#b2b payment gateway

Building a company for where the world is going requires organizations to align with how their customers and workforces want to be paid: through experiences that are immediate, personalized, and inclusive of each recipient’s preferred payment modality and spend channel.

Patient refunds are on the rise, and healthcare payers and providers should do their part to ensure the experience goes smoothly. Offering digital payment options alongside checks is not only more expedient and cost-effective but provides a better customer experience and helps to reduce the instances of unclaimed funds.

By: Tony McGee, Senior Director, Market Management

Going to the doctor (and paying for it) can be a stressful experience. So, when patients are owed a payment—whether it’s a medical refund, Medical Loss Ratio (MLR) rebate, or wellness incentive—healthcare payers and providers should do their part to ensure the experience goes smoothly.

For most consumers, smooth means digital. According to McKinsey & Company, 89 percent of Americans use digital payments, and they seek new ways that modern payment options can make their lives easier. By adopting digital-first solutions for making payments at scale, healthcare organizations can streamline their back-of-house payment processes while delivering faster, more convenient and secure recipient experiences.  

Improving the Healthcare Refund Experience

Patient refunds are on the rise, totaling $3.1 billion in 2022. The biggest reason is that healthcare billing is fraught with complexity, making errors commonplace. If healthcare organizations incorrectly estimate the patient’s responsibility, they must provide a refund following the insurer’s adjustment.  

But for many healthcare organizations, the medical refund process creates even more room for error. 74 percent of patient refunds are sent by check, according to advisory group Aite-Novarica. Checks can cause friction for recipients if the payment is delivered to the wrong address, lost or stolen, or if the recipient is unbanked. For organizations, checks are an especially costly way to issue a high volume of payments, with each costing anywhere from $3 to 12 dollars when all expenses—from administrative labor to postage—are factored in. And if recipients don’t cash their refunds, the healthcare organization is responsible for escheatment, the process of turning over unclaimed property to the state.  

Offering digital payment options alongside checks is not only more expedient and cost-effective but provides a better customer experience and helps to reduce the instances of unclaimed funds. Going digital is also a chance to curtail check fraud, which leads to billions in losses every year. 63 percent of consumers believe digital payments are more secure, according to Onbe’s 2023 Future of Payments survey. Providing choices such as virtual or physical prepaid cards, push to debit—and, yes, traditional checks or ACH for those who want them—lets patients choose the refund method that works best for them.  

Encouraging New Behaviors with Wellness Incentives

With healthcare costs on the rise, driving healthier behavior—whether it’s scheduling an annual wellness checkup, getting vaccinated, or exercising more—has become a priority for everyone from healthcare payers to public health organizations. In 2022, less than half of large firms offering health and wellness programs said their programs were effective at improving the health and well-being of enrollees, according to the Kaiser Family Foundation. But just 40 percent of large firms paid workers an incentive to encourage healthy behaviors, suggesting that more could be done to help program participants prioritize their health.  

Findings on the role of incentives in health plans suggest that not only are rewards crucial to improving healthcare outcomes, but they work best when they offer value beyond the dollar value of the incentive. That includes letting recipients “shop” for their preferred incentive choice. When organizations ranging from employers to healthcare payers want to encourage healthy behaviors, creating incentive experiences that offer payment choice, instant gratification, and a seamless, digital-first experience could help improve participant engagement and retention. Especially now that many consumers prefer to use payment apps and mobile wallets, adding more options for participants to access and spend their incentives could help drive program success.

Overcoming Barriers to Payment Choice

When handling billing and collections, most healthcare organizations are equipped to accept digital payments. But when paying patients and customers, these same organizations typically lack the technology and infrastructure they need to meet diverse payment preferences. That’s where partnering with a fintech can help with the heavy lifting. By partnering with a payments expert, healthcare organizations can offer a better experience for recipients while removing the burden from back-office staff. They can save money on check processing, hand off the risk and responsibility of managing unclaimed property, and reduce the risk of payment fraud by taking advantage of the latest intelligent monitoring solutions in the industry. And they can deliver innovative payment experiences that increase recipient satisfaction, drive healthy behaviors, and give recipients the power to choose their preferred payment method.  

The healthcare landscape is unlikely to become less complex anytime soon. But partnering with a fintech that specializes in handling payouts can help to simplify one piece of the puzzle: delivering positive payment experiences for both your recipients and your team.

To learn more, view our fact sheet, 5 Things to Know About Patient Refunds.

Original Source: https://www.onbe.com/post/how-healthcare-orgs-can-evolve-their-payment-strategy-and-improve-recipient-satisfaction

While economic uncertainty can be worrying, times of change bring the chance to innovate, optimize your business processes, and discover new sources of revenue. If your business routinely makes disbursements to customers and workers, upgrading your payment strategy is an opportunity you might not have considered.

In part two of this series, the Onbe editorial team spoke with Damien Glista, Vice President of Relationship Management and Sales at Onbe, to glean insights from his 16 years in the payments industry. Glista shared ways that adopting modern, digital-first payment solutions can save time and labor, unlock cost savings, and reduce risk while improving the payee experience.  

The High Cost of Check Processing

For most businesses, making a payment means cutting a check. While it sounds simple, issuing paper checks becomes complex and costly when a high volume of payments is involved—think consumer refunds, rebates, or salesperson incentives. “Check processing is a big job for accounts payable teams,” Glista explained. “Then, since not every recipient will cash their check, staff end up spending many more hours either resending checks or filing unclaimed property reports.”

Paper checks don’t just mean an administrative hassle; they can result in steep costs for payers, generally in the range of $3-12 per check. “You have to factor in not only the cost of paper and postage, but the expense of dealing with checks that weren’t cashed,” said Glista. “Each state has different rules and regulations for handling unclaimed property, and getting it wrong could lead to steep fines. Many businesses don’t realize how much they could save by switching to a third-party payment solution.”

Partnering with a payments fintech lets businesses hand over or automate most of the administrative labor involved in managing payment programs, plus gain access to more efficient payment solutions, such as virtual cards. “You not only can reduce the work involved in making and reconciling payments, but you can switch to faster, digital and electronic payment methods that eliminate the costs of printing and delivery,” said Glista.

Fraud Management: A Steep Administrative Burden

Working with a payments partner can also eliminate the burden of handling fraud—and help reduce fraud activity through a proactive approach. 63% of organizations reported check fraud in 2022, according to the Association for Financial Professionals (AFP). “Whenever fraud occurs, your team needs to void and reissue the check, alert the bank, and file a claim with your company’s insurance provider,” says Glista. “Depending on the scale of your payments operation, that could turn out to be an enormous lift.”

Through a payments fintech, businesses could reduce fraud with a combination of A.I.-enabled fraud detection solutions and modern, digital payment methods that come with less fraud risk. “At Onbe, we not only have the latest tools and capabilities to combat fraud, but we assume all responsibility for fraud on behalf of our clients,” says Glista. “Even if you have the expertise to prevent and mitigate fraud in-house, at the end of the day, most businesses are better served by handing over the risk, altogether.”

Unlocking Time and Opportunities

Offloading fraud management and other administrative processes saves businesses hours per week. “With a lighter burden, your staff can spend more time on higher-value activities,” said Glista. “Ultimately, that could lead to uncovering new ways for your business to innovate and drive efficiency.”

Using a corporate payouts gateway also improves the experience for payees, resulting in a more engaged and loyal base. “Paying primarily by check comes with frictions for recipients as well as your business,” said Glista. “These range from delivery issues if your recipient changed addresses to a lack of options for underbanked consumers. And the costs to you could be anything from customer service escalations to the loss of a customer.” The majority of consumers prefer digital payments to checks and want to be able to choose their preferred payment method, according to Onbe’s 2023 Future of Payments survey. Glista explained, “Using a payouts gateway to switch from checks to more cost-efficient, in-demand payment choices is a win for your back-office team, your recipients, and your bottom line.”

Want To Win Seller Loyalty? Start With Marketplace Payments

Today, how e-commerce brands handle marketplace payments is a key business differentiator.

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Today, how e-commerce brands handle marketplace payments is a key business differentiator. With online sales on the rise, today’s sellers have big opportunities in store—and their choice of where to peddle their products.

In 2020, 50 top marketplaces based in the U.S. grew sales by 40%. (The fastest-growing new marketplace, alcohol delivery service Drizly, saw 300% growth.) While top marketplaces like Amazon continue to dominate the scene, brands and e-commerce businesses looking to diversify are turning to a growing number of options—meaning that to scale up, burgeoning marketplaces must attract not just consumers, but sellers. It’s clear that to differentiate, marketplaces can’t overlook any aspect of the seller experience. That includes marketplace payments—specifically, how sellers get paid.  

According to research from McKinsey & Company, offering value-added services for sellers will be key to standing out in this competitive landscape. Sellers must compete, themselves, to position their products effectively and meet customer demands for efficient order fulfillment. So, they are naturally eager to work with marketplaces that make that job easier—whether by offering training and tutorials, sharing access to data and trend analytics, or continuously improving their platforms to give sellers more capabilities and benefits.

For instance, eBay recently expanded its product authentication services for items such as watches and sneakers. Products are shipped to a team of experts who inspect each item for authenticity, offering added protection for sellers—and confidence for their customers—at no extra cost. And consider how Etsy, which started in a Brooklyn apartment, has grown its seller base to over 2.5 million people. This hotspot for handmade and vintage goods offers an array of digital toolsfor marketing and advertising, including the ability to create a custom website powered by the seller’s Etsy shop. Sellers can even access tools that help them create targeted social posts and free ads to promote their products. These kinds of value-added services are a win-win for brands and marketplaces, and they are gaining prevalence as more platforms realize the power of supporting their sellers.

But one area where most platforms can still do a better job is by building a better seller payout experience. It’s common for marketplaces to offer ACH transfers, which can take three or more business days to clear, or access to funds via a third party that charges fees to the seller.  Frustrations during payment can turn off and demotivate sellers. Fortunately, other, better options are available for issuing marketplace payments to sellers—such as reloadable virtual cards that make it possible to pay sellers quickly or even in real time. Cards charge no fees to the seller and can even eliminate payment administrative costs for marketplaces. These digitally native payments provide flexibility, choice, and convenience for payees, enabling them to spend their funds anywhere—online, on mobile, or in person via a mobile wallet—in addition to options like transferring funds or cashing out.

That said, the real power of digital payments resides in the level of engagement possible for marketplaces wishing to support and retain sellers. When a marketplace makes an ACH transfer, it has little control over the payee’s experience and no opportunities to build loyalty. With a branded, customizable card, marketplaces not only stay top of mind for sellers, but they can easily build in rewards programs—say, when sellers spend their earnings at select gas stations—and even sweepstakes to engage cardholders with monthly prizes. The marketplace payment experience becomes one more way to add value for sellers and engage them at multiple touchpoints.

As marketplaces continue to proliferate, winning seller loyalty will become both more challenging and more important than ever. The good news is that many e-commerce platforms are already harnessing the benefits of digital tools to enhance seller success and satisfaction. Moving forward, companies that extend this approach to every aspect of the seller experience, including marketplace payments, will stand out as exceptional platforms amid a growing number of choices.

In today's rapidly evolving business landscape, the significance of streamlined and secure payment processing cannot be overstated. B2B (Business-to-Business) transactions involve large sums of money and complex financial interactions, necessitating efficient and reliable payment solutions. Enter the B2B payment gateway—a sophisticated tool designed to facilitate seamless financial transactions between businesses. In this blog post, we will explore the advantages of B2B payment gateways and provide insights into how to build one.

Advantages of B2B Payment Gateways

Enhanced Efficiency

B2B payment gateways optimize the payment process by automating various tasks, eliminating manual intervention, and reducing errors. They enable businesses to handle high volumes of transactions, resulting in improved operational efficiency.

Scalability

As businesses grow and expand their operations, B2B payment gateways provide the flexibility to accommodate increased transaction volumes without compromising on performance. This scalability ensures that businesses can handle larger transaction loads as their customer base expands.

Security and Fraud Prevention

B2B payment gateways employ advanced security measures to protect sensitive financial data, including encryption, tokenization, and two-factor authentication. These robust security features ensure that businesses can transact with confidence, safeguarding their financial interests and mitigating the risk of fraud.

Multiple Payment Options

B2B payment gateways offer a wide range of payment options, including credit cards, ACH (Automated Clearing House) transfers, virtual wallets, and electronic fund transfers. This versatility allows businesses to cater to the diverse payment preferences of their customers, enhancing convenience and customer satisfaction.

Payment Tracking and Reporting

B2B payment gateways provide comprehensive reporting and tracking features, enabling businesses to monitor payment status, view transaction history, and generate detailed financial reports. These insights help in better financial management, cash flow forecasting, and identifying trends or discrepancies in payment patterns.

Integration Capabilities

B2B payment gateways can seamlessly integrate with existing business systems such as accounting software, enterprise resource planning (ERP) systems, and customer relationship management (CRM) tools. This integration streamlines payment processing, eliminates manual data entry, and enhances overall business efficiency.

Building a B2B Payment Gateway

Building a robust B2B payment gateway involves a strategic approach and careful consideration of various factors. Here are the key steps to consider:

Identify Requirements

Clearly define your business requirements, including the types of payments you wish to accept, desired security measures, integration needs, and scalability requirements.

Choose a Reliable Payment Gateway Provider

Select a reputable payment gateway provider with experience in handling B2B transactions. Consider factors such as security features, reliability, customer support, and the provider's track record.

Customization and Branding

Tailor the payment gateway to align with your brand's identity and user experience. Customize the interface, branding elements, and the user journey to provide a consistent and seamless experience to your customers.

Security Measures

Implement robust security measures, such as encryption, tokenization, and fraud detection mechanisms, to protect sensitive financial information and build trust with your customers.

Integration with Business Systems

Integrate the payment gateway with your existing business systems, such as accounting software or CRM platforms, to streamline data flow and automate reconciliation processes.

Testing and Quality Assurance

Thoroughly test the payment gateway to ensure its functionality, security, and compatibility with different devices and browsers. Conduct rigorous quality assurance processes to identify and rectify any issues or bugs.

Compliance and Regulations

Familiarize yourself with the relevant financial regulations and compliance requirements for B2B transactions in your jurisdiction. Ensure that your payment gateway adheres to these regulations to avoid any legal complications.

Conclusion

Innovation in our industry doesn’t just mean changing how businesses and consumers make and receive payments. We need to innovate when it comes to building a diverse, inclusive, and supportive community, too—one that reflects our clients and the customers and workforces they serve. As Chief Delivery Officer, I lead a team that is doing just that—not only building and fostering a vibrant, welcoming culture but looking beyond our business to give back to the communities that intersect with ours. This work requires daily focus throughout our organization and I’m proud to champion these efforts.

Let me back up a bit—when I got my start in this industry, I was one of only a few women at the table. While that’s changed somewhat, women remain a minority in this field, comprising just 19% of fintech leadership. So, mentoring professionals who are underrepresented in fintech has always been important to me. I was fortunate to participate in the inaugural year of RiseUp, a program that helps aspiring women leaders unlock the next steps in their careers. During the program, I mentored two incredible women, guiding them to find the confidence and job offers they deserve.

Creating similar opportunities at Onbe has been a priority for me and the executive leadership team. We’ve focused on promoting from within and mentoring employees as they advance in their careers. I’m also proud to say that although women leaders remain underrepresented in fintech, at Onbe we have taken major strides to change that: 52% of our company leadership is comprised of women. In addition, 37% of our employees identify as BIPOC and over half of all new hires over the past year have been BIPOC—part of our commitment to building a team that reflects our diverse world.