Change can be stressful—try talking to someone who just switched from a P.C. to a Mac.
We don’t like change, we don’t want change, we do everything we can to avoid change. If change leads to only marginal improvements, is change worth it?
Dwolla is asked this type of question every day when a business is considering a payment API to automate its payment processing. Adopting a new payment integration that involves rolling out new processes can be daunting to a team with a full calendar already. Do we have enough resources to build this in house? Will that team need to hire a third party to complete the integration? How long till the company recoups the costs of this new technology? What will I need to learn?
Which ultimately leads back to square one—do we really need to change how we’ve always done things? Could an improvement to our payment experience really help us scale?
Here are three ways a payment API could improve your business (and relieve some stress from your day).
Create More Time For Your Team
It’s not just dollars and cents, your time is worth money too.
Companies that continue to issue checks and manually monitor transactions need to factor the time it takes to process each payment. Each week, are you spending half a day collecting payments and updating an Excel spreadsheet with transaction history? Are you spending half of another day writing checks?
This was the exact scenario for this pet insurance company. As claim volumes increased, their small team was getting behind on invoices and disbursing checks to reimburse policyholders.
Once the decision was made to find outside help, it took 10 days to integrate Dwolla’s payment API to start automating reimbursements via ACH transactions. Today, the company handles over tens of thousands of claim payments each month using ACH and Dwolla, which has helped increase their efficiency by nearly 800%.
Limit Human Error
Instead of spending hours each day working through a disjointed payouts process, imagine being able to configure an API to digitally pay your vendors, reimburse employees or just simply make your payments more efficient. In addition to an automated experience, the Dwolla Platform includes bank verification services to make sure funds are coming and going from legitimate accounts.
But even if the strength of your team is the team, human error can cause data discrepancies—creating fun working sessions with multiple team members to pore through an Excel spreadsheet of spending or transaction histories. If your current billing setup is in a spreadsheet with formulas pulling in data, a simple miskey can lead to hours of triaging.
Even if your team is short staffed, if you could automate 50% of your current processes, how long would it take to see a return on your investment with a digital payment API integration?
Our hypothesis is that if we make it easier to complete a payment integration and help businesses realize the value quicker, the faster they will see business growth. By integrating Dwolla’s payment API, a business can automate its payment processing using modern software and streamline reporting with a digital payment experience.
In an attempt to remove much of the complexity that comes with a payment integration, we offer low-code, Drop-in Components. Each component was created for specific parts of an integration, reducing hundreds of lines of code to easily be copied and pasted into a website or application, saving some businesses more than 40 hours of work for their developers—leading to thousands of dollars saved. What would normally take five days of work can be completed in an afternoon using a drop-in component.
Control Your Cash Flow
Finance teams that still rely on checks or credit cards also rely on other team members for manual transaction monitoring and payments to vendors.
If your corporate credit card has a certain limit, you will need to be careful of the timing of certain payments. Your Amazon Web Services monthly payment could eat up 80% of your monthly transaction limit—meaning when that is paid, other areas of your business could be impacted. What if an expensive bill comes due after reaching your credit limit? How embarrassing would it be to have your company card declined during a business lunch? And if there’s an overage, does your business issue a refund check or offer a discounted rate for the next month? Where is that information tracked? Who needs to know?
With Dwolla’s payment API all of your payment activity is tracked in one dashboard. With the Dwolla Dashboard, you can easily monitor various transaction activity, new user onboarding and even initiate a transaction from your attached bank account.
And for those even less technical, it is even possible to send funds from the dashboard without an API integration.
The flexibility and automation of the Dwolla Platform allowed the accounting department at an ad platform to decrease the time spent on payable tasks by 50%—while drastically reducing the number of reconciliation errors.
With payout times being reduced from 10 business days to 1-2 in this example, it might take less time than you think for your business to start recognizing value from a payment API.
Change the Status Quo
Legacy payment processes are comfortable and easy to use. Change for change’s sake is not valuable. When you are changing to become more efficient—while also meeting the needs of your customers—change makes sense.
Expect a meaningful impact on your business with automated payment processing. We’re here to help, whether you are ready to get started with a new payment technology or looking to solution for a longer term pain point that has been plaguing your business.