Banking Technologies That Save Time and Money

J. Boger Hessing, PSB - Princeville State Bank

Over the past several years, the banking industry has introduced several technologies that provide significant benefits for small to mid-sized business owners. These technologies include Remote Deposit Capture, merchant processing and online banking/cash management services. Incorporating just one of these options into your business can streamline routine tasks and allow you more time to focus on the strategic aspects of your business.

Remote Deposit Capture
How much time do you or your employees spend in the car travelling back and forth to the bank to deposit checks? How long do checks sit on a desk waiting to be deposited instead of being immediately accessible for your business needs?

Remote Deposit Capture (RDC) is a technology-enabled process that allows businesses to scan, verify and deposit a check without ever leaving their establishment. The basic requirements for an RDC service include a PC, an internet connection, a check scanner and a service provider, such as your current bank.

Checks you receive at your business are scanned to create a digital deposit that is then sent directly to your bank, where the funds are posted to your account. The deposit is usually transmitted over an encrypted internet connection, making the process safe and secure. And because paper checks are still one of the most popular methods of payment—especially for B2B payments—RDC has emerged as one of the best solutions to help merchants reduce the time and cost associated with the manual check deposit process. It’s convenient, funds are more readily available to use for purchases or investments, and transportation costs and risks are eliminated.

Merchant Processing
Each U.S. consumer carries an average of 1.96 credit cards. Is your business equipped to accept them? Merchant processing refers to the service that enables a business to accept payments via a customer’s credit or debit card. It includes obtaining sales information, receiving authorization for the transaction, collecting funds from the bank that issued the card, and sending the payment back to you, the merchant.

Setting up your business to receive debit and/or credit cards requires that you have the appropriate POS (point-of-sale) equipment and a merchant account. POS equipment determines which forms of payment you can accept and includes such technology as card readers, tablets and mobile systems. This equipment can typically be purchased or leased. When combined with a merchant account—a type of bank account that allows a business to accept payments via debit or credit cards—your business is equipped to accept more payment methods, a move that can equate to increased sales.

Online Banking/Cash Management Services
Did you know that taking the time to automate more of your expense management and payment processing can actually save you time and money? Using online technology to streamline your income and expense processes can improve both your cash flow and your bottom line. Some of the more common processes businesses look to move to an online system include collections and payment processing and payroll.

If you are a supplier of goods or services to other businesses that make regular payments to you, ACH collections allow you to electronically debit their bank accounts on a specified date. Similarly, you can set up one-time or repeating payments to suppliers. This automation maximizes cash flow, as you know exactly when money is coming in and going out of your business. Similarly, automating payroll to employees helps eliminate some of the administrative and financial challenges of the payroll process. Direct deposit services are an efficient, reliable alternative to issuing traditional checks.

Each of these options—RDC, merchant processing and online banking/cash management services—can be customized to the specific needs of your business. Implementing one or more of these technology-enabled solutions can have positive results for your business—including saving you time and money. iBi

J. Boger Hessing is VP – Commercial Relationship Manager with PSB – Princeville State Bank, member FDIC and equal housing lender. For more information, call (309) 693-9494, email bhessing@p-s-b.com or visit p-s-b.com.

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