Technology has paved the way for a better, faster, and more convenient payment process. Here are some ways payment automation can drive business...
Bulk Payments: Benefits and Advantages for Businesses
Learn about bulk payments in this article, including their benefits and advantages for your business.
Processing payments is standard for most businesses. But often, the process takes enormous amounts of time and resources, especially when conducted manually. When done inaccurately, manual work can lead to errors and delays that affect the company's cash flow.
Single transactions may be manageable, but the case may differ when payments start to pile up. Bulk payments happen when a company needs to settle multiple bills at once. Let us discuss this payment management system, focusing on its advantages and benefits for your business.
What Are Bulk Payments?
Bulk payment—also known as bulk transfer, mass payment, or batch payment—is a payment management solution that helps companies settle multiple bills to vendors and suppliers at once and process them in real-time.
Bulk payment processing is common to digital-forward companies, where online transactions have become a norm rather than an option. Businesses like these quickly realise that processing paper invoices and checks can be time-consuming and more prone to error.
In contrast, bulk payment systems expedite the process, creating a reliable and efficient method of conducting multiple payments.
An online travel booking marketplace, for instance, will surely benefit from using a bulk payment system as they regularly process countless payments to merchants. Bulk payments ensure that a company can successfully settle with all merchants in a secure, reliable, and timely manner. As a result, marketplaces can offer the best customer experience on their platform.
3 Ways to Make Bulk Payments
Making bulk payments is possible through any of these methods.
1. Bank transfer
Bank transfer is one of the most common methods of conducting bulk payments. In this method, money transfers happen between two bank accounts – the sender and recipient accounts. Bulk payments made through bank transfers are preferred due to their fast turnaround times and low cost.
2. Through a third-party payment aggregator
Some third-party payment establishments specialise in bulk payment solutions. Recipients will need to create a business account and sign in to receive the payments. The amount will be deposited into the recipient's third-party aggregator account instead of a bank account.
3. Credit card and debit card payments
This method is not as common as bank transfers and third-party payments. However, businesses favour credit and debit card batch payments because of the convenient refund processes.
A merchant, for example, can easily pay back a client's bill upon their request. However, it may take a while to receive the payment, and you must also consider the corresponding bank fees for bulk payment processing.
6 Business Benefits and Advantages of Using Bulk Payments System
More and more business owners realise the benefits of utilising a bulk payment system because of the following advantages and benefits.
1. Faster payment disbursal
Writing hundreds of check payments is time-consuming. The process can be streamlined using a bulk payment system, as it helps manage large volumes of payments at once. Doing so saves you time and effort, allowing your business to run smoothly and efficiently. You may also schedule payments with this method to ensure that you don't keep your suppliers and vendors waiting.
2. Secure payment system
Bulk payment systems are supported by detailed and robust security protocols like Secured Socket Layer, also known as SSL. This encryption technology ensures that sensitive data are uncompromised during the transaction. It secures your data by encrypting the link between a web server and a browser, ensuring that all data transferred remains private and safe from potential cybersecurity attacks.
3. Easy to manage
Adopting a bulk payment system allows you to quickly manage all the intricate processes involved in sending payments. You can make quick adjustments like adding raises or bonuses without starting from scratch for each employee. Bulk payments are easy to track, making them ideal for reconciling large sums of payables.
Processing payments individually can accrue transaction costs that can accumulate over time. Bulk transfers help save a significant amount on transaction fees while allowing for cleaner books and simplified accounting.
5. Reduced payout errors
Manual processing of bulk payables is more susceptible to human error. You can automate the process to ensure every detail is accurate through the bulk payment system. Doing so reduces the chances of erroneous information due to human oversight.
6. International payment
Bulk payments through third-party aggregators offer international payment options. The amount is directly deposited to the recipient's third-party account in their local currency.
Streamline Your Transactions with Bulk Payments
Bulk payments allow you to expedite your business's payment processes. They can also enable your company to simultaneously transfer funds to multiple recipients in a fast, secure, and convenient fashion.
Consider using Spenmo if you are looking to streamline your payment disbursement process. Spenmo's automated bulk payments feature reduces the time it takes to make payments by 80%. You can also track the status of all your payments in one dashboard, allowing for visibility while helping you minimise errors in the payouts.
To top it off, Spenmo offers the best international transfer rates guaranteed, with 0% FX markup. Simply drag and drop invoices to your dashboard and transfer money within a few clicks. Talk to us and schedule a demo today!