Migrating to electronic payments delivers instant benefits to SMEs
TORONTO, Dec. 13, 2013 /CNW/ - Canadian small and medium sized business owners rely heavily on cheque as a form of payment when conducting B2B transactions. According to MasterCard and Kaiser Associates Research, 49% of all Business to Business (B2B) payments are with cheque. Also, the research showed that use of commercial cards offer a seller savings of $12.71 per $500 transaction. Business owners that use commercial cards in B2B transactions see instant benefits. Card acceptance costs 41% less than other payment methods.
With increased costs of stamps and the time consuming process of mailing and shipping, cheque as a form of payment has become cumbersome and costly to business owners, slowing down business and increasing risk of fraud. Cheque payments also pose the following challenges to business owners:
- Errors can be easily made by the buyer and can be costly and time consuming to rectify
- Requires invoice production
- Requires the need to extend trade credit to the buyer
- Late payment or non-payment risk
- High Order to Cash time as cheques take time to clear
- Reduced working capital
The "Acceptance Matters, And Now We Know By How Much" white paper details the full MasterCard and Kaiser Associates research findings. In 2013, the MasterCard Council For Small Business hosted five seminars with business owners in Halifax, Toronto, Port Credit, Brampton, Guelph, Edmonton, and Vancouver to provide more education resources and a better understanding of how to make the most of electronic payments for their businesses. MasterCard will continue to host seminars across Canada to meet more merchants and demonstrate the value of electronic payments to business owners in 2014.
MasterCard NYSE: MA, www.mastercard.com, is a technology company in the global payments industry. We operate the world's fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard's products and solutions make everyday commerce activities - such as shopping, traveling, running a business and managing finances - easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews join the discussion on the Cashless Pioneers Blog and subscribe for the latest news on the Engagement Bureau.
SOURCE: MasterCard Canada
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