The Road to Accelerated Payment Processing

Consumers expect seamless, lightning-fast payments.

Key Takeaways

  • Nearly 60% of small business failures are due to poor cash flow, often tied to slow payment processing.
  • Slow payment processing leads to abandoned carts and lost revenues.
  • Merchants should employ strategic techniques and use online payment processing to reduce payment processing times.
  • Segpay offers unparalleled payment solutions tailored to merchant’s needs.

E-commerce and online shopping continue to expand exponentially, with revenue projected to exceed $6.3 trillion globally by 2024. However, Gen Z consumers are impatient – a Forbes survey found that 25% will likely abandon online checkout if payment processing takes longer. With the variety of digital payment methods available today, from mobile wallets to QR codes, shoppers expect seamless, lightning-fast payments. 

Slow or clunky payment processing can lead to abandoned carts and lost revenue. One study found a page load delay of just one second caused conversion rates to drop by 7%. Payment speed has become critical to online business success. 

Understanding Payment Processing

Payment processing facilitates the transfer of funds from customers to merchants. It authenticates financial details, securely transfers money between accounts, and provides confirmation and records. While check and ACH payments have traditional processing times of days or weeks, digital payments can be instantaneous or near-instant. Real-time payments ultimately settle transactions in under 10 seconds, while faster processing can take 2-3 days but still outpaces older methods. 

How long does a credit card payment take to process?

On average, credit card payments take 1-2 business days to process, depending on the credit card payment processing company. Steps include:

  1. Authorization – Validate account funds 
  2. Batching – Combine the day’s payments
  3. Clearing – Send payments to the card network
  4. Settlement – Pay merchant from the network  

But only some small businesses receive payments in under three days. As customers increasingly expect real-time experiences, this processing gap results in dissatisfaction and loss of sales.

Why Accelerated Payment Processing Matters

Delayed payments quickly become problematic for businesses needing help to access revenue to cover expenses. Nearly 60% of small business failures are due to poor cash flow, often tied to slow payments. Fast payment processing provides quick access to funds to pay vendors, employees, and operating costs.  

Speed also offers a competitive advantage – customers are likely to complete more purchases without waiting days or weeks for payments to clear. Streamlined experiences lead to higher conversion rates and customer loyalty.  

Additionally, accelerated payment processing enables advanced financial planning with predictable, consistent cash flow. Businesses can confidently invest in growth initiatives knowing funds are available.

How to Increase Payment Processing Speed

There are several impactful techniques merchants can employ to reduce payment processing times and access revenue faster, such as the following:

1. Implement Strategic Batching Systems

Instead of sporadically depositing payments, high-volume merchants should put systems in place to batch transactions on a set schedule, at least daily. This groups payments for faster clearing and settlement. For example, e-commerce sites could automatically batch all transactions from the previous 24 hours every morning. Additional batching at noon or night for large volumes ensures payments are promptly submitted to processors.

2. Accept a Range of Digital and Mobile Payment Methods

Give customers options to pay how they prefer. Allowing various digital payment types – like PayPal, Venmo, Apple Pay, and bank transfers – increases the ability to accept real-time payments. Make options visible across devices. For example, 46% of Gen Z who prefer mobile payment expect to see Apple Pay and Google Pay displayed prominently on mobile sites and apps. 

3. Institute Customer Rewards Programs

Consider providing monetary incentives, discounts, or loyalty rewards to customers who pay invoices early or upfront. For example, offer a 10% discount for those who pay within seven days or 5% cashback rewards for total upfront annual payments. Even small rewards drive early payment behavior, providing merchants with instant revenue access.

4. Improve Invoicing Systems and Processes  

Clear, accurate, well-designed invoices prevent electronic payment processing delays stemming from confusion or discrepancies. Ensure invoices contain straightforward language, succinct but thorough payment instructions, various payment methods, and clearly displayed due dates. Automate sending reminders when due dates approach.  

Invest in customer relationship management tools to store up-to-date contact and payment details for invoice delivery. An optimized invoicing process dramatically increases on-time payment. For example, by upgrading their e-invoicing process, businesses can increase on-time payments within months. 

5. Reduce Late Payments with Automatic Reminders & Strategic Fees 

Use automated tools and preconfigured notifications to remind customers of upcoming or missed due dates. Send email, text, and app notifications when invoices are near or past the due date. Simple one-click options within alerts allow easy payment. If delinquent accounts persist, institute late payment fees or interest charges to incentivize on-time payment.  

Research indicates these combined invoicing and collections tactics reduced late payments by a substantial 40% across small businesses. Cash flow and forecasting also stabilized from consistent processing times.  

Implementing even one or two improvements, like daily batching or mobile payment acceptance, grants merchants access to accelerating technologies their customers increasingly expect. Partnering with an electronic payment processing expert optimizes tools and systems to realize the full benefits of faster payment.

Online Payment Processing

As digital payments explode in popularity, e-commerce merchants must prioritize smooth, seamless online payment experiences. Top payment methods to consider implementing include the following:

  • Online Banking Portals

Allow customers to log into their bank accounts and push payments directly. Transfers between accounts settle instantly, thanks to advancements. However, banks often enforce limits on transaction size and volume to mitigate risk, delaying big transfers.

  • Digital & Mobile Wallets

Online payment processing for small businesses services like Apple Pay, Google Pay, and PayPal enable one-touch payments through mobile devices and the web. Users load banking credentials once, then tap/click to pay. Though fast, additional verification steps like 2-factor authentication can add processing time. Merchants must optimize sites and apps to support one-click wallet checkout. 

  • QR Code Transactions 

Scannable QR codes are gaining traction for in-person retail, events, and services. Customers scan a unique QR code via a smartphone camera to instantly open a payment portal like PayPal for secure checkout. Both Chinese and American consumers are embracing the convenience; $2.37 billion in Chinese QR transactions are projected by 2025.

  • Cryptocurrency  

Blockchain-powered payments like Bitcoin, Ethereum, and stable coins allow near-instant money transfers without traditional financial institutions. However, price volatility and newer infrastructure can deter mainstream or large-scale adoption.  

  • Offsite Payment Portals

Solutions like PayPal Commerce Platform and Stripe Checkout create payment portals merchants embed or link to. Customers enter details in a secure portal, which returns transaction status to the merchant. This isolates merchants from handling or storing payment data while still providing quick experiences.

Whatever the method, merchants must:

  • Ensure site speed, reliability, and uptime to succeed. 
  • Test across browsers and devices. 
  • Invest in hosting, networks, and bandwidth to maintain responsive pages, clear calls-to-action, and minimal payment fields. 
  • Prioritize cybersecurity and compliance measures as well, like TLS, encryption, tokenization, frequent audits, and penetration testing. 

Optimized payment pages drive conversion upticks between 20-30%, while 25% of customers will abandon transactions entirely if page loads exceed 3 seconds. An experienced payment processor will include acceleration technologies and best practices tailored to a merchant’s needs.

A Reliable Payment Processor is Critical

Partnering with an optimized processor is vital to achieving maximum payment speed and business growth. Merchants need a provider who deeply comprehends modern payment methods and innovates specifically for convenience and speed.

Reliably quick validation, fraud detection, and settlement depend on the processor’s infrastructure. Top providers invest in technologies like artificial intelligence and local data servers to rapidly analyze transactions while minimizing risk. Regional servers also reduce transfer distances for quicker network transit around the globe.

Optimized batching systems further accelerate the process by automatically grouping transactions for clearing banks daily, if not multiple times per day. Without batching, sporadic individual payments delay settlement.

The right processor also supports omni-channel payments across devices and environments. Specializations in recurring billing models and subscription management maximize customer lifetime value – an area ripe for revenue growth yet often complex when managing changing card data over time.

Per Forbes, consumers report they would switch brands for a more straightforward purchasing experience, fueling demand for one-click payments. 

Thus, merchants require a processing partner that innovates specifically for convenience across digital environments. Look for extensive global payment channel access, account management, security protections, and settlement speed guarantees.

The processor should understand and solve the specialized payment situations high-risk and high-volume merchants face via customized solutions. Ultimately, they become a trusted partner invested in the merchant’s enduring success through transparent pricing models and dedicated support.

The right payment processor provides tailored acceleration technologies, allowing merchants to deliver the seamless experiences customers increasingly expect – driving revenue, loyalty, and growth over the long term.

Let Segpay Accelerate Your Payments

As an industry leader in e-commerce payment processing for over 15 years, Segpay offers unparalleled payment solutions tailored to today’s merchant needs – with expertise in everything from online banking integrations to subscription billing management.

We specialize in high-risk and high-volume industries like nutraceuticals, e-commerce, and digital services, where chargebacks and delays significantly hinder business growth. Our proprietary digital wallet technology accepts global payment methods and then batches and forwards transactions for next-day merchant payout. 

This rapid settlement timing sets us apart from traditional processors and maximizes cash flow for merchants. Segpay also provides customizable invoicing and reminders to propel on-time customer payments. 

We understand the complexities of automated recurring payment processing and subscription management. We use optimization tools to maximize customer lifetime value and prevent involuntary churn from expired cards or billing errors.

A dedicated account manager individually guides each merchant’s setup from start to finish – coordinating everything from double-entry bookkeeping to banking and transparent reporting needs. Ongoing support and consultation ensure business goals are continually met as market conditions evolve.   

Contact Segpay’s payment processing specialists to schedule a consultation catering to your business objectives. Our flexible solutions and acceleration technologies allow merchants to expand into new global markets while building sustainable revenue streams for long-term success.

Want to learn more about your recurring payment processing options?

With Segpay, merchants access top-tier payment solutions without ancillary fees or lengthy contracts. Our priority is cash flow optimization and rapid growth for partners of all sizes.

Reach out today to learn how Segpay can accelerate your business into the future of global e-commerce.  

Let's grow together.

Contact us today, we’d love to chat with you about how Segpay can help your business grow and improve client retention. It’s another way we are here for our merchants All the Way to Paid ™. Reach out to us with your questions at [email protected] and we can share more about the pros and cons of subscription model options.

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