultative approach, deep understanding of business, passion for innovation, and above all, Integrity.

Traqpayments provides a unique mPos service that lets a merchant accept credit/debit card and wallet payments on his/her smartphone. An mPOS (mobile point-of-sale) is a smartphone, tablet, or dedicated wireless device that performs the functions of a cash register or electronic point-of-sale terminal (POS terminal) wirelessly.

 
MIMO is one of the first to offer this service to its clients. They believe that this innovation will lead to widespread acceptance and adoption of mPOS services across the country.

Some common scenarios where DigiPe will prove to be useful are as follows:

Shops/Supermarkets:

Merchant can accept money using any of the Traqpayments options- through Payment Link, QR code, Wallet, Digiswipe which keeps both the customer and the merchant happy.

Vendors:

The vendor will be able to send a payment link to the customer on their smartphone via SMS. Customers can pay their dues through the link.

School Office:

Administration sends the school Fees through SMS on the student’s Parent’s Mobile. Parents can pay the school fee easily without visiting the school or any bank.

Digipe is a customizable, flexible payment solution that offers enhanced security within a superior mobile framework. The mPOS solution has helped to bridge the gap between face-to-face and e-commerce transactions, creating a smooth payment experience across all channels. 

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