A critical aspect of modern business, merchant receivables enable businesses to accept various forms of payments from their customers, including credit and debit cards, electronic checks, and digital wallets. As consumer preferences shift towards cashless transactions, understanding the benefits and concerns of merchant receivables is essential for any business owner. By accommodating these preferences, merchants can capture a larger customer base and reduce the chances of lost sales due to payment method limitations.

Benefits and challenges

Speed

To keep pace with today’s high-tech, instant-access world, businesses understand the need to employ efficiencies that help them remain competitive. Electronic payments typically process faster than paper checks, and the benefits extend beyond simply getting paid faster. A swifter turnaround can set the stage for a more secure and predictable financial future, improving cash flow and enabling businesses to reinvest in operations, manage expenses more efficiently, and reduce the risk of bounced checks.

Many processing systems also include integrated reporting tools that offer detailed insights into sales and transaction data. These tools can play a pivotal role in helping businesses handle their finances, monitor sales trends, and spot growth opportunities.

Safety

As a merchant, concerns about safety and security are paramount. In 2023, mid-size businesses reported an average of $1.4 million in annual fraud losses, according to research from LexisNexis Risk Solutions. Reputable payment processors understand this and go the extra mile to offer robust security measures, including encryption and tokenization, to protect sensitive customer information. These stringent measures help reduce the risk of data breaches and fraud — providing a strong sense of reassurance and peace of mind for both merchants and customers.

Disputes and disruptions

Some primary concerns include chargebacks and disputes, which occur when a customer disagrees with a transaction and reverses funds. Managing chargebacks can be time-consuming and costly for merchants. If disputes are not handled properly, they can increase fees and damage the merchant’s reputation. Other challenges include compliance and security requirements, particularly for smaller businesses without dedicated IT staff. 

“Integration of payment processing systems with existing business infrastructure, such as point-of-sale, and ERP/accounting systems can be challenging too. Incompatibility issues or technical difficulties can disrupt operations and require additional investment in technology and support,” stated Jamie Vos, Vice President of Commercial Products at Wintrust. “Finding a payment processing partner that can easily integrate into existing business systems will help minimize operational disruptions, allowing business owners to focus on growth and customer satisfaction.”

The right partner

Choosing the right partner is crucial to mitigating challenges and should be approached carefully, as it can significantly impact business success.

“Wintrust Bank offers a comprehensive suite of merchant payment processing services¹ designed to meet the diverse needs of businesses of all sizes. We focus on building deep relationships with merchant customers to understand their unique needs,” states Carly Newman, Vice President of Treasury Management. “Our team provides knowledge and flexibility that helps businesses build a robust payment solution catering to their customers’ preferences.”

The right solutions

Real-time payments

Wintrust Receivables and Merchant Services offer real-time payments through its partnership with Elavon, a robust platform that enables businesses to be funded quickly with minimal waiting or delay. Other standout features include seamless integration with existing business systems — simplifying the payment process, reducing administrative burdens, and allowing business owners to focus on growth and customer satisfaction. 

Treasury management solutions

Advanced treasury management solutions are critical. Wintrust offers a full suite of receivables solutions including retail and wholesale lockbox services, remote lockbox, remote deposit capture,² ACH collections, cash vault, integrated receivables, image cash letter, and merchant services processing.¹ With a comprehensive suite of paper-based and electronic receivables solutions, businesses will be able to access funds with transparency and speed so they can focus on what’s most important: running their business.  

Online banking

Wintrust’s i-BusinessBanking™ platform provides businesses with a centralized tool to manage their cash flow, monitor transactions, and access a suite of treasury management services. These solutions ensure businesses can optimize their financial operations, reduce manual processes, and enhance efficiency.

Facilitating seamless transactions

From small retail shops to large e-commerce platforms, implementing effective payment solutions can make a huge difference in terms of efficiency. Businesses can diversify the forms of payments accepted — welcoming a wider range of customer preferences — all while easing concerns about fraudulent activity and operational disruptions. Partnering with a trustworthy team, that takes the time to understand the ins and outs of their customers’ businesses, ensures merchants can make informed decisions and offer their clients the best possible service.

Banking products provided by Wintrust Financial Corp. banks.

1. Merchant Processing Services. Available through Elavon.

2. Business Online Banking Services. Use of online banking required for access to mobile/remote banking. Remote deposit requires an established business checking account with the bank. Online banking processing cutoffs remain the same in mobile. Mobile/internet connectivity required. Third-party message, data, &/or internet fees may apply.