How to Automate Payments For Your Business

In a world where we are increasingly reliant on technology, automating payments has become the go-to solution for many businesses. By automating payments, businesses can save time and money that would otherwise be spent on manual processes. The latest paytech innovations driving the online transaction revolution all rely on automated payments.

Despite the importance of prompt and punctual payments, you may still be dependent on inefficient payment setups where you may have to, for example, manually input the information of your suppliers, or individually calculate and enter commissions earned before paying contractors. 

These manual and human-dependent setups create challenges and can be a hassle to work with. Not only do these manual systems force you or your finance team to manually keep track of who needs to be paid and when, but you also create space for human errors. Automated payments, on the other hand, can help you streamline your payment process so you can make payments quickly and easily.

If you're looking for a way to automate your payments, you've come to the right place. But first, let's take a look at the benefits of automated payments. 

The Benefits of Using Automated Payments

Perhaps the most obvious plus of using automated payments, among a multitude of benefits, is that it can save you a lot of time and hassle. With an automated system, you don't have to worry about issuing payments manually, as instead, the code will take care of everything for you. 

Here are 5 other benefits that you may not have considered:

1. Reduced errors and duplicated payments: If your company is still manually processing invoices and payments, you're likely seeing firsthand how much errors can slow things down. Not to mention that these inaccuracies can damage relationships with suppliers and lead to duplicate payments. Meanwhile, companies who have automated their payment processes reap the benefits of increased efficiency and fewer mistakes.
   
   
2. Using business logic to make payments: As a business owner, you have the distinct  knowledge of when and how you need to move money between parties. You can utilise this to better control your business operations by embedding payments according to your own business-specific logic. For example, you could create an automated commission, refund or merchant settlement workflow that only pays out when specific conditions are met. This type of automation wasn't possible with manual payments, making this a great use case that demonstrates  the value of automation in streamlining your business processes.
   
   
3. Additional early payment discounts: Many organisations struggle to take advantage of early-payment discounts due to manual routing of invoices for payment and approval. Payment automation can help reduce the processing cycle and enable organisations to take advantage of more early payment discounts, optimising their working capital.
   
   
4. Improve customer and partner relationships: Payment processing is a vital part of any business, and the faster it is, the better. Shorter payment cycles and improved relationships with customers are just some of the benefits that come with speedy payouts. Whether you're a gambling establishment dealing with payouts or a payment processor working with merchants, timely settlements are essential to success. For e-commerce, refunds are an example of a time-consuming process that can be sped up and effectivized with automations, building consumer trust. 
   
   
5. Negotiate cheaper transaction fees: Automated payment may also give you the ability to negotiate lower transaction fees. When you process large volumes of payments, some financial service providers will offer discounts on their fees. Over time these discounts can lead to significant savings, which can be passed on to your customers. 

The Best Ways to Automate Your Payments

There are numerous ways to automate payments in your business, from setting up a recurring deposit from your bank account to using an hourly billing service to pay your staff.

Keep reading to learn about the best ways to automate your payments, to ensure that your business can continue to grow without issue.

1. Integrate Tipalti's automation API

If you’re familiar with automation, you may have heard the term API, which stands for Application Programming Interface. It allows different software applications to communicate with each other, facilitating data sharing and functionality integration.

Tipalti's payment automation platform streamlines your business finances, enabling tailored payment processing that fits your needs. With API access, you can optimize your processes for enhanced efficiency.

Tipalti offers a comprehensive platform that allows you to manage your finances programmatically, automate payments, and generate real-time reports tailored to your specifications.

With Tipalti, you can automate various tasks, including:

• Payroll and invoice payments
• Contractor and freelancer payments
• E-commerce product refunds
• Affiliate commission payouts
• Supplier payments based on custom logic
• Merchant settlements
• Instant customer deposit payouts on request

If you’re ready to automate your payments, a developer can quickly implement Tipalti’s platform. It’s designed for easy integration and can be managed with minimal effort. If you don’t have an in-house tech team, consider hiring a freelance developer for the setup.

2. Use Zapier to automate payments

If you’re not ready to commit to an API integration, you can use Zapier. Zapier is a tool that connects different applications with each other. It works by creating ‘zaps’: when something happens in one application (the trigger), an action is taken in another application (the zap).

For instance, you can use it to connect your business account to an invoicing application, so that when an invoice is received, the payment is processed automatically. Another example of using Zapier is to connect your business account to a time-tracking application, so that when staff members clock out, their hours worked are automatically paid.

While Zapier allows you to connect your business account to various applications, a potential downside is that you cannot design any tailor-made workflows. You’re limited to the pre-made Zaps that are available, which might not cover all of your needs. 

3. Set up many recurring payments

Another way to automate payments in your business is to set up recurring payments. A recurring payment is a payment that is scheduled to repeat at regular intervals, such as daily, weekly or monthly. There is no denying that recurring payments can be a lot of work to set up and keep track of and that they are limited to a predefined logic. However, they can help to take a load off your shoulders.

Takeaways for Setting up Automated Payments

Automating your payments can save you time and money. By using Tipalti's payment automation API, Zapier or recurring payments, you can automate your payment process and keep your business running smoothly. These methods can help you streamline your business, so that you can focus on more important tasks. Do you have any tips on automating payments? Share them in the comments below!