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Properly managing adoption of electronic payments

Nov 02, 2012 Dave King

Properly managing adoption of electronic payments
Electronic payments have gained an incredible amount of traction over a relatively short period of time, as the advent of new transaction processing capabilities have offered businesses affordable and effective methods of conducting merchant operations. However, security has been a major concern, as ACH cards and wire transfers account for billion of dollars in losses derived from fraud every year.
 Businesses can mitigate these risks by meeting compliance requirements, such as Payment Card Industry Data Security Standards, and following best practices. Additionally, employees responsible for accounts payable and receivable need to be especially vigilant, as automated payments have been the biggest targets of criminals throughout the past several years. Electronic payments defined
The Minuteman News Center recently explained how electronic payments have successfully changed the way in which many businesses operate. According to the source, the associated technology has yielded far higher efficiency than ever before, including a reduction in operating costs derived from stamps, envelopes, payroll invoices and more. In addition to saving millions of tons of paper every year, electronic payments boost convenience for clients and businesses, as automated debit and credit transactions reduce the amount of time spent writing out checks. Further, the news provider added that businesses often experience a reduction in the rate of late payments following adoption of electronic payment services. Bill payments can be carried out at much faster speeds with electronic payments than through standard mail. Minuteman News noted that many businesses are now beginning to mandate automatic electronic payments for regular bills, such as car financing, utilities and more. This process can also help consumers and businesses keep their credit scores high. Threats still abound, though manageable
ACH and wire fraud are incredibly dangerous, and often difficult to detect. While more businesses adopt these processes for wages and other regularly scheduled outgoing payments, many became victims of crimes that incrementally stole large sums of money over a long period of time. This can lead to costly identity theft crimes, as thieves only need a small amount of personal and banking information to successfully steal money from victims. Keeping a close eye on these automated payments will help businesses avoid incurring major losses. Additionally, companies should consider adopting the most advanced data security software and services to ensure their systems are far out of the reaches of incendiary forces.