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How NetSuite Integrated Payments Can Bolster Your Accounts Receivable Processes

Published on 5 min read

In this blog, you'll learn how you can streamline accounts receivable workflows by integrating your payment processing with Oracle NetSuite.

New logo Net Suite and Embedded Payments 6 Reasons Why its a Must Have Update

More than 24,000 companies rely on Oracle NetSuite to run their business. From supply chain management to accounts receivable (AR), NetSuite is a vital system for finance teams.

But, there are still some tasks that NetSuite can’t run, notably payment processing. Fortunately, NetSuite has partnerships in place with payment processors to give users this critical functionality.

If you’re a finance leader who's chosen to run customer transactions through third-party applications that don’t integrate with your NetSuite instance, you’re missing out on significant time and cost savings.

If this rings true, then this article is for you. Read on to learn:

6 challenges for AR teams that don’t integrate payment processing with NetSuite

If you haven’t yet been able to add integrated payment processing into your workflows in Netsuite, that probablymeans:

  1. You're manually updating customer records as invoices get paid
  2. You use multiple third party processors for a single transaction
  3. You have unique processing requirements for all your sales channels
  4. You sometimes have inaccurate data due to manual reconciliation
  5. You face a higher risk of payment fraud, due to having many systems accessing sensitive payment data
  6. You find it hard to identify at-risk accounts due to your data living in multiple places

With payment processing software built for NetSuite, you can tackle these challenges head-on.

How integrated payments streamline AR workflows

When important information resides across multiple systems, you lose data integrity. And when that data is used to make important financial decisions, you need to know that you can rely on it.

Integrated payments software built for NetSuite will help you transform your ERP into the single source of truth for all your AR activities.

It'll also help your AR team drive efficiency, reduce costs, and speed up cash flow by:

1. Reducing manual processes

Traditional collections are rooted in manual tasks that are costly and time-consuming. One of the biggest time sinks for AR teams is reconciling payments with open receivables in their financial management system.

When settlement data is captured and stored in your system via NetSuite integration, you’re able to perform payment reconciliation in real-time and avoid double data entry. This saves your team the effort of tracking down files and having to manually match payments with bank statements.

Many integrated payments providers can save your team even more time by automating invoicing and updating expired credit cards.

2. Driving incremental sales

Whether you need to capitalize on the rise of ecommerce or capture revenue across different sales channels, supporting a variety of digital payments is a must.

An integrated payment solution that supports a variety of payment methods can significantly reduce the time it takes to collect payment. (Companies that use Versapay for integrated payment processing can expect to accelerate payment collections by 25%).

Plus, with average cart abandonment rates hovering around 70% for many merchants, offering more payment options can be the difference between closing or losing a sale.

3. Lowering processing costs

Credit card processing fees amount on average to 2% of every transaction. An integrated payment solution is designedto lower your costs on a per-transactions basis, in some cases, up to 40%.

This is made possible through interchange optimization, a process that helps merchants qualify for the lowest possible interchange rates to help them save on processing costs.

4. Accepting customer payments right away

Companies hoping to digitize their AR workflows are often inhibited by a lack of IT resources and infrastructure. Many third-party payment solutions require you to be well-versed in their environments and force you to interact with them on their terms. This results in slower onboarding times, delaying your ability to collect customer payments.

But with a payment processing solution that has pre-built connectors to NetSuite, the implementation process is typically shorter than that of a net-new system.

This means you’re able to start collecting payments from your customers quickly and across all sales channels like point of sale (POS), ecommerce, and AR. Look out for an integrated payments provider with no set-up fees and no implementation costs.

5. Preventing payment fraud and chargebacks

Any third party that has access to your cardholder data environment can expose you to vulnerabilities.

An integrated payment solution allows you to securely process payments and transmit sensitive customer data directlyinto NetSuite. This helps reduce your risk of fraud because there are fewer systems interacting with that sensitive payment data.

Look for an integrated payment processor that’s encrypts and tokenizes credit card data in keeping with PCI compliance. That way, your team never has to interact with cardholder data.

Even better, seek out a payment processor that has fraud prevention tools like CAPTCHAs and address and credit card value (CVV) verification. This helps eliminate fraudulent (and costly) chargebacks without limiting how customers can pay.

How you can integrate payment processing in NetSuite with Versapay

Versapay's integrated payments solution extends NetSuite's capabilities to streamline your AR workflows and improve cash flow. For example:

  • You can automatically email invoices to your customers with a link to where they can pay the invoice right away, without needing a login.
  • Customers can pay one or more invoices at a time and save their payment information to make recurring payments easy.
  • You can customize which of your bank accounts the payments should go to. And when customers make payments, the ledger in NetSuite will reflect this change automatically.
  • You can accept payments for all your sales channels including ecommerce, POS, and accounts receivable with a single system. You can accept credit card payments, debit payments, ACH payments, virtual card payments, and bank payments.
  • Within Versapay, all payments are tokenized and sensitive card data is encrypted for secure payment processing. Level 2 and Level 3 data processing allow for reductions in interchange fees of up to 40%.

How ESA reduced their volume of past-due invoices with Versapay for NetSuite

Many major businesses have already accelerated their cash flow by extending Netsuite’s capabilities with Versapay.

Engineering Sales Associates (ESA), a distributor of compressed air and liquid filtration systems, is one such company. The company’s inventory management, invoicing, communication management, and payment processing are all tied to Oracle NetSuite.

By integrating their payment acceptance with NetSuite, ESA can now automatically invoice customers when shipping products. In only three months, ESA reduced their past-due invoices from 33% to 9% with Versapay Payments for Netsuite.

When something is shipped, it's showing in NetSuite, and we can automatically invoice customers. It's great to be able to pull a report and say your payment was due yesterday
Kathie Lampkin, Senior Accountant, ESA

Join ESA and thousands of other businesses streamlining their AR and accelerating cash flow with integrated payments. Book a demo today.

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