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9 Features to Look for in a Payments Management Software

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Payments management may become more challenging as your business expands and develops. In this case, using a payment management platform may be a good solution.

By choosing a reliable tool, you can manage your financial flows better. A payments management software can help prevent disorder in settlement with banks and service providers.

If you’re thinking of getting one, you need to know what features to look for. This guide outlines the things you may need from your payments management tool.

1. Invoicing

An invoicing functionality allows users to generate, manage, and track invoices for customers. 

You can manually input relevant data, including terms, payment amount, and payer information. You can also set the software to generate invoices after billing automatically. 

Invoicing is crucial since it is the first step in the payment management process for many. 

2. Payment Processing

After the production and delivery of invoices, the payment processing stage begins. Some payment management solutions allow users to embed payment options directly on websites. Some also enable manually-processed payments using digital transfers or cards.

3. Receipt Generation

A good payment management tool must allow users to generate and store receipts. This feature should work for transaction receipts processed within the software. 

The software should generate receipts as printed copies for in-person exchanges. It should also send receipts via email, text, or other avenues for the customer’s records.

4. Refunds and Discounts

A reliable payment management platform should be capable of factoring in discounts, coupon codes, and other forms of promotion. It should also be able to refund during or after transactions.

Look for a solution that accurately and automatically reflects total payments. This feature should still be reliable even if there are refunds or discounts within the transaction.

5. Transaction Monitoring

An essential feature of an effective payment management system is transaction monitoring. This feature offers three crucial capabilities:

  • Management of outgoing and incoming invoices
  • Recording payments made and received
  • Providing visibility into pending payments

A transaction monitoring feature helps users avoid missed payments. It also prevents unexpected withdrawals from business accounts.

6. Automated Global Payments Network 

The financial management solution you have should be able to handle complex payments. 

Global businesses with a worldwide reach use a wide range of different payment types, including:

  • Credit card payments
  • Credit card to cash payments
  • PayPal
  • Global ACH (Automated Clearing House) or eCheck
  • Check
  • Wire transfer
  • Debit card to prepaid payments

Other accounting software systems use different payment processing service providers. 

E-commerce companies do not have physical point-of-sale spaces for checkout. E-commerce customers cannot swipe their cards to pay.

Instead, e-commerce companies use online solutions, like a free mobile credit card reader, to get payments from customers. E-commerce businesses use payment gateways for payment processing and authorization.

7. Fast Supplier Onboarding

Today, supplier onboarding can be self-service. The process is more secure than manual input by the accounts payable (AP) department.

Self-service vendor onboarding improves internal controls and prevents fraud. It also transfers workload from the AP team to suppliers, who bear the cost. 

This is why a supplier management portal is essential in a payments system. The features keep suppliers informed about crucial processes, including time of payment. It also removes time-consuming inbound vendor calls.

Aside from saving time, self-service supplier onboarding also reduces future labor needs. Your AP team will be happier and more motivated with this feature.

8. Fraud Reduction

When choosing a payments management tool, look for fraud reduction capabilities. This feature can be any of the following:

  • Verifying suppliers
  • Detecting inactive vendors  
  • Preventing duplicate and fraudulent vendor invoice payments
  • Supporting secure payment processing
  • Reconciling payment transactions to the general ledger in real-time
  • Recording audit trails

9. Reporting

Reporting is another crucial tool for any payment management software. This particular feature should not only be robust in the amount of data it can analyze and store. But it should also have a straightforward and clean interface for easy data interpretation. 

An easy-to-understand interface is vital for effective payment management. Remember, data is only valuable if users can interpret it. 

The best payment systems can empower businesses with reporting and data analysis solutions. With these tools, the effects of outgoing payments are more apparent and more impactful.

Accurate reporting allows businesses to make informed decisions moving forward. It provides users with a complete picture of the outgoing cash flow occurring within the organization during a given period.

Today, there is a wide range of payment management software providers and developers. The tools may range in benefits, including streamlining, automation, and optimizing the payment management process. The aim is to reduce waste, boost payment security, and improve payment visibility and oversight.

An effective payment system can also reduce work hours, costs, and inconvenience. Additionally, it also lowers the potential for human error.

With reliable payment management software, entrepreneurs can focus their efforts on other business processes. Moreover, they can handle incoming and outgoing payments with ease and no worries.

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